Second Quarter Highlights and Recent Developments
-- Ryder Scott Company estimated that the Company has 56.1 Billion Barrels of Oil Equivalent ("BOE") initially in place and 8.3 Billion BOE Recoverable in the Company's nine unconventional shale oil and shale gas properties. The report only considered the Vaca Muerta, Agrio and Los Molles shales. The report did not consider additional zones of interest such as the Quintuco, Tordillo, Mulichinco and others.-- During the second quarter of 2013, Petrogas Argentina obtained two loans from the Industrial and Commercial Bank of China (Argentina) S.A. in the total amount of AR$50.0 million (approximately $9.5 million).-- Nine (9) conventional wells were drilled during the second quarter of 2013. Earlier in 2013, drilling on Medanito Sur resulted in the discovery of new production areas, including El Alpataco, El Calden Este, Amilcar and La Meseta. In total, twenty (20) conventional wells were drilled in the first half of 2013. As well, the Company invested $12.8 million in facilities and equipment during the first half of 2013.-- The Company, in conjunction with its partner, ExxonMobil, continued to conduct long-term production testing on the LTE.x-1 well and continued to analyze data relating to the ALL.x-1 well and ADA.x-1 well.-- During the second quarter of 2013, the Company made the necessary filings and received the necessary approvals to make a Normal Course Issuer Bid ("NCIB") to buy-back some of its common shares commencing on June 21, 2013 and terminating on June 20, 2014 or such earlier date as all shares which are subject to the NCIB are purchased. Up to the current date, the Company has bought back and cancelled 207,000 common shares for a total cost of approximately $185,000.
"We are pleased with our results this quarter, generating $19.5 million of operating netback at $89.51 per barrel, including Oil Plus benefits, and $5.1 million of net income," said Barclay Hambrook, President and Chief Executive Officer. Mr. Hambrook went on to say, "The results of the Ryder Scott Company report were excellent and this report clearly highlights the large upside potential of Americas Petrogas' Neuquen Basin blocks."
For further information regarding the Company's financial results, financial position and related changes, please see the consolidated financial statements and the related MD&A.
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 oil and gas 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 the shale oil and gas corridor in the Neuquen Basin, Argentina. Americas Petrogas also owns an 80% interest in GrowMax Agri Corp., a private company involved in the exploration for near-surface potash, phosphates and other minerals, and potential development of a fertilizer project in Peru. Indian Farmers Fertiliser Co-operative Limited (IFFCO) owns a 20% interest in GrowMax Agri Corp. For more information about Americas Petrogas Inc., please visit www.americaspetrogas.com.
This Press Release contains forward-looking information including, but not limited to, the Company's goals and growth, estimates of reserves and resources, production and cash flows, new production areas on the Medanito Sur block, production testing of the LTE.x-1 well, analysis relating to the ALL.x-1 well and ADA.x-1 well, results of the Ryder Scott Company report, the large upside potential of Americas Petrogas' Neuquen Basin blocks, exploration, appraisal and development activities related to conventional and unconventional oil and gas, and other exploration, development and production activities in respect of the projects in Argentina and Peru. The recovery and resources estimates for the Company's properties described in this Press Release are estimates only and there is no guarantee that the estimated resources will be recovered. The actual resources for the Company's properties may be greater or less than those calculated. Additional forward-looking information is contained in the Company's MD&A for this quarter and the Company's Annual MD&A for December 31, 2012, and reference should be made to the additional disclosures of the assumptions, risks and uncertainties relating to such forward-looking information in those MD&A documents.