Cohen & Steers Tax-Adv Pref Secs and Inc Fund V.PTA

Material Update of the Independent Reserves and Re

[royalton]

Petroamerica Announces a Material Update of the Independent Reserves and Resources Evaluation for the Balay Discovery, Colombia

20:12 EST Friday, Apr 29, 2011

CALGARY, April 29 /CNW/ -

Petroamerica Oil Corp. ("Petroamerica" or the "Company") (TSXV: PTA) announces that due to the results of the Balay-2 ST1 well, the Company obtained an update to the DeGolyer and MacNaughton "Report as of December 31, 2010 on the Contingent Resources owned by Petroamerica Oil Corp. in the Balay Block Colombia NI 51-101" attached to and forming part of the 51-101F1 Statement of Reserves Data and Other Oil and Gas Information included in the Company's 2010 Annual Information Form.

The DeGolyer and MacNaughton updated report is dated effective March 31, 2011 and was prepared on April 26, 2011, (the "D&M March 31 Report").

The D&M March 31 Report states that "The Balay-2 well defined a deeper lower limit of oil in the upper Mirador Formation. Wireline pressure data recorded in the Balay-2 well along with shut-in pressure data acquired in the Balay-1 well in January 2011 also provided important reservoir information. Together, these new data present a material change in the contingent resources quantities estimated in the Balay area over estimates at year-end 2010."

The Balay-1 well is currently flowing oil under long-term production test and as of April 25, 2011, had produced more than 270,000 barrels of 28 degree API oil with no water (Bulk Sediment and Water, 0.22%). Initial testing of the Balay-2ST1 has been completed and the results of this test program will be the subject of a separate press release.

As of March 31, 2011, DeGolyer and MacNaughton estimated the following gross recoverable contingent resources to the Balay discovery: a low estimate of 1.045 million barrels of oil (157,000 barrels participating interest), a best estimate of 8.683 million barrels of oil (1.302 million barrels participating interest) and a high estimate of 20.528 million barrels of oil (3.079 million barrels participating interest).

Additionally, DeGolyer and MacNaughton has classified the production coming from the long-term production test as proved reserves amounting to 161,000 barrels of oil gross (24,000 barrels of oil participating interest and 22,000 barrels of oil net). Petroamerica's working interest in the Balay discovery is 15% before government royalties.

Estimates of future net revenue and information in respect of pricing assumptions are included in the D&M March 31 Report attached to the Company's Material Change Report filed concurrently with this press release.

The absence of an approved development plan has resulted in most of these hydrocarbon quantities being classified as "contingent resources". The D&M March 31 Report states that: "Contingent resources estimated in this report are those quantities of oil and natural gas that are potentially recoverable from known accumulations but which are not currently considered to be commercially recoverable because of the lack of an approved development plan and lack of regulatory approvals". The operator, Petrobras, is presently working with the other joint venture partners towards defining a development plan and commerciality application.

For further information on the oil and gas reserves and resources of the Company, referred to herein, see the "51-101F1 Statement of Reserves and Other Oil and Gas Information" filed with and forming part of the Company's 2010 Annual Information and the complete copy of the D&M March 31 Report attached to the Material Change Report, both filed under the Company's profile at www.sedar.com.

Definitions

	Gross" means:
	(a)	in relation to the Company's interest in production or reserves, its "company gross reserves", which are its working interest (operating or non-operating) share before deduction of royalties and without including any royalty interests of the Company;
	(b)	in relation to wells, the total number of wells in which the Company has an interest; and
	(c)	in relation to properties, the total area of properties in which the Company has an interest.
	"Net" means:
	(a)	in relation to the Company's interest in production or reserves its working interest (operating or non-operating) share after deduction of royalty obligations, plus the Company's royalty interests in production or reserves;
	(b)	in relation to the Company's interest in wells, the number of wells obtained by aggregating the Company's working interest in each of its gross wells; and
	(c)	in relation to the Company's interest in a property, the total area in which the Company has an interest multiplied by the working interest owned by the Company.
	"Participating Interest" is used in the D&M March 31 Report to refer to net amounts of contingent resources, before royalties, tax, and other costs, which is equivalent to gross working interest share before deduction of royalties.

