CALGARY, ALBERTA--(Marketwired - Feb 28, 2014) - Americas Petrogas (TSX VENTURE: BOE) ("Americas Petrogas" or the "Company") is pleased to announce the discovery of oil and gas at its Agua de Afuera (ADA.x-1) Vaca Muerta Formation, unconventional, vertical shale exploration well, which is located on the Los Toldos II block (38,400 gross acres or 155 square kilometers or 60 sections) in Neuquen Basin, Argentina.
A five-stage hydraulic fracture stimulation in the Vaca Muerta shale Formation was conducted on the vertical well. Beginning in late 2013, the first production test started and lasted 20 days. During this time, the well produced high quality 39.5 degrees API oil, gas, and injected water.
The initial hydrocarbon production rate was 240 boepd (79% oil). The average hydrocarbon production during this period was 216 boe per day (79% oil) with 460 barrels of flowback water per day on a 4 mm choke. Over the course of the test the well-head static pressure declined normally from 5135 pounds per square inch (psia) to 1427 psia. At the end of this test, 28% of the injected water used for fracturing had been recovered.
After 32 days of pressure build-up and the installation of a preliminary production facility, the well production test was restarted and lasted 24 days.
The average hydrocarbon production during this second test averaged 163 boe per day (77% oil) with 172 barrels of flowback water per day on a 4 mm choke. Over the course of the test the well-head static pressure declined normally from 4170 psia to 944 psia. At the end of this test, 40% of the injected water used for fracturing had been recovered.
The ADA.x-1 well was drilled to total depth of 3,448.5 meters or 11,311 feet, in late 2012 and drilled through 340 meters, or 1,115 feet, of the primary target Vaca Muerta shale formation with oil and gas shows through most of this shale section. Hydrocarbon shows were also encountered in secondary targets such as the Agrio, Quintuco and Tordillo Formations.
Mr. Barclay Hambrook, President and CEO of Americas Petrogas said, "This is the third successful Vaca Muerta discovery that Americas Petrogas has drilled and tested in the Neuquen Basin with our partners, ExxonMobil and Gas y Petroleo del Neuquen. We are extremely satisfied with the results of this Vaca Muerta test and look forward to seeing the potential of the other zones encountered with hydrocarbon shows."
Americas Petrogas is the Operator of the Los Toldos blocks and holds a 45% Working Interest. ExxonMobil also owns a 45% Working Interest with the remainder held by Gas y Petroleo del Neuquen.
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 conventional and unconventional (shale and tight sands) oil and gas interests in numerous blocks in the Neuquen Basin of Argentina. Americas Petrogas has joint venture partners, including ExxonMobil and Apache, on various blocks in Argentina. For more information about Americas Petrogas, please visit www.americaspetrogas.com.
FORWARD LOOKING STATEMENTS
At this time, no pressure transient analysis or well test interpretation has been conducted and the results of this production test should be considered preliminary and not necessarily indicative of long term performance or ultimate recovery until such a time that a pressure transient analysis or well test interpretation has been completed.
Certain statements contained in this press release constitute "forward-looking statements" as such term is used in applicable Canadian and US securities laws. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or are not statements of historical fact and should be viewed as "forward-looking statements". These statements relate to analyses and other information that are based upon forecasts of future results, estimates of amounts not yet determinable and assumptions of management. Such forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.
In particular, statements (express or implied) regarding the ability of the Company to continue to test the ADA.x-1 well and/or to commercially produce or sell oil, gas or other hydrocarbons from the well (or any one of the formations contained therein), including the timing of such activities, should all be viewed as forward looking statements. The presence of hydrocarbon shows is not necessarily indicative that hydrocarbons are capable of being successfully produced in commercial quantities. There is no assurance reserves will be assigned to such hydrocarbon bearing formations. There is no assurance that future wells will be drilled on the Los Toldos blocks or that if drilled, such wells will be successful.
There can be no assurance that such forward-looking statements will prove to be accurate as actual results and future events could vary or differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements contained in this press release. The forward-looking statements contained herein are expressly qualified by this cautionary statement.
Forward-looking statements are made based on management's beliefs, estimates and opinions on the date the statements are made and the Company undertakes no obligation to update forward-looking statements, if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable law.
Any references in this press release to test rates, flow rates, initial test or production rates, and/or early production rates are useful in confirming the presence of hydrocarbons; however, such rates are not necessarily indicative of long-term performance or of ultimate recovery. Such rates may also include recovered "frac" fluids used in well completion stimulation. Readers are cautioned not to place reliance on such rates in calculating the aggregate production for the Company.
Where applicable, natural gas has been converted to barrels of oil equivalent ("BOE") based on 6 Mcf:1 BOE. The BOE rate is based on an energy equivalent conversion method primarily applicable at the burner tip and does not represent a value equivalent at the well-head. Use of BOE in isolation may be misleading.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Americas Petrogas Inc.
Barclay Hambrook, P. Eng., MBA
President and CEO