Americas Petrogas Provides Update on Argentina and Peru Operations
CALGARY, ALBERTA--(Marketwire - Nov. 2, 2012) - Americas Petrogas (TSX VENTURE:BOE) ("Americas Petrogas" or the "Company") is pleased to provide an update on its activities in Argentina and Peru.
Conventional Light Oil
For the third quarter of 2012, Americas Petrogas has continued to increase production and sell oil from two of its conventional blocks, Medanito Sur and Rinconada Norte, both operated by the Company. Production for the third quarter averaged approximately 2200 bopd (net), an increase of approximately 49% over the average daily production during the second quarter of 2012. During October 2012, average production exceeded 3,000 bopd (net) representing an increase of approximately 36% over the average daily production during the third quarter.
Construction of the Company's own production/processing facilities to handle up to 6300 bopd of gross production is continuing and is expected to be completed before the end of 2012.
Unconventional Shale Oil and Gas
-- On the Totoral block (Americas Petrogas - 90% working interest and
operator), the Company has completed all logistics and is about to
perform a hydraulic fracture stimulation ("frac") program, followed by
testing of the La Hoya well, LHo.x-1, which completed drilling in July
2012. The Totoral block is located at the southern region of the Neuquen
Basin where the Company has identified the Vaca Muerta at a much
shallower depth compared to other parts of the Basin.
-- On the Los Toldos II block (Americas Petrogas - 45% working interest and
operator), the Los Toldos Este well, LTE.x-1, which completed drilling
earlier in 2012 and completed fracing in September, continues to be flow
-- On the Los Toldos II block, the Aguada de Afuera well, ADA.x-1, which
was spud in early October 2012 continues to be drilled and is currently
at a depth of approximately 2,750 metres (9,022 feet) with a projected
total depth of 3,350 metres (10,990 feet).
-- On the Los Toldos I block (Americas Petrogas - 45% working interest and
operator), drilling of the ALL.x-1 well was completed in September 2012
and analysis of the cores and cuttings is underway and leading towards
developing a plan for future completion and testing.
-- On the Huacalera block (Americas Petrogas -- 39% working interest and
operated by Apache), the Hua.x-1 well, which completed drilling in the
third quarter of 2011, is being prepared for a second frac in another
zone of the Vaca Muerta formation.
GrowMax Agri Corp., owned 80% by the Company, continues to advance on its potash and phosphates projects in Peru through its Peruvian subsidiary, Americas Potash Peru SA. Recently, Americas Potash Peru acquired an additional approximately 10,000 hectares of concession lands in the Sechura Desert with potential for phosphates and other minerals. These additional lands are located directly North of lands recently acquired by Vale SA. Separately from these newly-acquired lands, in 2011, Vale SA, in joint venture with Mitsui & Co. and Mosaic Company, put into production a 3.9 million tonne (capacity) per year surface phosphate mine nearby Americas Potash Peru's concessions. Golder Associates Ltd. in Peru has been engaged to assist Americas Potash Peru towards completion of a resources report for phosphates.
Ercosplan, Americas Potash Peru's consultant responsible for completing a Potash resources report, continues to advance and expects completion of the report before the end of 2012.
Mr. Barclay Hambrook, President and CEO of Americas Petrogas said, "We continue to execute on our immediate, medium-term and long-term plans to grow our oil production, reserves and resources, de-risk our shale oil and gas blocks as well as adding value to our potash and phosphate projects in Peru."
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, Apache and Gran Tierra Energy, 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) contained herein regarding future production levels, the ability to complete construction of production and processing facilities in a timely fashion or at all, plans for drilling, testing, completing and fracing unconventional wells and the ability to commercially produce hydrocarbons therefrom and the completion or timing of reports for potash and phosphates should all be viewed as forward-looking statements.
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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Americas Petrogas Inc.
Barclay Hambrook, P. Eng., MBA
President and CEO