Americas Petrogas, Gran Tierra Hit Oil Pay in Argentina

- Americas Petrogas, Gran Tierra Hit Oil Pay in Argentina

Monday, September 12, 2011
Americas Petrogas

Americas Petrogas announced Monday that it, along with its co-venturer, Gran Tierra Energy, have made a new significant discovery of oil (1,023 barrels of oil equivalent per day) in the 1st of the three exploration wells on the Rinconada Norte block located in the Neuquen Basin of Argentina (Americas Petrogas Argentina S.A. is operator).

The RN x-1004 well flowed a total combined test rate of approximately 944 barrels (150 m3) per day of oil and 13,360 m3 per day of gas (79 barrels of oil equivalent per day) for a total of approximately 1,023 barrels of oil equivalent per day from two intervals tested separately in the Precuyo formation. This well also flowed 43 barrels (5 m3) per day of water or a 4% water cut.

From the depths of the zones tested (982-992 meters and 1022-1032 meters) and electric logs information, the Company estimates an oil column thickness of approximately 60 meters or 197 feet. The oil is 29.6 degrees API, sweet light crude similar to crude oil produced from the equivalent formation in Americas Petrogas' Medanito Sur block. This well has been completed and the service rig will now move on to the next two wells, which have already been drilled, logged and production casing has been installed. Americas Petrogas' wholly-owned Argentina subsidiary, Americas Petrogas Argentina S.A., is the operator of the Rinconada Norte block, holding a 65% working interest, while Gran Tierra Energy, through its Argentina subsidiary, holds a 35% working interest.

Commenting on this most recent discovery, Guimar Vaca Coca, Managing Director of Americas Petrogas Argentina S.A., stated, "We are very excited about this new find on the first well of this three-well exploratory drilling program because of the strong production rates and possibility of significant commercial reserves. We are also optimistic about the prospects for the remaining two wells."

The Rinconada Norte block is currently under an Exploitation concession, which will allow Americas Petrogas and Gran Tierra Energy, with previous approvals from the authorities, to move ahead with development activities in the near term. The Company anticipates building test production facilities in the fourth quarter of 2011. This drilling program on Rinconada Norte represents the initial phase of Americas Petrogas' previously-announced drilling plans for 2011-2012 (see press release of June 3, 2011).

The Rinconada Norte block (approximately 96 sq.km or 37 sections) is located immediately south of and adjoins Americas Petrogas' Medanito Sur block in La Pampa Province in the eastern region of the Neuquen Basin of Argentina.

Barclay Hambrook, President & CEO of Americas Petrogas, stated, "We are very pleased with this discovery and Americas Petrogas is well-funded to accelerate and expand its planned capex program in order to increase production and reserves."

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ExxonMobil, Americas Petrogas to Explore Argentina Shale

- ExxonMobil, Americas Petrogas to Explore Argentina Shale

Tuesday, August 30, 2011
Americas Petrogas

Americas Petrogas, a Canadian company, is pleased to announce that it has, through its wholly-owned Argentina subsidiary, Americas Petrogas Argentina S.A., entered into a farm-out agreement (FOA) with ExxonMobil Exploration Argentina S.R.L., a wholly-owned subsidiary of Exxon Mobil Corporation for the exploration and potential exploitation of Americas Petrogas's Los Toldos blocks (163,500 gross acres or 255 sections or 660 square kilometers) located in Neuquen, Argentina. The Los Toldos blocks are located in the western region of the Neuquen Basin and are in a favorable location relative to other recent discoveries of shale oil and shale gas in the Vaca Muerta formation.

Barclay Hambrook, President and CEO of Americas Petrogas, stated "As the world's largest publicly-owned integrated oil and gas company, ExxonMobil brings vast experience, technology, research and financial resources to this joint venture with Americas Petrogas."

Pursuant to the terms of the FOA, ExxonMobil has committed to fund US$53.9 million (including taxes) during the exploration phase with a further US$22.4 million (including taxes) if the parties proceed to the exploitation phase, for a total potential initial investment of US$76.3 million. This focus of exploration, exploitation and other related activities is expected to be directed towards the Los Toldos 1 and 2 blocks. ExxonMobil will earn a 45% interest in the Los Toldos blocks with Americas Petrogas retaining a 45% interest and the government entity, Gas y Petroleo del Neuquen ("G&P"), maintaining a 10% interest. ExxonMobil will also provide technical assistance on the Los Toldos blocks. The FOA is subject to approval by G&P.

