CALGARY, ALBERTA--(Marketwire - July 9, 2012) - Americas Petrogas (TSX VENTURE:BOE) ("Americas Petrogas" or the "Company") is pleased to announce that the La Hoya.x-1 (LHo.x-1) well, which is the first Vaca Muerta Shale vertical exploration well drilled in the Totoral block, has been cased and cemented. A full suite of logs and both conventional cores as well as sidewall cores have been acquired. Production casing has been successfully set to a total depth of approximately 6,463 feet. The well penetrated 666 feet of the primary target Vaca Muerta Formation with oil and gas shows through the whole shale column. Hydrocarbon shows were also encountered and data acquired in the Mulichinco (299 feet thick), Quintuco (2,172 feet thick), and Quebrada del Sapo (190 feet thick) formations.
The Company has begun detailed analysis of the cores and cuttings at international service company laboratories in Argentina. This is expected to significantly reduce the time required to identify fracing and testing options for shale oil or shale gas reservoirs, as well as other identified targets.
The Totoral block, of which Americas Petrogas is the Operator and holds a 90% working interest, is approximately 264,240 net acres (1,069 square kilometers or 413 sections net) and is adjacent to two other Americas Petrogas Operated blocks, Yerba Buena (311,310 acres or 1,259 square kilometers or 486 sections net) and Bajada Colorada (438,390 acres or 1,774 square kilometers or 685 sections net), which are also held 90% by the Company. All three blocks are located in the southern region of the Neuquen Basin of Argentina. Gas y Petroleo del Neuquen holds the remaining 10% interest in the three blocks.
Mr. Barclay Hambrook, President and CEO of Americas Petrogas said, "We are very excited about the oil and gas shows on this new play in the southern region of the Neuquen Basin. This well represents a major step towards de-risking a large area and adds significant value to our shale block portfolio. The drilling, casing and cementing of this well were conducted in a very efficient and timely basis. This is a result of our experienced and expanding technical team in Argentina whom we congratulate."
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) 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 LHo.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 hydrocarbon shows is 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 Totoral, Yerba Buena and/or Bajada Colorada 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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