Petroamerica Oil Corp. is focused on light/medium oil in Colombia. The company has assembled a large portfolio of prospective oil properties in several prolific basins, and is joint ventured on some of these properties with established producers in the country.

President Paul Kroshko and his team were previously the operating management in Colombia for Petrominerales Corp. (PMG-TSX), where they discovered several new fields including Corcel and Mapache. Petrominerales currently produces approximately 30,000 bopd from Colombia gas definition science.

Ron Pantin, CEO of Pacific Rubiales (PRE-TSX) is on the Company’s Advisory Board. Augusto Lopez, a director of Pacific Rubiales, also sits on the Company’s Board of Directors.

Colombia’s favourable tax regime and permissive geology make it one of the best places in the world for oil development.

Calgary, Alberta (July 3, 2012) Petroamerica Oil Corp. (TSX-V:PTA)(“Petroamerica”), a junior oil and gas company operating in Colombia is pleased to announce  the start of the appraisal drilling program on the Los Ocarros Block in the Llanos Basin of Colombia with the spud of the Las Maracas-3 appraisal well on June 28, 2012.  The Las Maracas-3 well will appraise the Mirador discovery made by the Las Maracas-2 Sidetrack well, announced August 2011 and on production since April 23, 2012. Additionally, the Las Maracas-3 well has an important exploration component targeting the deeper Une and Gacheta reservoirs that produce in other fields in the vicinity. The Las Maracas-3 well will be drilled to a total depth of 12,784 feet (measured depth) by the Tuscany 119 drilling rig and is expected to reach its total depth by mid-July, 2012. The Las Maracas-4 appraisal well will be drilled immediately after the completion of the Las Maracas-3 well, and will further assess the Mirador formation as well as any exploration discoveries made by the Las Maracas-3 well.

Petroamerica holds a 50% participating interest in the Los Ocarros Block. The contractual operator of the block is Cepcolsa, who has transferred its 50% working interest to Parex Resources Colombia Ltd. Sucursal.  Final approval of this transfer by the ANH (Colombian National Hydrocarbon Agency) is pending.

About Petroamerica:

Petroamerica Oil Corp. is a junior oil and gas exploration and development company operating in Colombia. Petroamerica has interests in eight blocks, comprising a total of 1.8 million gross acres. The Company’s Balay and Las Maracas oil discoveries are located in Colombia’s Llanos Basin, on the Balay and Los Ocarros Blocks, respectively. Petroamerica’s shares are listed on the TSX Venture Exchange under the symbol “PTA”.

Forward-Looking Statement

This news release includes forward-looking statements related to the expected occurrences in relation to the properties 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 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, 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.