Americas Petrogas is the operator of the Los Toldos blocks and expects to spud the first well in the fourth quarter of 2011 with the primary target being the unconventional Vaca Muerta formation and potential secondary targets in other conventional and unconventional formations.

In addition to the Los Toldos blocks, Americas Petrogas has five other blocks within the Neuquen Basin's western shale corridor, including the Huacalera block which is located south of the Los Toldos blocks and which was recently drilled, cased and cemented, having intersected 1,742 feet of Vaca Muerta shale. In published reports, the U.S. Energy Information Administration has cited a risked, recoverable resource of 240 trillion cubic feet ("TCF") of gas for the Vaca Muerta shale in the Neuquen Basin.

Mr. Guimar Vaca Coca, Managing Director of Americas Petrogas' Argentina subsidiary, said, "We believe the next major shale development outside of North America will be in the Neuquen Basin. Our Argentina management and technical personnel look forward to working with ExxonMobil to explore the substantial hydrocarbon potential of the Los Toldos blocks."

Daniel De Nigris, General Manager of ExxonMobil Exploration Argentina, said, "We are pleased to be working with Americas Petrogas on the highly prospective Los Toldos blocks and if successful, look forward to providing clean and reliable energy for Argentina."

About Americas Petrogas Inc.

Americas Petrogas Inc. is a Canadian company whose shares trade on the TSX Venture Exchange under the symbol "BOE". Americas Petrogas has oil and gas interests in numerous blocks involving exploration, development and production. Americas Petrogas has proven conventional oil and gas reserves, as well as evolving unconventional resource plays including shale gas, shale oil, and tight sand oil and gas in Argentina's prolific Neuquen Basin. For more information about Americas Petrogas, please visit www.americaspetrogas.com

About Vaca Muerta Shales

The Vaca Muerta Shale is one of two principal source rocks in the Neuquen Basin of Argentina. The shale is late Jurassic-early Cretaceous in age, covers an area of approximately 8,500 square miles, varies in depth between 5,500 to 14,000 feet and in places is up to 2,000 feet in thickness.

The Vaca Muerta characteristics are believed to be similar to shale reservoirs such as the Eagle Ford, Haynesville and Horn River in North America which have so far resulted in discoveries of both shale gas and shale oil. The shale has recently become the focus for many of the important shale gas players in North America, including Apache, ExxonMobil, Total as well as YPF in Argentina.

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Crown Point Cases 5th Consecutive Argentina Oil Well

- Crown Point Cases 5th Consecutive Argentina Oil Well

Tuesday, August 23, 2011
Crown Point Ventures Ltd.

Crown Point Ventures has drilled and cased the fifth well of the current drilling program as a potential multi zone oil well. The Company also reports a successful work over of EV 19 which is one of the first wells drilled by Crown Point in Argentina.

Drilling Update

EV 27

Crown Point announced that the EV 27 well, the fifth well of the 2011 drilling program, has been logged and cased as a potential multi zone oil well. Logs and samples taken while drilling indicate a total of 23 net meters of potential pay in the Canadon Seco and the Mina el Carmen Formations. Later this week, the completion rig will be moving to the EV 27 location to commence its completion program.

The drilling rig is now moving to a new location EV 30. This will be the first well drilled by Crown Point on the northern side of the El Valle field. The primary target of this well is the historically prolific Caleta Olivia zone.

Completion Update

EV 19

Crown Point re-completed a 3 meter thick zone in the Caleta Olivia in the EV 19 which was originally drilled in 2009. After the re-completion of the EV 19 Caleta Olivia zone it swab tested oil with an oil cut of 70% giving an extrapolated oil production rate of 190 bbls. of oil per day ("BOPD"). Prior to the work over, the well was producing a trace of oil from the Canadon Seco with a 99 per cent water cut.

