Equipment Leasing News: Americas Petrogas (TSXV:BOE) says Argentina well shows “significant” oil discovery

VANCOUVER, BC (September 12, 2011) Dominion Lending Centres Clearlease Reports Americas Petrogas (TSXV:BOE) and venture partner Gran Tierra Energy (TSX:GTE) have made a “significant discovery of oil” in the first of three exploration wells on the Rinconada Norte block in the Neuquen Basin of Argentina.

Americas Petrogas said the RN x-1004 well flowed a test rate of approximately 944 barrels per day of oil and 13,360 cubic metres per day of gas (79 barrels of oil equivalent) for a total of about 1,023 barrels of oil equivalent per day from two intervals tested separately in the Precuyo formation, the company said in a statement Monday.

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.

The company said the well has been completed and the service rig is now moving on to the next two wells, which have already been drilled and logged and had production casing installed.

“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,” said Guimar Vaca Coca, managing director of Americas Petrogas Argentina S.A..

“We are also optimistic about the prospects for the remaining two wells.”

Americas Petrogas’ wholly-owned Argentina subsidiary, Americas Petrogas Argentina S.A., is the operator of the Rinconada Norte block, holding a 65 per cent working interest, while Gran Tierra Energy, through its Argentina subsidiary, holds a 35 per cent working interest.

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