Mr. Nelson Navarrete reports

PETROAMERICA ANNOUNCES THIRD QUARTER 2013 RESULTS AND OPERATING RESULTS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2013

Petroamerica Oil Corp. has released the financial and operating results for the three and nine months ended Sept. 30, 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. (The financial results for all periods presented are in United States dollars unless otherwise indicated.)

Quarterly highlights include:

• Generated net income of $18.2-million (three cents per share basic), funds flow from operations of $35.3-million (six cents per share basic) and positive cash flow from operations of $34.1-million (six cents per share basic), resulting in cash on hand at Sept. 30 of over $64-million (current cash on hand: $77.9-million);
• Realized a Brent referenced sales price of $108 per barrel and an operating netback of approximately $78/ per barrel;
• Achieved quarter-over-quarter production growth with total company average production for the third quarter of 5,951 barrels of oil per day, compared with 5,046 barrels of oil per day in the second quarter; production average for the month of October was 6,312 barrels of oil per day (total company working interest, a new production high);
• Participated in the drilling of four development and appraisal wells: Las Maracas-10, Las Maracas-11, Las Maracas-12 and Las Maracas-14, resulting in four oil producers;
• Drilled La Casona-2 well; the La Casona-2 ST2 has been cased and is currently awaiting the arrival of a workover rig to begin testing the Mirador formation;
• Long-term test production facility for the La Casona-1 well commissioned;
• Increased working interest from 25 per cent to 100 per cent in the exploration area of the El Porton block with the objective of drilling the Crypto-1 well early in 2014.

The attached financial and operating highlights table presents the highlights of Petroamerica's financial and operating results.

                             FINANCIAL AND OPERATING HIGHLIGHTS
                (in $000 (U.S.) except per share or unless otherwise noted)     

                                                Q3 2013       Q2 2013    Nine months        Q3 2012
2013

Oil revenue -- net of royalties            $     54,794  $     46,105  $     146,566   $      9,241
Funds flow from operations                 $     35,322  $     24,164  $      82,735   $      4,381
Funds flow per share, basic                $       0.06  $       0.04  $        0.14   $       0.01
Funds flow per share, diluted              $       0.06  $       0.04  $        0.14   $       0.01
Income (loss) for period                   $     18,164  $     11,171  $      43,448   $     (4,888)
Total comprehensive income (loss)          $     17,013  $     11,389  $      43,287   $     (4,954)
Income (loss) per share, basic             $       0.03  $       0.02  $        0.07   $      (0.01)
Income (loss) per share, diluted           $       0.03  $       0.02  $        0.07   $      (0.01)

Average production, bopd                          5,951         5,046          5,135          1,522
Selling price $/bbl                        $     108.00  $      99.25  $      105.37   $     106.38
Royalty $/bbl                              $       9.90  $       7.86  $        8.75   $       8.50
Average transportation costs $/bbl         $      18.69  $      15.97  $       17.55   $      22.35
Average production cost $/bbl              $       1.84  $       4.83  $        3.15   $       3.21
Operating netback $/bbl                    $      77.57  $      70.59  $       75.92   $      72.31
Funds flow netback $/bbl                   $      64.51  $      52.62  $       59.02   $      31.29

Third quarter financial summary

For the three months ended Sept. 30, 2013, the company reported $54.8-million in oil revenue, net of royalties, from the sale of 558,524 barrels of oil. The realized sales price was $108 per barrel, generating an operating netback of $77.57 per barrel.

For the third quarter of 2013, the company's net income was $18.2-million (three cents per share diluted). The company's capital expenditures for the third quarter were $17.6-million, all invested in Colombia, and primarily for facilities construction, development drilling on the Las Maracas field, and exploration drilling at Curiara-1 and La Casona-2. These capital expenditures were financed from available cash on hand.

At the end of the third quarter, the company's cash position was $64.9-million, and the company holds $35-million (Canadian) of debt in senior notes payable by April 19, 2015.

Operations update:

• Total company production for the month of October averaged 6,312 barrels of oil per day (company working interest).
• Production from the Maracas field averaged 12,450 barrels of oil per day (gross) for the month of October.
• Drilling on the Rumi-1 well on the El Eden block is continuing. The well is currently drilling at a depth of over 12,000 feet in the Carbonera formation. Results for this well are expected for mid-December.
• A workover rig is expected on site to test the La Casona-2 well soon, and test production on the La Casona-1 well is expected to start shortly. With an electrosubmersible pump installed, the La Guira-1 well produced at high water cuts until the well watered out.

Outlook

As of Oct. 31, 2013, the average total company working interest production for the year was 5,255 barrels of oil per day, and the company is on target to exceed its production guidance for 2013 of an average of 5,000 barrels of oil per day. Production guidance for 2014 is expected to be released in December, 2013.

The company has revised the projection for its capital spending program for 2013 to approximately $80.0-million, a 14-per-cent increase from the original spending estimate of $70.0-million for the year but a 9-per-cent decrease from the projection released in August of 2013. With strong oil prices expected throughout the rest of this year and a current cash position of approximately $77.9-million, the company expects to be self-financing for the rest of 2013 and 2014. The company expects to release its 2014 capital budget and work program in December, 2013.

        CONDENSED CONSOLIDATED INTERIM STATEMENTS OF NET INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS)
                                     (expressed in U.S. dollars)
                                                                                                                      
                                                  Three months ended Sept. 30,      Nine months ended Sept. 30,
                                                         2013            2012            2013             2012
Revenue
Oil revenue -- net of royalties                $   54,794,043  $    9,240,519  $  146,565,954  $    15,452,126
Expenses
Production                                         (1,029,451)       (305,636)     (4,784,394)      (1,624,147)
Transportation                                    (10,438,880)     (2,127,752)    (26,617,490)      (2,736,492)
Purchased oil                                              --              --      (2,623,753)              --
Exploration and evaluation                         (5,773,352)     (4,471,554)     (6,098,861)      (6,617,467)
Depletion and depreciation                         (7,903,006)     (1,220,317)    (22,260,085)      (2,359,288)
General and administration                         (2,473,451)     (1,701,746)     (7,045,141)      (5,805,722)
Share-based payments                                 (226,358)       (300,468)       (711,218)      (1,000,887)
Total                                             (27,844,498)    (10,127,473)    (70,140,942)     (20,144,003)
Finance and other                                  (1,371,637)     (1,322,160)     (3,870,004)      (2,029,058)
Impairment of accounts receivable                          --      (1,919,635)             --       (1,919,635)
Foreign exchange (loss) gain                          595,758        (758,835)        522,154         (321,847)
Total                                                (775,879)     (4,000,630)     (3,347,850)      (4,270,540)
Income (loss) before income taxes                  26,173,666      (4,887,584)     73,077,162       (8,962,417)
Current income tax expense                         (3,734,994)             --     (17,624,514)              --
Deferred tax expense                               (4,274,562)             --     (12,004,831)
Net income (loss) for the period                   18,164,110      (4,887,584)     43,447,817       (8,962,417)
Other comprehensive income
Items that will not be reclassified
subsequently to income or (loss)
Reserve on translation of foreign operations
and net investments in foreign operations          (1,150,713)        (66,319)       (160,457)           89,419
Other comprehensive income (loss)                  (1,150,713)        (66,319)       (160,457)           89,419
Total comprehensive income (loss)               $  17,013,397  $   (4,953,903)  $  43,287,360   $    (8,872,998)
Basic income (loss) per share                   $        0.03  $        (0.01)  $        0.07   $         (0.02)
Diluted income (loss) per share                 $        0.03  $        (0.01)  $        0.07   $         (0.02)

We seek Safe Harbor.