Americas Petrogas Inc. announces that it has entered into agreements with Ingenieria Alpa SA (Alpa) to acquire Alpa’s 33% working interest in Los Toldos I, II, III and IV as well as Alpa’s 19% working interest in Totoral, Yerba Buena and Bajada Colorada, all of which are located in the Neuquen province in Argentina. The Company has agreed to pay a total of US$4.6 million in cash for the acquisitions. Closing of the transactions is subject to receipt of all necessary regulatory, board and other approvals and is scheduled to close in July 2011. Americas Petrogas already holds existing working interests in these same blocks and, as a result, upon closing of the transactions, Americas Petrogas will hold a 90% working interest in the Los Toldos blocks along with a 90% working interest in Totoral, Yerba Buena and Bajada Colorada. The remaining 10% working interest on these blocks is held by Gas y Petroleo of the Neuquen province.
The Company intends to embark on a drilling program on these blocks in search of both conventional and unconventional hydrocarbons. Barclay Hambrook, President and CEO of Americas Petrogas stated, “We are pleased to acquire these additional working interests in such large blocks located in the western region of the basin, which is known for conventional hydrocarbon occurrence and unconventional hydrocarbon potential. These blocks offer significant potential for unconventional shale gas, shale oil, tight gas as well as conventional oil and gas.”