Definitions of Reserves:

	Reserves Categories
	reserves are estimated remaining quantities of oil and natural gas and related substances anticipated to be recoverable from known accumulations, from a given date forward, based on:
	analysis of drilling, geological, geophysical and engineering data; the use of established technology; and specified economic conditions, which are generally accepted as being reasonable, and shall be disclosed.
	reserves are classified according to the degree of certainty associated with the estimates.
	(d)	Proved reserves are those reserves that can be estimated with a high degree of certainty to be recoverable. It is likely that the actual remaining quantities recovered will exceed the estimated proved reserves.
	(e)	Probable reserves are those additional reserves that are less certain to be recovered than proved reserves. It is equally likely that the actual remaining quantities recovered will be greater or less than the sum of the estimated proved plus probable reserves.
	(f)	Possible reserves are those additional reserves that are less certain to be recovered than probable reserves. It is unlikely that the actual remaining quantities recovered will exceed the sum of the estimated proved plus probable plus possible reserves.
	Development and Production Status
	Each of the reserves categories (proved, probable and possible) may be divided into developed and undeveloped categories:
	(a)	Developed reserves are those reserves that are expected to be recovered from existing wells and installed facilities or, if facilities have not been installed, that would involve a low expenditure (for example, when compared to the cost of drilling a well) to put the reserves on production. The developed category may be subdivided into producing and non-producing.
		(i)	Developed producing reserves are those reserves that are expected to be recovered from completion intervals open at the time of the estimate. These reserves may be currently producing or, if shut-in, they must have previously been on production, and the date of resumption of production must be known with reasonable certainty.
		(ii)	Developed non-producing reserves are those reserves that either have not been on production, or have previously been on production, but are shut-in, and the date of resumption of production is unknown.
	(b)	Undeveloped reserves are those reserves expected to be recovered from known accumulations where a significant expenditure (for example, when compared to the cost of drilling a well) is required to render them capable of production. They must fully meet the requirements of the reserves classification (proved, probable, possible) to which they are assigned.
	In multi-well pools it may be appropriate to allocate total pool reserves between the developed and undeveloped categories or to subdivide the developed reserves for the pool between developed producing and developed non-producing. This allocation should be based on the estimator's assessment as to the reserves that will be recovered from specific wells, facilities and completion intervals in the pool and their respective development and production status.
	Levels of Certainty for Reported Reserves
	The qualitative certainty levels referred to in the definitions above are applicable to "individual reserve entities" (which refers to the lowest level at which reserves calculations are performed) and to "reported reserves" (which refers to the highest level sum of individual entity estimates for which reserves are presented). Reported reserves should target the following levels of certainty under a specific set of economic conditions:
	at least a 90% probability that the quantities actually recovered will equal or exceed the estimated proved reserves; at least a 50% probability that the quantities actually recovered will equal or exceed the sum of the estimated proved plus probable reserves; at least a 10% probability that the quantities actually recovered will equal or exceed the sum of the estimated proved plus probable plus possible reserves.
	A quantitative measure of the certainty levels pertaining to estimates prepared for the various reserves categories is desirable to provide a clearer understanding of the associated risks and uncertainties. However, the majority of reserves estimates will be prepared using deterministic methods that do not provide a mathematically derived quantitative measure of probability. In principle, there should be no difference between estimates prepared using probabilistic or deterministic methods. Definitions of Resources
	The term "resources"encompasses all petroleum quantities that originally existed on or within the earth's crust in naturally occurring accumulations, including discovered and undiscovered (recoverable and unrecoverable) plus quantities already produced. Accordingly, total resources are equivalent to total Petroleum Initially-In-Place ("PIIP").
	Resources are also classified according to the degree of certainty associated with the estimates.
	Contingent resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations using established technology or technology under development, but which are not currently considered to be commercially recoverable due to one or more contingencies. Contingencies may include factors such as economic, legal environmental, political, and regulatory matters or a lack of markets. It is also appropriate to classify as contingent resources the estimated discovered recoverable quantities associated with a project in the early evaluation stage. Contingent resources are further classified in accordance with the legal concept of certainty and may be subclassified based on project maturity and/or characterized by their economic status.
	A portion of contingent resources may be associated with projects that are economically viable but have not yet satisfied all requirements of commerciality. Accordingly, it may be a desirable option to subclassify contingent resources by economic status:
	Economic Contingent resources are those contingent resources that are currently economically recoverable.
	Sub-Economic Contingent resources are those contingent resources that are not currently economically recoverable.
	Undetermined Economic Status - Where evaluations are incomplete such that it is premature to clearly define the economic viability of a project, it is acceptable to note that project economic status is "undetermined".
	The DM contingent resources referred to in the D&M March 31 Report have been assigned the category "Undetermined Economic Status"

