Petroamerica Announces a New Oil Discovery in the Une Formation and Successful Appraisal of the Las Maracas Field Extension with its Las Maracas-6 Well

CALGARY, Jan. 2, 2013 /CNW/ - Petroamerica Oil Corp. (TSX-V:PTA) ("Petroamerica" or the "Company"), a junior oil and gas company operating in Colombia is pleased to announce the results of its Las Maracas-6 well (the "well") drilled on the Las Maracas Field in the Llanos Basin of Colombia. The well has successfully tested 29 degree API oil from a new reservoir interval, the Une Formation, at rates of approximately 600 barrels of oil per day ("bopd"). The Las Maracas Field has now produced oil from three different reservoir intervals, the Mirador, Gacheta and Une Formations. The well has been completed with an electro-submersible pump and is now producing from the main middle Gacheta sand interval at a rate of approximately 1,850 bopd under natural flow and less than 0.5% water cut.

In terms of potential net pay thickness, this is the best well yet to be drilled on the Las Maracas Field. The petrophysical evaluation of the wireline logs indicates a total net oil pay of approximately 100 feet (measured depth or "MD"). Of this total amount, 25 feet (MD) are in the Mirador Formation, 53 feet (MD) in the producing middle Gacheta sand, 10.5 feet (MD) in the lower Gacheta and 11.5 feet in the Une Formation.

A flow test was conducted over the Une for a 15-hour period with the choke fully open. The Une interval produced light oil (29 degree API) under natural flow from a 4-foot perforated interval, at a stabilized rate of approximately 600 bopd and 1.5% water-cut at the end of the test. The average oil rate following fluid unloading was 642 bopd, with short-term peaks reaching more than 700 bopd.

The rig has now been skidded and is currently drilling the Las Maracas-7 well from the same surface location. Given the encouraging results coming from Las Maracas-6, Las Maracas-7 will continue to appraise the southern extension of the Las Maracas Field and is expected to be followed immediately thereafter by a water disposal well. At January 1, 2013, Las Maracas-7 had reached 12,195 feet (MD).

Petroamerica holds a 50% participating interest in the Los Ocarros Block where the Las Maracas Field is located.

As of December 29, 2012, with the addition of production coming from Las Maracas-6 well, the Company was producing 4,801 bopd total Company working interest or 4,396 bopd net after royalty.  Up to December 29, 2012, the average production for the month of December, 2012 was 4,087 bopd total Company working interest or 3,746 bopd net after royalty.

About Petroamerica:

Petroamerica Oil Corp. is a junior oil and gas exploration and production company with activities in Colombia. Petroamerica produces over 4,000 barrels of oil per day (Company gross) from two oil discoveries, has one new discovery under appraisal and has interests in seven exploration blocks, all located in Colombia's Llanos Basin. Petroamerica's shares are listed on the TSX Venture Exchange under the symbol "PTA".

Forward-Looking Statement

This news release includes forward-looking statements related to the expected occurrences in relation to the properties and drilling activities identified. A multitude of factors can cause actual events to differ significantly from any anticipated development and although Petroamerica believes that the expectations represented by such forward-looking statements are reasonable; there can be no assurance that such expectations will be realized.  These forward looking statements are based upon assumptions that Petroamerica has made concerning the oil and gas industry in Colombia, the reliability of available data regarding the properties, and the continuing market for oil and gas.  Risk factors may include the uncertainty of conducting operations under a foreign regime, the availability of labour and equipment, the fluctuating price of oil and gas, and Petroamerica's dependence upon other participants in the property areas.  Neither Petroamerica nor any of its subsidiaries nor any of its officers 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.

Although the Company believes that the expectations represented by the forward-looking statements contained herein 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. 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.

Data obtained from the initial testing results at the Las Maracas-3 well, including barrels of oil produced and levels of water-cut, should be considered to be preliminary until a further and detailed analysis or interpretation has been done on such data. The test results obtained from the well identified in this press release are not necessarily indicative of long-term performance or of ultimate recovery. The reader is cautioned not to unduly rely on such results as such results may not be indicative of future performance of the well or of expected production results for the Company in the future.

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.

Nelson Navarrete
President and CEO

Colin Wagner
CFO

Ralph Gillcrist
COO, Executive Vice President

Tel Bogota, Colombia: [phone]
Tel Calgary, Canada: [phone]
Email: [email protected]
Web Page: www.PetroamericaOilCorp.com