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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".
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
Ian Habke, Chief Financial Officer
Main Phone: (403) 263-6738