Petroamerica cases Balay-1 as a potential oil well

TSXV - PTA

VANCOUVER, Feb. 17 /CNW/ - Petroamerica Oil Corp (the "Company") announces that the Balay-1 exploratory well has reached total depth and that it has been partially logged and, after positive indications while drilling and logging, the Balay-1 well is being cased to be tested.

The Company, through its wholly-owned Panamanian subsidiary, Petroamerica International Corp., is entitled, upon fulfilling its obligations in a Farmin Agreement with Petrobras Colombia Limited and the approvals from the ANH and the other partner on the Balay Block, to a 15% participating interest in the Balay Block, located in the Llanos basin in Colombia.

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.

The foregoing information may contain forward-looking information relating to the future performance of the Company. Forward looking information is subject to a number of known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated in our forward looking statements. Such risks and other factors include, among others, the actual results of drilling activities, changes in world commodity markets or equity markets, the risks of the oil and gas industry including, without limitation, those associated with the environment, delays in obtaining governmental approvals, permits or financing or in the completion of development or construction activities, title disputes, change in government and changes to regulations affecting the oil and gas industry, and other risks and uncertainties detailed from time to time in the Company's filings with the Canadian securities administrators (available at www.SEDAR.com). Forward-looking statements are made based on various assumptions and on management's beliefs, estimates and opinions on the date the statements are made. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in the forward-looking information contained herein. The Company undertakes no obligation to update forward-looking statements if these assumptions, beliefs, estimates and opinions or other circumstances should change, except as required by applicable law.

For further information: A. Paul Kroshko, President and CEO, Petroamerica Oil Corp., Tel: [phone], Email: [email protected]; or Colin Wagner, CFO, Petroamerica Oil Corp., Tel: [phone], Email: [email protected]