CALGARY, ALBERTA--(Marketwire - March 23, 2012) -
Americas Petrogas Inc. (TSX VENTURE:BOE) ("Americas Petrogas" or the "Company") is pleased to report that the first stage of completion of the Hua.x-1 well (TD 13,450 feet), located on the 250,000 acre Huacalera block in the western region of Argentina's Neuquén Basin, was initiated in mid-February by Apache Corporation, the operator of the well. The first zone of interest being tested is a select 360 foot thick interval below 12,465 feet in the Vaca Muerta Shale, which has a gross thickness of 1,742 feet in the well. The zonal selection was made based on leading edge core and integrated petrophysical analyses carried out during late 2011. The selected interval appears to hold favorable flow potential based on the analyses. The hydraulic fracture stimulation was successfully completed in late February, placing just over 300,000 lbs of proppant in the formation. The well is currently flowing gas and "load" water from the hydraulic fracture through temporary test facilities. Testing will continue for approximately 90 days, collecting valuable fluid and reservoir data in the Vaca Muerta Shale. Careful evaluation of the current interval will be important in assessing the potential of the Vaca Muerta section in order to determine next steps. In addition to the Vaca Muerta, uphole zones of interest include Quintuco and Mulichinco, to be tested at a later date.
Americas Petrogas' partners on the Huacalera block include Apache Corporation and Gas y Petroleo.
Mr. Barclay Hambrook, President and CEO of Americas Petrogas, commented, "We are very pleased to start testing of our first Huacalera shale well and we look forward to test results, in the near future, from the Vaca Muerta as well as the Quintuco and Mulichinco. During the next 12-18 months, in conjunction with our strong joint venture partners, we will continue our investment and pursue an aggressive drilling program of up to 10 additional shale wells. These wells will focus on the world class Vaca Muerta and Los Molles shale source rocks with the main goal of increasing resources on our shale blocks."
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 oil and gas 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 the shale oil and gas corridor in the Neuquen Basin, 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 successfully analyze the formations and intervals within formation or to successfully frac, complete, test and commercially produce or sell oil, gas or other hydrocarbons from the Hua.x-1 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 gas and other hydrocarbons are 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 Huacalera block or any other 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 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.
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