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News Releases

Calatea-1 testing postponed and well abandoned; option for future re-entry kept open

March 28, 2011

Petroamerica Oil Corp. (“Petroamerica”, TSX VENTURE: PTA) announces that the decision has been taken to abandon the Calatea-1 exploration well after reaching a total depth of 16,821 feet (true vertical depth).

The well encountered positive hydrocarbon indicators in the form of very high trip gas readings and oil in the mud filter-cake while drilling the prospective reservoir sections.  However, following the deployment of high mud weights to control the gas influx into the well, difficult down-hole conditions ensued. Electrical logs acquired using a logging-while-drilling tool indicate a possible hydrocarbon bearing zone in the Une Formation. Following several attempts, the decision was taken to postpone any further attempt to test the well. The option of a future re-entry will be kept open.

The Calatea-1 well is located in the El Porton block in the Llanos Basin of Colombia. Petroamerica recently entered into a four block transaction with Talisman Colombia Oil & Gas Ltd. (“Talisman”), of which the El Porton block is one. Petroamerica’s participating interest in the El Porton block is 25%.

The assignment by Talisman of the abovementioned participating interest is subject to partner approval (Cepsa Colombia S.A.) and Colombian governmental and/or regulatory approvals.

Cepsa Colombia S.A. is the operator with a 50% participating interest and Talisman holds the remaining 25% participating interest.

Ralph Gillcrist, Petroamerica’s Exploration Vice President, commented “We will continue to explore the additional prospectivity of these blocks with other exploration wells, and in the meanwhile, consider our future options for the Calatea-1 well.”

ON BEHALF OF PETROAMERICA OIL CORP.

“Nelson Navarrete”

President and CEO

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.

FOR FURTHER INFORMATION PLEASE CONTACT:

Nelson Navarrete                                             Colin Wagner

President and CEO                                          CFO

Petroamerica Oil Corp.                                    Petroamerica Oil Corp.

Tel: 57-1-629-3534                                          Tel: 403-237-8300

Email: investorrelations@pta-oil.com          Email: investorrelations@pta-oil.com