Petroamerica Tests Light Oil from its Curiara-1 Exploration Well in Colombia

CALGARY, May 23, 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 an oil discovery with its Curiara-1 well, which tested light 40^o API oil at an average rate of more than 800 barrels of oil per day ("bopd") from the Mirador Formation.

The Curiara-1 exploration well produced on test under natural flow conditions light oil (40^o API) and gas from a 5-foot perforated interval in the Mirador Formation. The average oil rate through a 20/64 inch restricted choke over a 22-hour period was 818 bopd with 3.4 MMCFD of gas. The well head flowing pressure during testing was approximately 3,300 psi and the watercut at the end of the test was less than 0.5%. During testing, a maximum oil rate of more than 1,200 bopd was observed and by the end of the test, the stabilized oil rate was 964 bopd. Logs indicate 8 feet of net pay and a possible gross hydrocarbon column of 50 feet in the Mirador Formation at the well. The well is currently shut-in for a pressure build-up and further evaluation. For operational reasons, the well was terminated in the Los Cuervos Formation and did not evaluate the deeper reservoir objectives of the Gacheta and Une Formations.

The Curiara-1 well is situated in the Llanos Basin of Colombia on the El Porton Block, where Petroamerica holds a 25% non-operated working interest.

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 well identified in this press release, 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 well test results obtained and disclosed 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