Drilling Plans 2011-2012

This drilling program is part of a larger 20-25 well program to be conducted at El Valle over the next 24 months. Crown Point is planning to drill two to four more wells at El Valle prior to year end. At Canadon Ramirez the Company plans to drill 2-5 wells on its 100% interest exploitation concession over the next 12 months and one 50% interest well at Laguna de Piedra in the first or second quarter of 2012. At Cerro Los Leones Crown Point anticipates receiving the required environmental permits in the near term and plans to commence the shooting of the 3-D and 2-D programs shortly after receiving these permits. The completion and interpretation of the seismic program is expected to be followed by a 2-5 well 50% interest program in 2012.

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Halliburton Wraps Up 1st HZ Shale Well in Argentina for Apache

- Halliburton Wraps Up 1st HZ Shale Well in Argentina for Apache

Thursday, August 18, 2011
Halliburton Co.

Halliburton has successfully executed the first horizontal, multistage hydraulic fracture shale gas completion in Argentina's Neuquén Basin for Apache. Halliburton provided all major well construction and completion services for the project, resulting in the successful delivery of South America's first horizontal and deepest shale gas well.

As global development of unconventional resources materialize, Halliburton is in the process of pre-positioning Unconventional Reservoir Solutions Teams around the world. These teams draw upon the extensive knowledge and experience garnered from Halliburton's unrivalled position in North America's unconventional reservoir development. Halliburton, chosen by Apache because of its Buenos Aires-based Unconventional Reservoir Solutions Team's expertise and understanding of the specific complexities of the Los Molles shale formation, placed 10 hydraulic fracture stages in the horizontal section at a depth of over 4,400 meters.

"Halliburton's ability to apply its expertise globally will assist operators to efficiently develop frontier unconventional reservoirs," said Roberto Munoz, vice president, Latin America Region, Halliburton. "With the third largest estimated unconventional reserves after China and the United States, Argentina's shale gas potential will benefit greatly from the application of these technologies."

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Crown Point Flows Oil at Argentina Well

- Crown Point Flows Oil at Argentina Well

Thursday, August 11, 2011
Crown Point Ventures Ltd.

Crown Point has successfully completed EV 31 which is the fourth well of the 2011 drilling as a successful flowing oil well. To date this year, the Company has drilled, cased and completed four wells as successful oil wells at the El Valle field in the San Jorge Basin in Southern Argentina. Since commencing drilling operations at El Valle, the Company has drilled and completed ten wells with a 100% drilling and completion success rate.

The completion rig will be moving later this week to commence a work over operation on an EV 19 which was one of the first wells drilled by Crown Point at El Valle. Once that work over has been completed we expect to start completion operations on EV 27 which is currently drilling and is the fifth well of the current drilling program.

Completion Update: EV 31

Crown Point successfully completed a 4.0 meter thick section of the Canadon Seco formation in the EV 31 wellbore. This zone was perforated and fracture stimulated. The well during its evaluation period flowed oil through a 20 mm choke at a 24 hour extrapolated rate of 370 barrels per day of 100% oil.

Due to the excellent production test results obtained from the currently completed 4.0 meter Canadon Seco zone in EV 31, the Company has indefinitely deferred the completion of two additional highly prospective zones in the Canadon Seco.

Drilling Plans 2011-2012

This drilling program is part of a larger 20-25 well program to be conducted at El Valle over the next 24 months. Crown Point is planning to drill two to four more wells at El Valle prior to year end. At Canadon Ramirez the Company plans to drill 2-5 wells on its 100% interest exploitation concession over the next 12 months and one 50% interest well at Laguna de Piedra in the first or second quarter of 2012. At Cerro Los Leones Crown Point anticipates receiving the required environmental permits in the near term and plans to commence the shooting of the 3-D and 2-D programs shortly after receiving these permits. The completion and interpretation of the seismic program is expected to be followed by a 2-5 well 50% interest program in 2012.

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Argentina Suspends Auction for Offshore Blocks

- Argentina Suspends Auction for Offshore Blocks

Tuesday, August 09, 2011
Dow Jones Newswires
BUENOS AIRES
by Taos Turner

Adverse market conditions have led Argentina's state-run energy company Enarsa to suspend plans to auction oil exploration rights at 32 offshore blocks.

"The international context is not very good. It's not a good time to be doing this," a person familiar with Enarsa's plans said Monday. He added that the company remains interested in exploring those areas.

Enarsa planned to begin auctioning the blocks this week to foment offshore oil and gas exploration.

Enarsa will continue evaluating the market and will resume the auction process once conditions are more favorable, the person said.

