CALGARY, Sept. 27, 2011 /CNW/ - Petroamerica Oil Corp. (TSXV: PTA)
("Petroamerica" or the "Company") announces that it has made a number
of adjustments to its exploration portfolio in Colombia. These include
increasing the Company's final participating interest in the El Eden
block from 25% to 40% and withdrawing from the El Sancy block.
Petroamerica's final participating interest share in the El Eden block
followed a two-step process.
The Company will increase its participating interest share of the El
Eden block from 25% to 75%. The additional 50% participating interest,
formerly held by another party that is in the process of withdrawing
from the block, is derived from an incremental participation agreement
(the "Agreement") signed with Talisman Oil & Gas Colombia
("Talisman"). The transfer to Petroamerica of its initial 25%
participating interest (announced January 4, 2011), the withdrawal of
the other party and the subsequent transfer of the incremental 50%
participating interest to Talisman and then to Petroamerica, are all subject to approval by the Colombian National Hydrocarbon Regulatory
Authority ("ANH"). The incremental 50% participating interest comes at
no additional cost to Petroamerica.
Petroamerica has agreed to farm out a 35% participating interest in the
El Eden block (the "Farmout"), excluding the Chiriguaro oil discovery,
to Parex Resources Colombia Ltd. Sucursal ("Parex"). Under the terms of
the Farmout, Parex will pay Petroamerica a consideration of US$ 3.5
million and will fund the first 65% of an exploratory commitment well
to be spud before June 9, 2012. The transfer of the 35% participating
interest to Parex is subject to approval by the ANH and Talisman.
Following the Agreement and the Farmout, if all the approvals are
forthcoming the participating interest breakdown for the El Eden block,
excluding the Chiriguaro oil discovery, will be Petroamerica 40%, Parex
35% and Talisman 25%. For the Chiriguaro discovery area, Petroamerica
and Talisman will each hold a 50% participating interest share.
Petroamerica has also relinquished its 50% participating interest
contractual rights to the El Sancy block at no cost to the Company.
Petroamerica is committed to optimizing its Colombian exploration
portfolio, with the objective of strengthening its balance sheet and
focusing the company on the highest potential blocks capable of
delivering near-term value.
Petroamerica is a junior oil and gas company operating in Colombia and
its shares are listed on the TSX Venture Exchange under the symbol
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
Agreement and the Farmout and its expectations regarding the results of
the operations thereof, in addition to the potential exploration and
development opportunities associated with such arrangements and
expectations regarding regulatory approval and the strategic direction
of the Company. The forward-looking statements contained in this
document, including expectations and assumptions concerning the
obtaining of the necessary regulatory approvals, including ANH
approval, and the assumptions, opinions and views of the Company or
cited from third party sources, are solely opinions and forecasts which
are uncertain and subject to risks. A multitude of factors can cause
actual events to differ significantly from any anticipated developments
and although the Company believes that the expectations represented by
such forward-looking statements are reasonable, undue reliance should
not be placed on the forward-looking statements because there can be no
assurance that such expectations will be realized. Material risk
factors include, but are not limited to: the inability to obtain
regulatory approval, including ANH approval, for the transfer of
participating, 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.
Neither the Company 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 does any of the
foregoing accept any responsibility for the future accuracy of the
opinions expressed in this document or the actual occurrence of the
The forward-looking statements contained in this document are made as of
the date hereof and the Company undertakes no obligation to update
publicly or revise any forward-looking statements or information,
whether as a result of new information, future events or otherwise,
unless so required by applicable securities laws.
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.
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