Americas Petrogas makes a new light oil discovery on its Totoral block in the Southwestern region of the Neuquen Basin, Argentina. The discovery well, LHo.x-1, drilled and established oil production potential from the Vaca Muerta Shale in a new and large region, the Picun Leufu Sub-Basin, which extends over much of the Company's three southernmost blocks -- Totoral, Yerba Buena and Bajada Colorada (1,126,600 acres or 4,559 square kilometres or 1,760 sections).

Mr. Barclay Hambrook, President and CEO of Americas Petrogas, said, "This new exploration discovery is very exciting for Americas Petrogas as it adds significant exploration upside to a very large area where the Vaca Muerta formation could be produced at relatively shallow depths. I thank our team for their dedication and their decision-making, which were instrumental in this new discovery."

The LHo.x-1 well was drilled (approximately 1900 metres total depth), cased and cemented in mid-2012. It intersected the Vaca Muerta Shale formation with thickness of 666 feet or 203 metres with oil and gas shows through the whole shale column. During drilling, hydrocarbon shows were also encountered and data acquired in the Mulichinco (299 feet thick), Quintuco (2,172 feet thick), and Quebrada del Sapo (190 feet thick) formations.

Tags: Americas Petrogas