Petroamerica to complete $20,020,000 private placement at $0.70 per unit /
appoints new CFO



VANCOUVER, Oct. 23 /CNW/ - Petroamerica Oil Corp (the "Company") (TSXV: PTA) has reached agreement for a private placement of 28,600,000 units at $0.70 per unit for gross proceeds of $20,020,000. Each unit consists of one common share and one share purchase warrant entitling the holder to purchase an additional share at $1.25 per share for five years. A cash finders fee of 5% is payable in connection with the placement. Proceeds will be used to advance the Company's exploration programs on its hydrocarbon projects in Colombia.

The Company has appointed Colin Wagner as its new Chief Financial Officer. Since obtaining his Chartered Accountant designation in 1990, Mr. Wagner has been working primarily internationally, both in the advisory and audit role and with a number of publicly traded companies. Since 1999, he has worked in international oil and gas activities with several companies including EnCana Corporation, Talisman Energy Inc. and Sherritt International Corporation, supporting operations in Brazil, Cuba, Colombia, Australia and Norway.

The Company has granted incentive options to new officers and employees to purchase 1,120,000 shares at $0.70 per share for ten years.

The private placement and grant of options are subject to regulatory approval.

    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.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

SOURCE Petroamerica Oil Corp.

For further information: For further information: Gordon Keep, Secretary, Tel: (604) 609-6110

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