CALGARY, ALBERTA--(Marketwired - Jun 10, 2013) - Americas Petrogas Inc. ("Americas Petrogas" or the "Company") (TSX VENTURE:BOE) is pleased to provide the following update of its conventional oil and gas activities in Argentina.
Conventional Light Oil and Oil Plus
From January to May 2013, Americas Petrogas has continued to drill exploration wells on Medanito Sur and has discovered four new production areas in three regions of the block:
- El Alpataco (northwest region of the block) -- the reservoir of this new area is comprised of sands very similar to the ones found in the El Jabali field. It is offset by wells on adjacent blocks.
- El Calden Este (eastern portion of the block) -- the reservoir of this new area consists of interbedded Cuyo Group sands and also fractured pre-Cuyo basement.
- Amilcar and La Meseta (central region of the block) -- there have been two new discoveries in the fractured pre-Cuyo basement. These areas remain to be delineated but offer the potential to open up large new drilling areas.
For the first quarter of 2013, the Company's production averaged approximately 2,200 bopd (net). For April and May, production averaged 2,390 bopd (net) and 2,560 bopd (net), respectively.
In addition to increased production, Americas Petrogas has collected cash from Oil Plus certificates in the amount of approximately US$11.9 million from April up to the current date, with additional Oil Plus cash amounts to be collected in the future.
Barclay Hambrook, President and CEO, stated, "Our growth in production is expected to increase our operating cash flows even more than in our first quarter, and combining our operating cash flows with Oil Plus cash flows that have already been received in April, May and June to date of US$11.9 million, we are in a position to fulfill our capital plans for all of 2013 and well into 2014 without the need for additional equity funding."
The Company is also pleased to announce that it has created a "TALK:BOE" feature on its website. The objective of this feature is to inform and educate investors about the Company, presented in a simple Question and Answer format with periodic updates. Additionally, TALK:BOE may at times highlight information and provide links to various sources on subjects including shale oil and shale gas (particularly in the Neuquen Basin), drilling activities, oil and gas services, acquisitions and divestitures, joint ventures, economics, financings, investment and political announcements.
About Americas Petrogas Inc.
Americas Petrogas Inc. is a Canadian company whose shares trade on the TSX Venture Exchange under the symbol "BOE". Americas Petrogas has conventional and unconventional shale oil and gas and tight sands oil and gas interests in numerous blocks in the Neuquén Basin of Argentina. Americas Petrogas has joint venture partners, including ExxonMobil and Apache, on various blocks in the shale oil and gas corridor in the Neuquén Basin, Argentina. Americas Petrogas also owns an 80% interest in GrowMax Agri Corp., a private company involved in the exploration for near-surface potash, phosphates and other minerals, and potential development of a fertilizer project in Peru. Indian Farmers Fertiliser Co-operative Limited (IFFCO) owns a 20% interest in GrowMax Agri Corp. For more information about Americas Petrogas Inc., please visit www.americaspetrogas.com
Certain statements contained in this press release constitute "forward-looking statements" as such term is used in applicable Canadian and US securities laws. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or are not statements of historical fact and should be viewed as "forward-looking statements". These statements relate to analyses and other information that are based upon forecasts of future results, estimates of amounts not yet determinable and assumptions of management. Such forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.
In particular, statements (express or implied) regarding: new discoveries on Medanito Sur block and the Company's ability to generate production and cash flow from those new discoveries; future collections of cash relating to Oil Plus; and fulfilling the Company's 2013-2014 capital plans without the need for additional equity funding should all be viewed as forward looking statements. The presence of hydrocarbon shows or discoveries is not necessarily indicative that hydrocarbons are capable of being successfully produced in commercial quantities or that reserves will be assigned to such hydrocarbon bearing formations. There is no assurance that future wells will be drilled or that if drilled, such wells will be successful.
There can be no assurance that such forward-looking statements will prove to be accurate as actual results and future events could vary or differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements contained in this press release. The forward-looking statements contained herein are expressly qualified by this cautionary statement.
Forward-looking statements are made based on management's beliefs, estimates and opinions on the date the statements are made and the Company undertakes no obligation to update forward-looking statements, if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable law.
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