TSXV - PTA
VANCOUVER, Jan. 8 /CNW/ - Petroamerica Oil Corp. (the "Company") announces that it, through its wholly-owned Panamanian subsidiary, Petroamerica International Corp., has entered into a formal farm-in agreement (the "Agreement") with Petrobras Colombia Limited on the Balay Block which is located in the Llanos Basin of Colombia.
Pursuant to the Agreement, and subject to the previous and written approvals of the National Hydrocarbon Agency ("ANH") and the other Party on the Balay Block, to earn 15% in the Balay Block, the Company will pay 25% of the first well, Balay-1 (the "First Well"), and 15% in back costs for a recently acquired 3D seismic program ("Seismic"). The First Well was spud on November 28, 2009 and is expected to reach total depth in February 2010.
The Balay Block lies to the north east of the Corcel Block and recent discoveries located in the Llanos Basin of Colombia.
The Board of Directors of the Company have appointed Mr. Paul Kroshko as President and Chief Executive Officer and elected Mr. Jeff Boyce as Chairman of the Board.
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.
Advisory Regarding Forward-Looking Information
This press release contains forward-looking information within the meaning of applicable securities laws. The use of any of the words "intend", "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information.
This press release contains forward-looking information concerning the anticipated total cost to the Company for the First Well and Seismic relating to the Balay Block and the expected date to reach total depth for the First Well. The Company has provided this forward-looking information in reliance on certain assumptions that it believes are reasonable at this time, including assumptions as to the anticipated total cost for the First Well and Seismic relating to the Balay Block generally and the amount of time required to reach total depth for the First Well. The costs to the Company associated with the First Well and Seismic relating to the Balay Block and the amount of time required to reach total depth for the First Well may increase for a number of reasons, including unforeseen delays in the timing of drilling of the First Well and the completion of Seismic as well as unforeseen cost increases. Accordingly, readers should not place undue reliance on the forward-looking information contained in this press release concerning these items. Readers are cautioned that the foregoing list of factors is not exhaustive.
The forward-looking information contained in this press release is made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
SOURCE Petroamerica Oil Corp.
For further information: For further information: Mr. A. Paul Kroshko, President and Chief Executive Officer, Petroamerica Oil Corp., Tel: (403) 607-8184