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News Releases

Petroamerica Discovers Light Oil with the Las Maracas-2 Sidetrack Exploratory Well, Los Ocarros Block, Colombia

August 31, 2011

Petroamerica Oil Corp. (“Petroamerica”) (TSXV:PTA) is pleased to announce a light oil discovery with its Las Maracas-2 Sidetrack well ( the “well”) on the Los Ocarros Block, in the Llanos Basin of onshore Colombia.

During initial testing, the well produced, under natural flow from a 6-foot perforated interval in the Mirador Formation, light oil (37 degree API) at rates up to 938 barrels of oil per day (“bopd”) with bulk sediment and water of 1.3% through a fully open choke size of 2 inches. The well was flowed on clean-up for 24 hours and was shut-in at a fluid rate of approximately 860 bopd with a water-cut of 2%. The pressure build-up analysis shows significant skin damage. More extensive testing with an electro-submersible pump will be performed using a workover rig at a later date.  This will provide more information on the well deliverability, reservoir properties and accumulation size.  The well has been completed as a future producer.

The petrophysical evaluation of the logs obtained while drilling (“LWD”), indicate a net oil pay thickness in the Mirador Formation of between 30 to 40 feet depending on which cut-off parameters are usedand an average porosity of 21%. In addition to the Mirador Formation, drilling to the deeper reservoir objectives of the Gacheta and Une reservoir formations was planned, however, due to operational difficulties resulting from the high deviation angle, the final total depth ended up in the Mirador Formation. Nonetheless, this well has significantly reduced the exploration risk of these deeper reservoir objectives, which will be drilled by a vertical well at some point in the future.

Petroamerica announced on July 4, 2011, that it had entered into a farm-in agreement with Parex Resources Colombia Ltd. Sucursal (“Parex”) to farm-out 50% of its working interest in the Los Ocarros block (the “Farmout”) which was derived from a farmout with Talisman (Colombia) Oil & Gas Ltd. (“Talisman”), announced on January 4, 2011. The Las Maracas-2 sidetrack well was drilled as an exclusive operation, with Parex paying the cost of drilling and logging the sidetrack up to a cap of US$7.0 million. The cost of casing, testing and completing the well will be shared equally. Under the terms of the Joint Operating Agreement, the non-consenting party has the right to back-in to the discovery and retain its 50% working interest by paying 1000% of its working interest share of the cost of the exclusive operation to drill and test the Las Maracas-2 sidetrack well. In the event that the non-consenting party decides not to back-in, Petroamerica will hold a 50% working interest in the Las Maracas discovery, and a 25% working interest in the rest of the block.

The transfer of Petroamerica’s 50% working interest pursuant to the Talisman farmout remains subject to approval by the Colombian National Hydrocarbon Regulatory Authority (the “ANH”), and the subsequent transfer of 50% of such working interest (net 25%) as part of the above noted farm out, is subject to approval by the ANH.

Petroamerica is a junior oil and gas company operating in Colombia and its shares are listed on the TSX Venture Exchange under the symbol “PTA”.

ON BEHALF OF PETROAMERICA OIL CORP.

“Nelson Navarrete”

President and CEO

Forward-Looking Statement

This news release includes forward-looking statements related to the expected occurrences in relation to the properties and wells identified.  A multitude of factors can cause actual events to differ significantly from any anticipated development and although Petroamerica believes that the expectations represented by such forward-looking statements are reasonable; there can be no assurance that such expectations will be realized.  These forward looking statements are based upon assumptions that Petroamerica has made concerning the oil and gas industry in Colombia, the reliability of available data regarding the properties and wells, and the continuing market for oil and gas.  Risk factors may include the uncertainty of conducting operations under a foreign regime, the availability of labour and equipment, the fluctuating price of oil and gas, the requirement for ANH approval and Petroamerica’s dependence upon other participants in the property areas.  Neither Petroamerica nor any of its subsidiaries nor any of its officers or employees guarantees that the assumptions underlying such forward-looking statements are free from errors, nor do any of the foregoing accept any responsibility for the future accuracy of the opinions expressed in this document or the actual occurrence of the forecasted developments.

Although the Company believes that the expectations represented by the forward-looking statements contained herein are reasonable, undue reliance should not be placed on the forward-looking statements because there can be no assurance that such expectations will be realized. The forward-looking statements contained in this document are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

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