CALGARY, April 17, 2012 /CNW/ - Petroamerica Oil Corp. (TSX-V: PTA) ("Petroamerica" or the "Company"), a junior oil and gas company with activities in Colombia, today announced that it has entered into a definitive agreement (the "Assignment Agreement") to acquire an additional 25% participating interest in the Los Ocarros Block (the "Block"), located in Colombia's Llanos Basin.
"Our consolidation of participating interest in the Los Ocarros Block provides Petroamerica with full rights to the exploration potential in the Block" said Nelson Navarrete, President and CEO of Petroamerica. "We believe that this new arrangement, with our partner Parex, has aligned our strategies for the Block and will accelerate both the appraisal and development of the Las Maracas discovery and the evaluation of the Block's additional potential."
Petroamerica's partner, Parex Resources Colombia Ltd. Sucursal ("Parex"), earned contractual rights for a 25% participating interest in the Block through a farm-in agreement announced on July 4, 2011. Parex recently entered into a Purchase and Sale Agreement to acquire the remaining 50% participating interest in the Block from the current operator for US$3.0 million. Petroamerica subsequently entered into an Assignment Agreement with Parex, whereby Petroamerica will purchase half of this participating interest for US$1.5 million. As a result of these transactions, Petroamerica and Parex will eventually each hold a 50% participating interest in the Block, subject to approval by the ANH ("Colombian National Hydrocarbon Agency").
In January 2012, Petroamerica announced that it's wholly owned subsidiary, Petroamerica International Corp., has been recognized by the ANH as officially holding a 50% participating interest in the Block. Parex has therefore applied to the ANH for the recognition of its participating interest share of 50% and to become the operator of the Block.
Petroamerica announced in August 2011 the Las Maracas-2 sidetrack light oil (37° API) discovery that tested rates up to 938 barrels of oil per day. Long-term testing of the discovery well and the drilling of an appraisal well are scheduled for the second quarter of 2012.
Petroamerica Oil Corp. is a junior oil and gas exploration and development company operating in Colombia. Petroamerica has interests in eight blocks, comprising a total of 1.8 million gross acres. The Company's Balay and Las Maracas oil discoveries are located in Colombia's Llanos Basin, on Petroamerica's Balay and Los Ocarros Blocks, respectively. Petroamerica's shares are listed on the TSX Venture Exchange under the symbol "PTA".
This news release includes information that constitutes "forward-looking information" or "forward-looking statements". The forward-looking statements contained in this document, including expectations and assumptions concerning expectations regarding the Assignment Agreement entered into with Parex and its expectations regarding the results of the operations thereof, in addition to the potential exploration and development opportunities associated with such agreement and applications for operatorship with the ANH. 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 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 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 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.
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