CALGARY, ALBERTA--(Marketwire - July 16, 2009) - Americas Petrogas Inc. (TSX VENTURE:BOE) (the "Company" or "Americas") is pleased to announce the formal signing and publication of the Decree incorporating Americas as partner and operator into the UTE agreement with the Government of La Pampa province (Argentina) on the Medanito Sur block along with partners Enarsa (Energia Argentina S.A.) Argentina's National Oil company, and a local private company.
As previously reported, the Medanito Sur block is 106 sq km (50,900 acres) in size and has major producing oilfields to the west (Petrobras), as well as other producing oilfields to the north and south. Americas, as operator, is entitled to receive 70% of the cash flow until recovery of capital expenditures.
Barclay Hambrook, President and CEO commented:
"This is a most important milestone in Americas Petrogas history as the Company will be establishing cash flow and first production of approximately 800 bopd of sweet light (34 degrees API) crude oil."
The Company also announces that more recent analysis and integration of well and seismic data on the Medanito Sur block has led to the identification of up to 25 additional lower risk drilling targets.
Mr. Carlos Lau, Chairman stated:
"America Petrogas is well positioned in Argentina's most prolific oil and gas basin of Neuquen (i.e. Argentina's Neuquen basin is the same oil and gas basin where Petro Andina and Repsol YPF are focused). Mr. Lau congratulated all Americas team members for advancing the Company to near production and cash flow stage and thanks all investors for continued support."
Americas Petrogas corporate strategy has included establishing a very large acreage position (approximately 2 million acres spread over 16 large blocks representing low and medium risk, high impact) in Argentina's Neuquen basin combined with the Company's ability to assemble a very experienced and proven successful Argentina Exploration and Development team. Americas team in Argentina is headed by Mr. Guimar Vaca Coca, Petroleum Engineer, who has demonstrated the ability to successfully operate in an entrepreneurial and low cost method. Additionally attractive to the Company is Argentina's favorable geology combined with attractive opportunities in large undrilled areas and good access to markets.
The Company has posted updated presentations on its Argentina oil and gas operations and its Peru brine and evaporite potash project on its website www.americaspetrogas.com.
About Americas Petrogas Inc.
Americas Petrogas is a Canadian company whose shares trade on the TSX Venture Exchange under the symbol "BOE". The Company has oil and gas exploration and development activities in Argentina and, in Peru, the Company, through its wholly owned subsidiary, Americas Potash Peru SA, is developing a surface potash brine reservoir and evaporate deposit at Bayovar in the Sechura Desert, Northwest Peru.
Except for historical information, certain statements in this Press Release constitute forward-looking statements under applicable securities legislation. Such forward-looking statements involve 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. Forward-looking statements in this press release include but are not limited to references to future development activities on Medanito Sur and other concessions. This forward-looking information is subject to known and unknown risks and uncertainties and other factors, which may cause actual results, levels and timing of activity and achievements to differ materially from those expressed or implied by such information.
FOR FURTHER INFORMATION PLEASE CONTACT:
Americas Petrogas Inc.
Barclay Hambrook, P. Eng., MBA
President and CEO
(403) 685-1880 (FAX)