CALGARY, Jan. 4 /CNW/ - Petroamerica Oil Corp. ("Petroamerica" or the "Company") is pleased to announce that it has signed the definitive agreements with Talisman (Colombia) Oil & Gas Ltd. ("Talisman") to acquire participating interests in four exploration blocks in the Llanos Basin of Colombia (the "Acquisition") (reference: PTA Press Release, Oct. 26, 2010).

As per the agreements, Petroamerica will pay a total cash consideration to Talisman of US$18 million upon signature. Following payment of this cash consideration, Petroamerica will, through its wholly owned subsidiary Petroamerica International Corp., earn a 25% participating interest in the El Porton block and 50% participating interests in the Los Ocarros and El Sancy blocks. Petroamerica will earn its 25% participating interest in the El Eden block, excluding the Chiriguaro-1 discovery, after paying Talisman's 50% share to a cap of US$7.85 million to drill one exploration well at a future date.

The Los Ocarros, El Sancy, El Porton and El Eden exploration blocks occupy an area of more than 441,000 acres gross (1,785 km2) and 165,800 acres net (671 km2) in a  prospective trend containing some of the fields discovered in the Llanos Basin to date. In the El Porton block, the Calatea-1 well is currently drilling and results are expected by early 2011. All four blocks are operated by CEPSA COLOMBIA S.A.

This acquisition represents a significant milestone in terms of achieving the Company's strategy to focus its exploration efforts on the prolific Llanos Basin, and furthermore, it targets a previously identified gap in exploration drilling activity at the end of 2010 and the first half of 2011. Paul Kroshko, President and CEO commented, "This transaction is just one in a series of actions that the Company will undertake to rebalance its portfolio, in order to be better positioned to deliver to shareholders near-term value growth through the exploration drill-bit".

Transfer of rights in all four blocks is subject to approval by the Colombian National Hydrocarbon Regulatory Authority (the "ANH" or "Agencia Nacional de Hidrocarburos").

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".

Forward Looking Statements:

This news release includes information that constitutes "forward-looking information" or "forward-looking statements".  More particularly, this news release contains statements concerning the potential exploration and development opportunities associated with the Acquisition and expected results from drilling.  The forward-looking statements contained in this document, including expectations and assumptions concerning the obtaining of the necessary regulatory approvals,  assumptions, opinions and views of the Company or cited from third party sources, 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, 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 our industry partners. 

Neither the Company 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 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.

SOURCE Petroamerica Oil Corp.

For further information:

A. Paul Kroshko
President and CEO
Petroamerica Oil Corp.

Tel: 403-237-8300


Colin Wagner
Petroamerica Oil Corp.

Tel: 403-237-8300

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