CALGARY, June 1 /CNW/ - Americas Petrogas Inc. ("Americas Petrogas" or "Company") (TSX VENTURE:BOE) is pleased to announce recent developments on the 253,000 acre (approximately 1,025 square kilometers) Vaca Mahuida block in Argentina. Americas Petrogas has a 25% interest in the block which is in close proximity to the Company's Medanito Sur project where the Company has made four (4) oil discoveries and started production, as previously announced.
Over the past four months, Americas Petrogas, along with its joint venture partners, has participated in the drilling of five exploration wells, the locations of which were selected by the technical teams of Americas Petrogas and its partners.
All five wells have encountered hydrocarbons in at least one of the Centenario, Loma Montosa, Sierras Blancas, Punta Rosada and Pre-Cuyo Formations. This has validated the Company's geological model through the confirmation of both hydrocarbon migration and trapping in the Vaca Mahuida block. Results to date for these wells are as follows:
1. VM.x-2014 well - completed as a natural gas well; tested
approximately 1.0 million cubic feet per day (MMcf/d) of dry gas from
the Centenario formation.
2. Los Fenicios - LFe.x-1 well - tested 80 barrels of crude oil per day
and 1.5 MMcf/d of dry gas from the Centenario - with the Sierras
Blancas to be further evaluated at a later date.
3. Los Griegos - LG.x-1 well - tested 1.45 MMcf/d of dry gas from the
Centenario; 2.2 MMcf/d of dry gas from the Loma Montosa; and
1.5 MMcf/d of dry gas from the Sierras Blancas.
There are two additional wells awaiting evaluation:
4. Pampas - Pa.x-1 well - to be evaluated by testing after encountering
hydrocarbon shows while drilling.
5. Yaganes - YA.x-1 well - nearing total depth with numerous hydrocarbon
shows to be evaluated.
The full impact of the program and the follow up drilling opportunities will be evaluated and assessed once all testing is completed. Americas Petrogas is optimistic about the possibility of a multi-well follow-up drilling program on certain of these areas and about the possibility of securing higher prices under "Gas Plus" and "Oil Plus" (government incentives) for much of the new hydrocarbons to be produced from the discoveries.
The 100% success, so far, on Vaca Mahuida complements Americas Petrogas' earlier finds and successes on Medanito Sur where light sweet crude oil was found in similar formations and which acted as the catalyst for the drilling locations on Vaca Mahuida. Americas Petrogas' technical team had contemplated the possible continuation of the Medanito Sur play concepts into Vaca Mahuida and this recent drilling success is starting to confirm it.
Speaking about these recent developments, Mr. Güimar Vaca Coca, Americas Petrogas Argentina S.A.'s Managing Director, said "These drilling results represent a significant expansion of Americas Petrogas' success in the northeast platform of the Neuquen Basin. These multiple pay zones indicate attractive commercial potential for both oil and gas accumulations."
Mr. Vaca Coca went on to say, "The experience of our technical team in the Neuquen Basin and in the region contributed to these successes and we congratulate all of our personnel for their efforts along with the efforts of our partners' qualified technical personnel."
About Americas Petrogas Inc.
Americas Petrogas Inc. is a Canadian company whose shares trade on the TSX Venture Exchange under the symbol "BOE". The Company has oil and gas exploration, development and production activities and holds over 1,808,000 acres of land in Argentina's most prolific Neuquen Basin. In Peru, through GrowMax, a subsidiary of Americas Petrogas, the Company is developing a surface potash (and other minerals) brine reservoir and evaporite deposit at Bayovar in the Sechura Desert of Northwest Peru. Management, along with its partner/investor IFFCO, intends to build GrowMax into a potash and specialty fertilizers company.
Certain statements in this Press Release constitute forward-looking statements under applicable securities legislation. Such forward-looking statements, such as comments related to the expectation of earning a farm-in interest, the potential of the Vaca Mahuida block, the expectation of obtaining Oil Plus and Gas Plus benefits, and the possibility of multiple pay zones involve 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. This forward-looking information is subject to known and unknown risks and uncertainties and other factors, which may cause actual results, levels and timing of activity and achievements to differ materially from those expressed or implied by such information.
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.
SOURCE AMERICAS PETROGAS INC.
For further information: For further information: Americas Petrogas Inc., Barclay Hambrook, P. Eng., MBA, President and CEO, (403) 685-1888, firstname.lastname@example.org, www.americaspetrogas.com