Americas Petrogas (TSX VENTURE:BOE) ("Americas Petrogas" or the "Company") announces that it continues to make significant progress on two blocks, Medanito Sur and Rinconada Norte, which target conventional hydrocarbons in the Eastern part of the Neuquen Basin in Argentina.
A fifth well, Exploratory well PRN.x-2 (Puesto Ramos Norte x-2) on Medanito Sur block was uneconomic and is expected to be converted into a water disposal well.
With respect to production, the Company is currently producing from Medanito Sur and Rinconada Norte for a combined total gross production of approximately 2,150 bopd and net production to Americas Petrogas of approximately 1,900 bopd.
The Company continues to drill and complete additional wells on the two target blocks.
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 (NYSE Amex: GTE; TSX: GTE), through its Argentina subsidiary, holds a 35% working interest.
Mr. Barclay Hambrook, President & CEO, stated, "Existing daily production from our conventional blocks is ahead of schedule for 2012 and with the continued drilling on Medanito Sur and Rinconada Norte, we will consider options for expanding our facilities in the near future."