CALGARY, Jan. 11, 2012 /CNW/ - Petroamerica Oil Corp. (TSX-V: PTA) ("Petroamerica" or the "Company"), is pleased to announce that its wholly owned subsidiary; Petroamerica International Corp., has been recognized by the ANH (National Hydrocarbon Agency) as to its participating interests in the El Porton, El Eden and Los Ocarros Blocks in the Llanos basin of Colombia. In front of the ANH the Company now officially holds a 50% participating interest in the Los Ocarros block, which includes a 100% participating interest in the Las Maracas discovery subject to a potential back-in by the non-consenting party, a 25% participating interest in the El Porton Block and a 25% participating interest in the El Eden Block.
The Company subsequently farmed out half of its participating interest in the Los Ocarros block to Parex Resources Colombia Ltd. Sucursal ("Parex") who is expected to now be in a position to apply to the ANH for the recognition of its participating interest share. This transfer is subject to approval by operator of the block.
Furthermore, as announced on September 27, 2011 the Company is expected to assume, subject to ANH approval, an additional 15% participating interest in the El Eden Block, bringing its total participating interest to 40%, and will hold a 50% participating interest in the Chiriguaro oil discovery on this block. Petroamerica will acquire this additional participating interest at no cost by assuming a further 50% participating interest on the withdrawal of another party from this block and then farming out 35% participating interest, excluding the Chiriguaro oil discovery, to Parex. As a result of the transaction Parex paid US $3.5 million as a bonus and will carry the cost of an exploration well up to the 65% of its cost.
ANH's mandate is to manage Colombia's Oil & Gas resources, representing the Colombian government and its citizens when designating exploration areas.
Petroamerica is a junior oil and gas company operating in Colombia and its shares are listed on the TSX Venture Exchange under the symbol "PTA".
ON BEHALF OF PETROAMERICA OIL CORP.
President and CEO
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 the obtaining of the necessary regulatory approvals, including ANH approval, and expectations regarding the Parex farm-out are solely opinions and forecasts which are uncertain and subject to risks. 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 does 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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