Petroamerica Provides update on Suroco Arrangement

CALGARY, June 10, 2014 /CNW/ - Petroamerica Oil Corp. ("Petroamerica") (TSX-V:PTA) acknowledges that it is aware of the June 9, 2014 press release of an affiliate of VETRA Holding S.a.r.l. ("Vetra") wherein Vetra announced an offer to acquire the issued and outstanding common shares of Suroco Energy Inc. ("Suroco") for $0.60 per share payable in cash.

Petroamerica continues to remain committed to completing the Arrangement (as defined below) in the manner as set forth in Suroco's Information Circular and Proxy Statement dated May 27, 2014 that was sent to Suroco shareholders in respect of the June 25, 2014 Suroco shareholder meeting to approve the Arrangement.

The Arrangement is an opportunity for both Petroamerica and Suroco shareholders to participate in the continued growth of the combined businesses.

There are numerous inaccuracies and misleading statements in Vetra's press release that Petroamerica intends to address in the coming days by way of a more detailed response after reviewing Vetra's information circular in detail.

As announced on April 28, 2014, Petroamerica has agreed with Suroco to acquire all of Suroco's issued and outstanding common shares by way of a statutory plan of arrangement under the Business Corporations Act (Alberta) (the "Arrangement"). Pursuant to the terms of the agreement, holders of common shares of Suroco will receive 1.7627 common shares of Petroamerica for each common share of Suroco held.  Shareholders of Suroco are urged to carefully review the  Information Circular and Proxy Statement dated May 27, 2014 that has been sent to Suroco shareholders and can be found on Suroco's profile on SEDAR at www.sedar.com. The Information Circular and Proxy Statement provides a detailed description of the Arrangement, as well as detailed information regarding Suroco and Petroamerica.

Forward Looking Statements:

This news release includes information that constitutes "forward-looking information" or "forward-looking statements". More particularly, this news release contains statements concerning expectations regarding the timing and successful completion of the Arrangement, the timing of Petroamerica's response respecting Vetra's offer and other statements, expectations, beliefs, goals, objectives assumptions and information about possible future events, conditions, results of operations or performance.  Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur.  By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, estimates, forecasts, projections and other forward-looking statements will not occur, which may cause actual performance and results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements.

Material risk factors include, but are not limited to: the inability to obtain regulatory approval for any operational activities, inability to get all necessary approvals for completion of the Arrangement, the risks of the oil and gas industry in general, such as operational risks in exploring for, developing and producing crude oil and natural gas, market demand and unpredictable shortages of equipment and/or labour; potential delays or changes in plans with respect to exploration or development projects or capital expenditures; fluctuations in oil and gas prices, foreign currency exchange rates and interest rates, and reliance on industry partners and other factors, many of which are beyond the control of Petroamerica and SurocoYou can find an additional discussion of those assumptions, risks and uncertainties in Petroamerica's and Suroco's Canadian securities filings.

Neither Petroamerica nor any of its subsidiaries nor any of its officers, directors or employees guarantees that the assumptions underlying such forward-looking statements are free from errors nor do any of the foregoing accept any responsibility for the future accuracy of the opinions expressed in this document or the actual occurrence of the forecasted developments.

The TSX Venture Exchange Inc. has in no way passed upon the merits of the proposed Arrangement and has neither approved nor disapproved the contents of this press release. 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 this release.

SOURCE Petroamerica Oil Corp.

For further information: Nelson Navarrete, President and CEO; Colin Wagner, CFO; Ralph Gillcrist, COO, Executive Vice President; Tel Bogota, Colombia: +57-1-744-0644, Tel Calgary, Canada: +1-403-237-8300, Email: investorrelations@pta-oil.com, Web Page: www.PetroamericaOilCorp.com