ARPETROL LTD. ANNOUNCES TEN YEAR CONCESSION EXTENSION

/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES./

CALGARY, June 29, 2011 /CNW/ - ArPetrol Ltd. ("ArPetrol" or the "Corporation") (TSXV: RPT) is pleased to announce that it has, through its wholly-owned subsidiary ArPetrol Argentina S.A., entered into an extension agreement with the Province of Santa Cruz extending the original term of its 34,000 acre (136 km2) "CA-11 Faro Virgenes" Exploitation Concession in Argentina for an additional ten years to August 31, 2026.

ArPetrol will: (i) pay a total bonus of approximately US$0.5 million to the Province of Santa Cruz; (ii) increase the provincial royalty from 12% to 15%; and (iii) invest a minimum of US$2.2 million for development works, US$6.9 million in operating expenses and up to US$5.0 million in exploration from 2011 until 2026.

On completion of its business combination with ArPetrol Inc. on March 18, 2011, the Corporation had approximately CDN$40 million of working capital which it anticipates will be sufficient to fund its current development and exploration programs for the next 24 months.

"We are extremely pleased with the progress that has been made towards delivering our objectives. The agreement reached with the Province of Santa Cruz provides us with the required time horizon to create maximum value from our exploration and development programs for the area," said Tim Thomas, President and CEO of ArPetrol.

ArPetrol is scheduled to release its first quarter 2011 financial and operating results prior to market opening on Thursday, June 30, 2011.

About ArPetrol Ltd.

The Corporation is a Calgary based public company currently engaged in oil and gas exploration, development and production in Argentina.  The Corporation's Common Shares are listed on the TSX Venture Exchange under the symbol "RPT".

Reader Advisory

Except for statements of historical fact, this news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "should", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. In particular, forward-looking information in this news release includes, but is not limited to, statements with respect to the Corporation's development and exploration plans and funding therefor.  Although we believe that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. We cannot guarantee future results, performance or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information.

Forward-looking information is based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking information. Some of the risks and other factors that could cause the results to differ materially from those expressed in the forward-looking information include, but are not limited to: general economic conditions; industry conditions, including fluctuations in the prices of oil and natural gas; unanticipated operating events or performance which can reduce production or cause production to be shut in or delayed; competition for and/or inability to retain drilling rigs and other services; competition for, among other things, capital, acquisitions of reserves, undeveloped lands, skilled personnel and supplies; geological, technical, drilling, processing and transportation problems; changes in tax laws and incentive programs relating to the oil and gas industry; the ability of the Corporation to successfully manage the political and economic risks inherent in pursuing oil and gas opportunities in foreign countries; and the ability of the Corporation to successfully market its oil and natural gas products. Readers are cautioned that this list of risk factors should not be construed as exhaustive. 

The forward-looking information contained in this news release is expressly qualified by this cautionary statement. We undertake no duty to update any of the forward-looking information to conform such information to actual results or to changes in our expectations except as otherwise required by applicable securities legislation. Readers are cautioned not to place undue reliance on forward-looking 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 this release.

SOURCE ArPetrol Ltd.

For further information:

Tim Thomas, President and Chief Executive Officer
t.thomas@arpetrol.com

or

Ian Habke, Chief Financial Officer
i.habke@arpetrol.com

ArPetrol Ltd.
Main Phone: (403) 263-6738

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