Measurement

The estimates of oil and gas reserves and contingent resources included in the D&M March 31 Report are expressed in terms of 42 US gallons per barrel

Independent Evaluator

DeGolyer and MacNaughton is an independent oil and gas consulting firm based in Dallas, Texas. DeGolyer and MacNaughton have acted as independent qualified evaluators in preparing reserves and resources estimates included in the Company's 2010 Statement of Reserves Data and Other Oil and Gas Information. For further information, refer to the Annual Information Form of Company dated effective December 31, 2010 and filed under the Company's profile at www.sedar.com.

A complete copy of the D&M March 31 Report is attached as Appendix A to the Material Change Report dated as of today's date and filed concurrently with this news release under the Company's profile on www.sedar.com.

Caution Respecting Reserves and Other Oil and Gas Information

The determination of oil and gas reserves or resources involves the preparation of estimates that have an inherent degree of associated uncertainty. Categories of proved and probable reserves and different categories of resources have been established to reflect the level of these uncertainties and to provide an indication of the probability of recovery. The estimation and classification of reserves and resources requires the application of professional judgment combined with geological and engineering knowledge to assess whether or not specific reserves or resources classification criteria have been satisfied. Knowledge of concepts including uncertainty and risk, probability and statistics, and deterministic and probabilistic estimation methods is required to properly use and apply reserves and resources definitions.

The reserves and resource estimates provided herein are estimates only. Actual reserves and resources may be greater than or less than the estimates provided. In addition, there is no certainly that it will be commercially viable to produce any proportion of the estimated resources.

The estimated values of future net revenue set out in the D&M March 31 Report do not represent fair market value.

Forward Looking Information

This press release contains forward-looking statements. The use of any of the words "anticipate", "continue", "estimate", "expect", "may", "will", "project", "should", "believe" and similar expressions are intended to identify forward-looking statements. statements relating to "reserves" or "resources" are deemed to be forward looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the resources and reserves described can be profitably produced in the future.

The forward-looking statements are based on certain key expectations and assumptions made by Petroamerica, including, but not limited to:

·oil and natural gas production levels;

·prevailing commodity prices and exchange rates;

·availability of labour and drilling equipment;

·timing and amount of capital expenditures;

·general economic and financial market conditions;

·governmental approvals of contracts entered into with industry partners in relation to properties and operations;

·government regulation in the areas of taxation, royalty rates and environmental protection;

·production of new and existing wells and the timing of new wells coming on-stream;

·the performance characteristics of oil and natural gas properties;

·the size of oil and natural gas reserves or resources;

·the ability to raise capital and to continually add to reserves and resources through exploration and development; and

·the success of exploration and development activities.

Although Petroamerica believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Petroamerica can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. These statements speak only as of the date of this press release. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to:

·volatility in market prices for oil and natural gas;

·volatility in exchange rates;

·liabilities inherent in oil and natural gas operations;

·changes or fluctuations in production levels;

·stock market volatility and market valuation of our stock;

·uncertainties associated with estimating oil and natural gas reserves and resources;

·competition for, among other things, capital, acquisitions of reserves and resources, undeveloped lands and skilled personnel;

·incorrect assessments of the value of acquisitions and exploration and development programs;

·geological, technical, drilling, production and processing problems;

·changes in legislation, including changes in tax laws, royalty rates and incentive programs relating to the oil and natural gas industry

·changes in regulation or policy positions by governments with respect to the development of oil and gas resources or foreign ownership of natural resources; and

·various risk factors discussed under the heading "Risk Factors" in the Corporation 2010 Annual Information Form filed under the Corporation's profile on www.sedar.com.

Readers are cautioned that the foregoing lists of factors are not exhaustive. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement. Petroamerica does not undertake any obligation to publicly update or revise any forward-looking statements other than as required under applicable securities laws.

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.

ON BEHALF OF PETROAMERICA OIL CORP.

"Nelson Navarrete"

President and CEO

For further information:

Nelson Navarrete		Colin Wagner
President and CEO		CFO
Petroamerica Oil Corp.		Petroamerica Oil Corp.
Tel: [phone]		Tel: [phone]
Email: [e-mail]		Email: [e-mail]