Jun. 7, 2011 (Marketwire Canada) --
CALGARY, ALBERTA -- Americas Petrogas Inc. (the "Company" or "Americas Petrogas") (TSX VENTURE:BOE) announces that it has entered into agreements with Ingenieria Alpa SA ("Alpa") to acquire Alpa's 33% working interest in Los Toldos I, II, III and IV as well as Alpa's 19% working interest in Totoral, Yerba Buena and Bajada Colorada, all of which are located in the Neuquen province in Argentina. The Company has agreed to pay a total of US$4.6 million in cash for the acquisitions. Closing of the transactions is subject to receipt of all necessary regulatory, board and other approvals and is scheduled to close in July 2011.
Americas Petrogas already holds existing working interests in these same blocks and, as a result, upon closing of the transactions, Americas Petrogas will hold a 90% working interest in the Los Toldos blocks along with a 90% working interest in Totoral, Yerba Buena and Bajada Colorada. The remaining 10% working interest on these blocks is held by Gas y Petróleo of the Neuquen province.
The Company intends to embark on a drilling program on these blocks in search of both conventional and unconventional hydrocarbons.
Barclay Hambrook, President and CEO of Americas Petrogas stated, "We are pleased to acquire these additional working interests in such large blocks located in the western region of the basin, which is known for conventional hydrocarbon occurrence and unconventional hydrocarbon potential. These blocks offer significant potential for unconventional shale gas, shale oil, tight gas as well as conventional oil and gas."
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 interests in 16 blocks involving exploration, development and production. API has proven conventional oil and gas reserves, as well as an evolving unconventional resource play including shale gas, shale oil, and tight sand oil and gas in Argentina's prolific Neuquen basin. For more information about Americas Petrogas, please visit www.americaspetrogas.com.
Forward Looking Statements
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 the closing and timing of the closing of the acquisitions should be considered as forward looking statements. In addition, statements concerning the intention to pursue a drilling program for conventional and unconventional hydrocarbons 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 news 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 and if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable law.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE RELEASE.
Americas Petrogas Inc.
President & Chief Executive Officer