Mr. Ian Habke reports

ARPETROL LTD. ANNOUNCES SECOND QUARTER 2015 FINANCIAL AND OPERATING RESULTS

ArPetrol Ltd. has released its financial and operating results for the three and six months ended June 30, 2015, and has provided an operational update on activities to date this year, as well as an outlook for the rest of 2015. (All values in the news release are in Canadian dollars unless otherwise indicated.) The company's interim condensed consolidated financial statements and management's discussion and analysis for the reporting period have been filed on SEDAR and posted on the company's website.

Summary of the second quarter 2015

Operating and financial

The company continues to generate positive operating results. During the second quarter of 2015, ArPetrol's funds flow from operations was $542,728, an increase of $534,932 over the second quarter of 2014. The increase was due to improved operating performance, reduced general and administrative expenses, lower bank charges on the repatriation of funds from Argentina, and foreign exchange. For the six months to June 30, 2015, funds flow from operations was $1,226,281, an increase of $537,901 from the six months to June 30, 2014. This increase primarily occurred in the second quarter of 2015.

During the second quarter of 2015, gas-processing revenues were $2.5-million generating an operating netback of $1.3-million. This is consistent with the results from the first quarter of 2015.

During the second quarter of 2015, production averaged 218 barrels of oil equivalent per day, an increase of 31 boe per day from the first quarter of 2015. This increase was due to a slow return to full production after a maintenance shutdown at the beginning of December, 2014.

The second quarter 2015 average realized natural gas price was $5.30 per thousand cubic feet, 41 cents per thousand cubic feet higher than the price realized in the first quarter of 2015. Each year its gas price increases in May in line with the terms of its gas sales agreement. This increase will continue until the end of the year. The average realize natural gas price during the second quarter of 2015 increased by 93 cents per thousand cubic feet over the second quarter of 2014. The year-over-year increase in gas prices is primarily driven by the strengthening U.S. dollar against the Canadian dollar. The company's natural gas prices are set in U.S. dollar.

The average realized price for natural gas liquids in the second quarter of 2015 was $86.14 per barrel, consistent with the first quarter of 2015 and a $3.96-per-barrel increase over the second quarter of 2014. The company sells its natural gas liquids in the spot market with the prices denominated in U.S. dollars. The changes to the realized prices between the second quarter of 2015 and the second quarter of 2014 reflect the strengthening of the U.S. dollar against the Canadian dollar. Realized prices in U.S. dollars remained consistent between the same periods.

The company's net income for the second quarter was $199,144, compared with net loss of $160,794 for the second quarter of 2014.

As at June 30, 2015, the company had working capital of $2.9-million compared with $2.6-million at March 31, 2015. The company has no long-term debt.

                                        SUMMARY OF  RESULTS        

                                                           Three months ended        Six months ended 
                                                                 June 30,                 June 30,
                                                           2015          2014        2015        2014
Financial                                                                                            
(Cdn $)                                                                     
                                                                                                     
Processing revenues                                  $2,537,764    $2,055,225  $5,017,264  $4,302,135
Production sales                                        729,112       632,204   1,293,151   1,282,355
Funds flow from operations                              542,728         8,660   1,226,281     688,380
Cash generated from (used in) operating activities    1,273,002    (1,045,556)    927,967     (10,657)
Net income (loss)                                       199,144      (160,794)    417,749   1,482,786
Per share funds flow from operations                       0.02          0.00        0.05        0.03
Per share net income                                       0.01         (0.01)       0.02        0.06
                                                                                                     
Operations                                                                                           
                                                                                                     
Processing                                                                                           
Processing volumes -- Mcf per day                        78,286        77,286      80,785      76,253
Processing revenue                                    2,537,764     2,055,225   5,017,264   4,302,135
Operating netback                                     1,280,879     1,128,820   2,510,799   2,487,385
Average operating netback -- $ per Mcf processed           0.18          0.16        0.18        0.18
Production                                                                                           
Natural gas -- Mcf per day                                1,187         1,176       1,112       1,252
NGL -- bbl per day                                           20            22          17          21
Total -- boe per day                                        218           218         202         230
Average operating netback -- $ per boe                     4.97          8.73        0.45        6.08
Average sales price                                                                                  
Natural gas -- $ per Mcf                                   5.30          4.37        5.11        4.29
NGL -- $ per bbl                                          86.14         82.18       85.76       81.78
Foreign exchange rates -- period ended                                                                
U.S. dollar/Canadian dollar                                1.24          1.07                        
Argentina peso/U.S. dollar                                 9.14          8.14                        
Argentina peso/Canadian dollar                             7.40          7.63                        

Outlook

ArPetrol has made significant progress toward a stable revenue-generating company with a balance sheet that supports its operations. The company's 2015 outlook remains unchanged from the first quarter of 2015, including estimated processing volumes of 70 million to 80 million cubic feet per day and production of 190 to 240 barrels of oil equivalent per day. Finally, ArPetrol continues to evaluate all opportunities available to the company.

We seek Safe Harbor.