The blocks are located in the Atlantic Ocean near Argentina's Patagonia and include areas such as the Valdes Peninsula, San Jorge, and Malvinas, among others.

It's unclear how much interest exists in the blocks, though Enarsa already has signed agreements with Petrobras Argentina and YPF to look for and develop resources in the region.

Argentina has been struggling to find new sources of energy as its oil and gas reserves decline.

Oil production fell 18% between 2003 and 2010 to about 34 million cubic meters, according to a document published in March by eight former energy secretaries. The document, which cites Energy Secretariat data, said proven oil reserves fell 11% to 393 million cubic meters during that period. It also said natural gas production fell 43% to 379 billion cubic meters in 2010, while reserves fell 8% to about 47 billion cubic meters.

The former officials, who have criticized current energy policies, said the decline in oil production coincided with a substantial increase in international oil prices, which should have led to increased exploration and production in Argentina.

But that didn't happen, they said, because of ongoing government price caps that have crimped profits and discouraged investment in exploration.

Copyright (c) 2011 Dow Jones & Company, Inc.

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Apache Argentina Reaches TD at Huacalera Shale Well

- Apache Argentina Reaches TD at Huacalera Shale Well

Tuesday, August 02, 2011
Americas Petrogas Inc.

Americas Petrogas announced that the Hua.x-1 well on the Company's Huacalera Block, operated by the Company's joint venture partner, Apache Argentina, has reached total depth (TD) of 4100 meters (13,450 feet). A full suite of logs, including image logs, has been run and production casing has been successfully set all the way to TD.

The primary target Vaca Muerta Shale Formation (531 meters or 1,742 feet approximate gross thickness) has initial indications of overpressure. Gas shows were encountered in the Mulichinco Formation (140 meters or 459 feet approximate gross thickness), the Quintuco formation (414 meters or 1,358 feet approximate gross thickness) through the Vaca Muerta Formation and into the Tordillo Formation, and these results were reported to the appropriate government authorities.

The comprehensive suite of logs and mud log information will now be integrated and interpreted. The vertical cores, sidewall cores and rock cuttings have been sent to 3 different laboratories for analysis to measure the petrophysical and geochemical characteristics of the samples, both shales and sands. The results, which are expected during 3Q-2011, will provide fracking and testing options for tight sands and shale gas or oil reservoirs.

This is the first Vaca Muerta Shale gas pilot exploration well drilled in the 250,000 acre (390 sections) Huacalera block which lies along the emerging shale gas and shale oil play corridor in the western part of the Neuquen Basin, Argentina. As previously stated, Americas Petrogas has a 39% Working Interest in this large block and is carried 100% on the Hua.x-1 well by Apache.

Commenting on the drilling of this well, Mr. Barclay Hambrook, President and CEO, stated, "We are very pleased that the well has been drilled and cased successfully and, with Apache, we are looking forward to the results of fracking, testing and further exploration on this very large and promising block. Huacalera occupies a strategic location almost midway between our 5 northern blocks and 3 large southern blocks along the emerging shale play corridor."

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President Petroleum Farms-In to Argentina License

- President Petroleum Farms-In to Argentina License

Monday, June 27, 2011
President Petroleum Co. plc

President Petroleum announced the farm-in of a 50% working interest in the CNO-8 Puesto Guardian license in Salta Province, Argentina.

Highlights

• Entry into very prospective onshore license block with existing oil production, and material upside potential through exploitation of reserve base and further exploration
• Immediately increases net production to President by approximately 225 bopd
• Targeting net 1200 bopd from Argentina by end 2Q 2012 from an initial firm five well drilling program; with further production drilling in 2012 planned.
• Acquisition price $2.20 per 2P barrel
• Acquisition increases Company estimates of net 2P reserves by approximately 500 percent (estimate 2.1 million 1P and 6.6 million 2P barrels of oil, assuming license period extended to 2026), based on assessment performed by internationally recognized reserve auditors
• 2P reserves (net) valued by President at NPV10 US $60 million, assuming license extension to 2026, with material further upside from bringing in Possible reserves and exploration
• Consideration of US $1.5 million cash, 5,102,041 President shares (equivalent to approximately US $2 million at the closing middle share price on 24 June 2011 and an exchange rate of GBP1:US $1.60), a US $10.75 million carry (representing 50% of drilling costs on a US $21.5 million drilling program), plus 1 million warrants to purchase President shares at £0.50 per share
• Acquisition and work program expected to be funded from existing cash resources and current and anticipated production
• Creation of Latin American business unit, charged with managing the acquired business and expanding regional interests
• Energy pricing dynamic in Argentina undergoing positive structural change
• Completion of transaction July 1, 2011

Peter Levine, Chairman of President Petroleum Company Holdings BV commented, "This transaction reflects the determination of the new management of President to concentrate on acquiring producing assets with proved and probable reserves combined with realistic near term potential to materially increase production.

