CALGARY, ALBERTA -- (Marketwired) -- 05/01/13 -- Americas Petrogas Inc. ("Americas Petrogas" or the "Company") (TSX VENTURE: BOE) announces that it has filed its 2012 audited consolidated financial statements and Management's Discussion and Analysis ("MD&A") relating to its 2012 year-end results. The Company also filed the disclosure and reports relating to reserves data and other oil and gas information required pursuant to National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities. These filings can be accessed electronically on the System for Electronic Document Analysis and Retrieval (SEDAR) website: www.sedar.com. All amounts are in Canadian dollars unless otherwise stated.
Year-end Highlights and Recent Developments
-- During 2012, the Company continued to produce and sell oil from two of its conventional blocks, Medanito Sur and Rinconada Norte, both operated by the Company. Production during 2012, including some oil from testing unconventional wells, averaged 1,991 bopd (net), an increase of approximately 252% over the average daily production during 2011 of 566 bopd (net).-- Operating netback of $35,608,189 ($50.11 per barrel) during the year ended December 31, 2012 compared to $5,830,721 ($30.60 per barrel) during the same period of 2011. This improvement of $29,777,468 represents an increase of 511% and can be attributed mainly to higher quantity of oil sold and higher prices in 2012. See note (1) below.-- This year's net revenue increased by $37,320,362 compared to 2011, which is an increase of 420%.-- In 2012, the Company recognized $1,296,224 of Oil Plus benefits related to 2010. Subsequent to year-end US$857,000 of this recognized amount had already been collected. Oil Plus is a government incentive offered to producers.-- $58.2 million of consolidated cash, cash equivalents and short-term investments as of December 31, 2012.-- Completed an expansion of the Company's own production and processing facilities at Medanito Sur to handle up to 6,300 bopd.-- Eight conventional wells were drilled during the fourth quarter of 2012. Of these eight wells, six are in production, one is awaiting completion, and one is shut-in. During the entire year of 2012, thirty-one (31) conventional wells were completed and 27 wells found hydrocarbons, for a success rate of 87%. Recent drilling on Medanito Sur has resulted in new discoveries in previously untested areas of the block, indicating potential new fields.-- The Aguada Los Loros (ALL.x-1) well, on the Los Toldos I block (98,300 gross acres or 398 square kilometers or 154 sections), was drilled and subsequent to year-end, in early 2013, a four-stage hydraulic stimulation program was performed in the Vaca Muerta shale formation (562 meters or 1,843 feet thick). The well discovered gas and natural gas liquids. The initial production of the Vaca Muerta shale formation increased from 1.3 million cubic feet (36,738 cubic meters) per day to 3.2 million cubic feet (90,418 cubic meters) per day of natural gas with 9 to 18 barrels of oil per day condensate (54-58 degree API) on managed choke sizes (4-6mm). Hydrocarbon shows were also encountered and data acquired in the following formations: lower Agrio, Mulichinco, Quintuco and Tordillo. For more information, see "Additional Information on Unconventional" below.-- On the Los Toldos Este (LTE.x-1) well on the Los Toldos II block (38,400 gross acres or 155 square kilometers or 60 sections), a five-stage hydraulic stimulation program was performed in the Vaca Muerta shale formation (343 metres or 1,125 feet thick). The initial flow rate of the Vaca Muerta shale formation was 797 barrels of oil equivalent per day (boepd) of which 694 barrels of oil per day (bopd) was high quality light sweet oil, 39.6 degrees API. The average flow rate for the initial 30 days was 309 boepd, of which there was 254 bopd. Hydrocarbon shows were also encountered and data acquired in the following formations: Upper Agrio, Lower Agrio, Mulichinco, Quintuco and Tordillo. For more information, see "Additional Information on Unconventional" below.-- Drilling of the Agua de Afuera (ADA.x-1) well, on the Los Toldos II block, reached total depth ("TD") in late 2012. The well 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. For more information, see "Additional Information on Unconventional" below.-- The La Hoya (LHo.x-1) well, located on the Company's Totoral block in the southwestern region of the Neuquen Basin, was drilled (approximately 1,900 metres total depth), cased and cemented in mid-2012. It intersected the Vaca Muerta Shale formation with thickness of 203 metres or 666 feet with oil and gas shows through the whole shale column. During drilling, hydrocarbon shows were also encountered and data acquired in the Mulichinco, Quintuco, and Quebrada del Sapo formations. Early in 2013, the Company reported the discovery of light oil related to this well. In January 2013, a three-stage hydraulic stimulation program was performed in the Vaca Muerta shale formation. After the initial clean-up flow back, the well produced a total liquid rate of 300 to 600 barrels per day (bpd) which included 30 to 60 barrels of oil per day (bopd) of high quality light sweet oil, 33 degrees API gravity. For more information, see "Additional Information on Unconventional" below.-- In late 2012, the government announced a price of US$7.50 per million BTU for unconventional gas under its Gas Plus program.-- The Company recognized accounting impairment losses relating to Gobernador Ayala IV and Rinconada Norte.-- The Company completed a brine mineral resource estimate relating to Potassium Chloride (KCl, potash) in accordance with National Instrument 43-101.-- The Company continues to advance on its phosphates project in Peru. Recently, the Company staked an additional approximately 10,000 hectares (24,700 acres) of concession lands in the Sechura Desert with potential for phosphates and other minerals.-- In 2012, after extensive surface sampling involving numerous trenches, the Company conducted a 19-borehole drilling program on its southeastern block at Bayovar to identify the presence and extent of evaporites, phosphates, gypsum and other brines. The drilling program was completed in December 2012. Analysis and testing of the cores is planned for later this year.-- Subsequent to year-end, in April 2013, the Company began the process of exercising the option to acquire an interest in the Bayovar concession. The exercising of the option is subject to government approval of required documents for exercising the option.