Pine Cliff Energy Ltd. has completed two major farm in arrangements in Argentina. The farm ins will result in Pine Cliff earning interests in a total of 912,810 gross acres (542,410 net acres) of exploration and exploitation lands.

CanAmericas Energy Ltd. ("CanAmericas"), a 93.3 percent owned subsidiary of Pine Cliff, has earned a 49% interest and is the largest interest owner in 47,940 gross acres (23,490 net acres) of an exploitation concession situated in the western part of the San Jorge Basin, Argentina, by committing to fund 100% of exploration costs totaling $US 5,500,000 over the next two years.

The commitment includes conducting a 3D seismic program and drilling three wells in the first year at an estimated cost of $US 4,630,000. In the second year of the commitment, CanAmericas is committed to spend the remainder of the $US 5,500,000 on drilling.

The acreage is bordered by several producing oil fields. Over 40 separate prospective reservoirs belonging to the Upper-Mid Cretaceous-aged Bajo Barreal and Castillo Formations, exceeding 13 feet in thickness, are known to exist within the farm in area at depths between 1950 - 5000 feet. Additionally, Neocomian aged source rocks within the farm in area have been proven to be oil generating and over pressured.