"This acquisition has a solid foundation around existing producing fields, and holds significant exploitation potential with the ability to materially grow production through a clearly thought out near term drilling and completion program. This production is complemented by our production assets in Louisiana, where as previously announced we are embarking on a series of PUD wells and workovers.

"President considers Argentina a very fertile location to build a major hydrocarbon producing business, making material investments in the local economy, engaging with well connected partners, training and growing a local workforce and benefiting the communities where the Company works. President expects to achieve rapid progress in the short to medium term in this regard."

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Crown Point Logs Potential Zone at Argentina Well

- Crown Point Logs Potential Zone at Argentina Well

Monday, May 30, 2011
Crown Point Ventures Ltd.

Crown Point has logged the EV-25 well bore and has cased it as a potential multiple zone oil well. This well is the second of a six well drilling program at El Valle in the San Jorge Basin in Argentina. Logs and samples taken while drilling indicate the presence of four principal zones in the Canadon Seco and Caleta Olivia formations with a combined potential pay thickness of 16.5 meters having an average porosity of 22%.

El Valle has three distinct productive sedimentary formations, which, in order of surface to deepest, are the Canadon Seco, Caleta Olivia and Mina el Carmen. Each of these formations may contain multiple discrete hydrocarbon bearing zones. Typically, the Canadon Seco formation produces medium grade oil (API gravity that ranges from 16-22 degrees), while the Caleta Olivia and Mina el Carmen produce light oil (API gravity of approx. 30 degrees).

The drilling rig is now moving to the location of the third well EV-29 - this well has principal geological targets located in the Caleta Olivia, with secondary targets in the Canadon Seco.

This drilling program is part of a larger 20-25 well program to be conducted at El Valle over the next 24 months, the Company plans to drill 2-5 wells 100% interest wells on the Canadon Ramirez exploitation concession in the Province of Chubut over the next 12 months and one 50% interest well at Laguna de Piedra in the first quarter of 2012. At Cerro Los Leones we anticipate receiving the required environmental permits in the near term and expect to commence the shooting of the 3-D and 2-D seismic programs shortly after receiving the environmental permit.

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Madalena Cases Argentina Well as Potential Oil Discovery

Madalena Cases Argentina Well as Potential Oil Discovery

Tuesday, May 10, 2011
Madalena Ventures Inc.

Madalena Ventures Inc. and its wholly owned subsidiary Madalena Austral SA ("Madalena" or the "Corporation"), announced Tuesday that the Corporation's CAN X-4 exploratory well on the Coiron Amargo Block has been cased as a potential oil discovery. The well is situated on a separately defined 3D drilling anomaly located between the CAN X-1 and CAN X-2 wells.

The CAN X-4 exploration well was drilled to total depth ("TD") of 11,027 feet and has been cased to TD. Both oil and gas shows were evident during the drilling of the Vaca Muerta and Sierras Blancas formations. Based on electric logs, the Vaca Muerta formation had similar thickness and characteristics to the other four wells the Corporation has drilled on the block. In the Sierras Blancas formation, the well encountered a potential gross hydrocarbon column of 92 feet.

The Corporation now plans to return to the CAS X-1 well drilled in April 2011 in the southern portion of the block to test both the Sierras Blancas and Vaca Muerta formations encountered by the well. Part of the test is expected to include a fracture stimulation of the Vaca Muerta formation and combined test results will be reported as soon as they are available. Completion operations at the CAS X-1 well have commenced to be immediately followed by testing of the CAN X-4 well.

Madalena is a publicly traded international junior Canadian oil and gas exploration company. The Company is actively evaluating international oil and gas opportunities with a primary focus on South America.

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