Mr. Ian Habke reports

ARPETROL LTD. ANNOUNCES THIRD QUARTER 2015 FINANCIAL AND OPERATING RESULTS

Arpetrol Ltd. has released its financial and operating results for the three and nine months ended Sept. 30, 2015, and provides an operational update on activities to date this year as well as an outlook for the remainder of 2015. The company's interim condensed consolidated financial statements, and management's discussion and analysis (MD&A) for the reporting period have been filed on SEDAR and posted on the company's website.

Summary of third quarter 2015

Operating and financial

Operational difficulties during the third quarter had a negative effect on the company's operating results in the period.

In the third week of August, 2015, an operational difficulty at the Enap SiPetrol Argentina SA-operated third party production facility reduced gas deliveries to Arpetrol's Faro plant to approximately 35 million cubic feet per day. For the third quarter of 2015, third party processing volumes averaged 57.5 million cubic feet per day, a decrease of almost 19 million cubic feet per day from the same period in the prior year.

In mid-September, 2015, a compressor failure at Arpetrol's Faro field shut in production for 17 days until the compressor was replaced at the beginning of October. Production for the third quarter of 2015 was 160 barrels of oil equivalent per day (boe/d), down from the 218 boe/d produced during the second quarter of 2015.

Both operational difficulties were fixed by the first week of October. Third party processing volumes for October, 2015, averaged 79 million cubic feet per day, and production volumes for October, 2015, averaged over 250 boe/d.

Arpetrol's funds flow from operations was $(497,586) during the third quarter of 2015, a decrease of $787,167 over the third quarter of 2014. The decrease in funds flow resulted from both higher cost, and lower production and processing volumes. For the nine months ended Sept. 30, 2015, funds flow from operations was $728,695, a decrease of $249,269 from the nine months to Sept. 30, 2014.

The third-quarter 2015 average realized natural gas price was $5.80 per thousand cubic feet, 50 cents per thousand cubic feet higher than the price realized in the second quarter of 2015. The average realize natural gas price during the third quarter of 2015 increased by 97 cents per thousand cubic feet over the third quarter of 2014. The period-over-period increases in gas prices are primarily driven by the strengthening U.S. dollar against the Canadian dollar. The companies' natural gas prices are set in U.S. dollars.

The company sells its natural gas liquids in the spot market at prices denominated in U.S. dollars. During the third quarter of 2015, the company averaged a net realized price for natural gas liquids (NGL) of $75 (U.S.) per barrel (bbl), compared with $68 (U.S.) per bbl for the second quarter of 2015 and $84 (U.S.) per bbl for the third quarter of 2014. In Canadian-dollar terms, the average net realized prices for natural gas liquids were $98.09 per bbl for the third quarter of 2015, $86.14 per bbl for the second quarter of 2015 and $84.29 per bbl for the third quarter of 2014. The strengthening U.S. dollar versus the Canadian dollar contributed to improve Canadian-dollar prices during each period.

In the third quarter of 2015, the company recognized an impairment in the carrying value of its property, plant and equipment (PPE). The decline in world oil prices has resulted in a lack of available capital investment, which, in turn, has changed management's planned future development spending on its oil and gas assets. At Sept. 30, 2015, management performed an impairment analysis of the carrying value of the company's PP&E and determined it exceeded the recoverable amount. The recoverable amount was determined based on the estimated fair value less expected cost of disposal. This resulted in an impairment loss of $10.5-million relating to the company's oil and natural gas assets, and was reported in the Argentina segment.

The company's net loss for the third quarter was $11,275,886, compared with a net loss of $68,760 for the third quarter of 2014.

As at Sept. 30, 2015, the company had working capital of $2.6-million compared with $2.9-million at June 30, 2015, and $1.5-million at Dec. 31, 2014. The company has no long-term debt.

                                     SUMMARY OF RESULTS 
                                
                                             Three months ended         Nine months ended
                                                       Sept. 30,                 Sept. 30,
                                              2015         2014          2015        2014
Financial
Processing revenues                    $ 1,902,145  $ 2,234,764   $ 6,919,409 $ 6,536,899
Production sales                           598,111      769,086     1,891,262   2,051,441
Funds flow from operations (1)            (497,586)     289,581       728,695     977,964
Cash generated from (used in)
operating activities                       169,789      491,997     1,090,283     502,657
Net income (loss)                      (11,275,886)     (68,760)  (10,858,137)  1,414,026
Capital expenditures                           621        6,241         6,299     148,155
Per-share funds flow from
operations (2)                               (0.02)        0.01          0.03        0.04
Per-share net income (2)                     (0.50)        0.00         (0.48)       0.06
Operations
Processing
Processing volumes -- Mcf per day           57,556       76,413        72,957      76,307
Processing revenue                       1,902,145    2,234,764     6,919,409   6,536,899
Operating netback (1)                      567,032    1,108,187     3,077,831   3,595,572
Average operating netback --
$ per Mcf processed (1)                       0.10         0.16          0.15        0.17
Production
Natural gas -- Mcf per day                     867        1,330         1,029       1,279
NGL -- bbl per day                              15           23            16          22
Total -- boe per day (1)                       160          244           188         235
Average operating netback --
$ per boe (1)                               (16.58)        3.20         (4.44)       5.07
Average sales price
Natural gas -- $ per Mcf                      5.80         4.83          5.31        4.47
NGL -- $ per bbl                             98.09        84.29         91.40       81.45
Foreign exchange rates --
period ended
U.S. dollar/Canadian dollar                   1.34         1.12
Argentina peso/U.S. dollar                    9.41         8.44
Argentina peso/Canadian dollar                7.02         7.61

(1) See advisories with respect to non-international financial reporting standards measures
    and boe presentation.
(2) All outstanding warrants, stock options and convertible debentures were excluded in
    calculating the weighted average number of dilutive common shares outstanding, as they
    were determined to be anti-dilutive.
(3) On June 2, 2014, the company completed a consolidation of its issued and outstanding 
    shares on the basis of  25  preconsolidation common shares for each one postconsolidation
    share. All share and per-share numbers have been adjusted to reflect this consolidation.
(4) In January, 2015, the company received approval to commence a normal course issuer bid
    permitting the company to repurchase, for cancellation, up to 1,822,521 shares of the 
    company. The normal course issuer bid commenced on Jan. 6, 2015, and is approved for
    one year. As of Sept. 30, 2015, the company has purchased 411,000 shares.

Outlook

Arpetrol had a challenging third quarter but returned to stable operations in October, 2015. The company's outlook for the fourth quarter estimates processing volumes of 67 million to 75 million cubic feet per day and production of 225 to 275 boe/d. Finally, Arpetrol continues to evaluate at all strategic opportunities available to the company.

We seek Safe Harbor.