Mr. Nelson Navarrete reports

PETROAMERICA ANNOUNCES THE FINANCIAL AND OPERATING RESULTS FOR THE THREE MONTHS ENDED MARCH 31, 2013

Petroamerica Oil Corp. has released the financial and operating results for the three months ended March 31, 2013. Copies of the company's management discussion and analysis and financial statements have been filed with the Canadian securities regulatory authorities and can be viewed or downloaded at the company's website or at SEDAR.

Effective Jan. 1, 2013, the company changed its presentation currency from the Canadian dollar to the United States dollar to better reflect the company's business activities and to improve investors' ability to compare the company's financial results with other publicly traded businesses in the oil and gas industry. The financial results for all periods presented are in United States dollars unless otherwise indicated.

Quarterly highlights include:

• Generated net income of $14.1-million and positive funds flow from operations of $22.5-million;
• Realized a Brent referenced sales price of $109.37 per barrel and an operating netback of approximately $79 per barrel compared with $71 per barrel for the fourth quarter of 2012;
• Continued production growth at the Las Maracas field, resulting in total company average production of 4,375 barrels of oil per day for the quarter, an increase of 35 per cent over the fourth-quarter 2012 average daily production;
• Completed the drilling of four wells -- Las Maracas-7, Las Maracas-13, Balay-4 and the Altillo Oeste-1 exploration well -- resulting in two oil producers, one water disposal well and one exploration dry hole;
• Initiated three wells -- Las Maracas-8 and 9, which have since been completed as oil producers, and the Curiara-1 exploration well, which has been cased and is currently testing;
• Completed a comprehensive testing of the La Casona-1 well on the El Eden block, resulting in 1,700 barrels of oil per day from the Une formation.

The table presents the highlights of Petroamerica's financial and operating results for the three months ended March 31, 2013, and 2012.

                              HIGHLIGHTS
                    (in thousands of U.S. dollars,
              except share, per share or otherwise noted)

                                          Three months ended March 31,
                                                    2013          2012

Oil revenue -- net of royalties             $     45,667  $      1,564
Funds flow from operations                  $     22,477  $     (1,803)
Funds flow per share -- basic                       0.04         (0.00)
Funds flow per share -- diluted                     0.04         (0.00)
Income (loss) for period                    $     14,112  $     (3,656)
Total comprehensive income (loss)           $     14,885  $     (2,987)
Income (loss) per share --  basic           $       0.02  $      (0.01)
Income (loss) per share --  diluted         $       0.02  $      (0.01)
Total assets                                $    165,734  $     91,831
Total cash                                  $     53,594  $     10,619
Notes payable                               $     32,336  $          -
Shareholders' equity                        $     99,306  $     81,979
Exploration costs                           $        326  $      2,203
Capital expenditures                        $     12,900  $      5,538
Average daily production -- bbl                    4,375           236
Selling price per barrel                    $     109.37  $     119.95
Royalty per barrel                          $       9.07  $       9.60
Average transportation costs per barrel     $      17.89  $       8.38
Average production cost per barrel          $       2.90  $      18.54
Operating netback per barrel                $      79.51  $      83.43
Funds flow netback per barrel               $      57.08  $     (84.82)

First-quarter financial summary

For the three months ended March 31, 2013, the company reported $45.7-million in oil revenue, net of royalties, from the sale of 452,074 barrels of oil. The realized sales price was $109.37 per barrel, generating an operating netback of approximately $79 per barrel.

For the first quarter of 2013, the company's net income was $14.1-million (two cents per share diluted), due to the increased production from the Las Maracas field, strong oil prices and the sales of built-up inventory balances of 91,171 barrels of oil on hand at Dec. 31, 2012. The company's capital expenditures for the first quarter were $12.9-million, all invested in Colombia, and were primarily for facility construction, and appraisal and development drilling, on the Maracas field. These capital expenditures were financed from available cash on hand.

Operations update

Total company production for the month of April averaged 4,575 barrels of oil per day (company working interest).

On the Los Ocarros block, the Las Maracas-8 well is currently producing approximately 1,200 barrels of oil per day from the Mirador formation, and the Las Maracas-9 well is producing approximately 1,000 barrels of oil per day from the Gacheta formation.

Production facilities at the Las Maracas field are more than 99 per cent complete and are expected to be commissioned and operational toward the end of May, 2013. Production levels for this field for the month of May to date have averaged approximately 9,500 barrels of oil per day (gross).

On the El Eden block, the Tuscany 119 rig is currently being mobilized to drill the La Casona-2 appraisal well, which is located approximately 700 metres to the northeast of the discovery well. This well will further evaluate the Une, Gacheta and Mirador (untested in the La Casona-1 well) reservoirs. Production from this discovery is expected to begin some time in the third quarter of 2013 once gas compression facilities have been installed.

The Rumi-1 exploration well on the El Eden block will be drilled after the La Casona-2 well.

The Curiara-1 well on the El Porton block (25-per-cent company working interest) has reached its target depth, has been cased and is currently undergoing testing.

Exploration and appraisal drilling in 2013

A summary of exploration and appraisal drilling expected to take place over the near term is provided in the table.

                                                     Working
Prospect/well        Well type          Block       interest   Timing/status

Curiara-1          Exploration      El Porton    25 per cent         Testing
La Casona-2          Appraisal        El Eden    40 per cent    Q2 2013 spud
Las Maracas-10     Development    Los Ocarros    50 per cent    Q2 2013 spud
Rumi-1             Exploration        El Eden    40 per cent    Q2 2013 spud
La Guira-1         Exploration    Los Ocarros    50 per cent    Q3 2013 spud
Malavar-1          Exploration      Llanos-10    50 per cent    Q4 2013 spud

Outlook

Given the company's current working capital position, strong oil prices projected for 2013 and the expected completion of the Las Maracas production facilities by the end of the second quarter of 2013, the company expects to fully finance all of its current development and exploration activities for the fiscal year from a combination of funds on hand and through current and future cash flows, and does not anticipate needing any further outside financing for the current year. However, in the event of exploration success, the company may be required to obtain additional financing to support appraisal and development activities.

The company plans on drilling at least one appraisal well on the El Eden block, which is scheduled to occur some time in the second quarter of 2013, as well as procuring equipment to put the La Casona-1 well on long-term test. This equipment should be in place some time early in the third quarter of 2013, and the testing program should commence shortly thereafter.

When the production facilities at Las Maracas are complete, the joint venture should be able to begin to produce the field at its optimum level. These facilities, which have been designed to handle up to 15,000 barrels of oil and 25,000 barrels of water per day, are expected to be completed by the end of May, 2013. Further to this, with the proposed development drilling program for 2013, the overall production from this field is expected to increase, which would further enhance the revenues and cash flows that the company will experience.

The company is actively managing its exploration and development portfolio as well as reviewing current and future business opportunities within the oil and gas sector in Colombia with a view to ensuring that the company is able to maintain and expand its asset base over the mid to long term. These opportunities could involve farm-ins, asset purchases or other forms of business combinations, and will be assessed on their merits as they arise. The company is also actively investigating available options that would enable it to become an operator in Colombia.

We seek Safe Harbor.