Americas Petrogas Makes New Vaca Muerta Shale Exploration Discovery-Gas and Liquids
CALGARY, ALBERTA--(Marketwired - Apr 7, 2013) - Americas Petrogas (TSX VENTURE:BOE) ("Americas Petrogas" or the "Company") is pleased to announce the discovery of gas and natural gas liquids on its Aguada Los Loros well, ALL.x-1, a vertical well that was drilled on the Los Toldos I block (98,300 gross acres or 398 square kilometers or 154 sections) in central Argentina. The ALL.x-1, which completed drilling in 2012, intersected the Vaca Muerta formation (thickness 562 metres or 1844 feet) along with other secondary targets. The well was hydraulically stimulated with four stages in the Vaca Muerta shale formation in early 2013. The initial production of the Vaca Muerta shale formation, after the clean-up flow back, at depths between 2570 to 2929 metres (8432 to 9609 feet), increased from 1.3 million cubic feet (36,738 cubic meters) per day to 3.2 million cubic feet (90,418 cubic meters) per day of natural gas with 9 to 18 barrels of oil per day condensate (54-58 degree API) on managed choke sizes (4-6mm).
The well-head pressure declined normally during flow testing. This, in addition to core and other studies, will help the broad evaluation of the future productivity and the potential of the well and the reservoir. Currently the well is shut-in for a Pressure Build-up test.
Mr. Barclay Hambrook, President and CEO of Americas Petrogas said, "We are very excited with the results of this test showing strong sweet gas rates and increasing rates of high quality condensate in a very large block. We continue to de-risk our shale blocks, potentially adding reserves, and we are encouraged with the potential of our Los Toldos blocks."
Mr. Güimar Vaca Coca, Managing Director of the Company's Argentina operation, said "Located approximately one kilometer from a major gas pipeline, this project may be very valuable to help restore Argentina's gas self-sufficiency."
Americas Petrogas is the Operator of the Los Toldos blocks and holds a 45% Work Interest. ExxonMobil also owns a 45% Work Interest with the remainder held by Gas y Petroleo del Neuquen.
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 and tight sands) oil and gas interests in numerous blocks in the Neuquen Basin of Argentina. Americas Petrogas has joint venture partners, including ExxonMobil and Apache, on various blocks in Argentina. For more information about Americas Petrogas, 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 the ability of the Company to continue to test the ALL.x-1 well and/or to commercially produce or sell oil, gas or other hydrocarbons from the well (or any one of the formations contained therein), including the timing of such activities, should all be viewed as forward-looking statements. The presence of hydrocarbon shows is not necessarily indicative that hydrocarbons are capable of being successfully produced in commercial quantities. There is no assurance reserves will be assigned to such hydrocarbon bearing formations. There is no assurance that future wells will be drilled on the Los Toldos blocks 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.
Any references in this press release to test rates, flow rates, initial test or production rates, and/or early production rates are useful in confirming the presence of hydrocarbons; however, such rates are not necessarily indicative of long-term performance or of ultimate recovery. Such rates may also include recovered "frac" fluids used in well completion stimulation. Readers are cautioned not to place reliance on such rates in calculating the aggregate production for the Company.
Where applicable, natural gas has been converted to barrels of oil equivalent ("BOE") based on 6 Mcf:1 BOE. The BOE rate is based on an energy equivalent conversion method primarily applicable at the burner tip and does not represent a value equivalent at the wellhead. Use of BOE in isolation may be misleading.
