CALGARY, ALBERTA, Jul. 20, 2010 (Marketwire) -- Americas Petrogas Inc. ("Americas Petrogas") (TSX VENTURE:BOE) is pleased to announce that its wholly owned subsidiary, Americas Petrogas Argentina S.A., has finished the drilling and testing of the well Ayelen x-1. This is the 5th exploration well on its Medanito Sur block, in the Neuquen Basin of Argentina, and the fifth discovery.
The well is located approximately 3.5 km to the east of the El Calden field, discovered by Americas Petrogas in 2009, and drilled a completely independent trap. It tested light sweet crude oil from two zones: the Pre-Cuyano and the Loma Montosa, extending significantly the high potential towards the east of this 106 square kilometer block. The well tested 51 bopd, 92% oil and 400,000 cu.ft.gas pd (40 boepd), by natural flow on a 12 mm choke from the Loma Montosa formation. It also tested 30 bopd, 22% oil by swabbing from the Pre-Cuyano formation. This is the first hydrocarbon discovery from the Loma Montosa Formation in the block.
Commenting on this new oil discovery, Mr. Guimar Vaca Coca, Americas Petrogas Argentina S.A.'s Managing Director, stated, "The Ayelen x-1 well tested oil and gas at modest rates, however the discovery of hydrocarbons in the 5th Exploratory well drilled, making five consecutive discoveries, highlights the potential of the block and the unique expertise of the Technical and Management team. This success rate is above the industry standards, so I would like to make special acknowledgement and offer congratulations to all members of our team."
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 oil and gas exploration, development and production activities and holds over 1,808,000 acres of land in Argentina's most prolific Neuquen Basin. In Peru, through GrowMax Agri Corp., Americas Petrogas is developing a surface potash (and other minerals) brine reservoir and evaporite deposit at Bayovar in the Sechura Desert of Northwest Peru. Management, along with its partner/investor IFFCO, intends to build GrowMax into a potash and specialty fertilizers company.
Certain statements in this Press Release constitute forward-looking statements under applicable securities legislation. Such forward-looking statements, such as the high potential of the block and the intention to develop a surface potash (and other minerals) brine reservoir and evaporite deposit at Bayovar, 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. 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.
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