Petroamerica Announces the Drilling Start-up of the Las Maracas-5 Well, Provides a Production Update for its Colombian Operations, and Announces the Engagement of a Special Advisor to its Board of Directors

Petroamerica Oil Corp. (TSXV: PTA) ("Petroamerica" or the "Company"), a junior oil and gas company operating in Colombia is pleased to announce the start of drilling of the Las Maracas-5 well (the "well") on the Los Ocarros Block in the Llanos Basin of Colombia, which was spud on September 30, 2012.  The well is primarily targeting production from the Mirador Formation but it will also test the deeper Gacheta reservoir in a structurally low position. The well is being drilled with the Tuscany 109 drilling rig, and upon its completion, is expected to be followed closely by the Las Maracas-6 well and a possible water disposal well.

The Company further announces that the logistical circumstances previously limiting crude oil production and transportation at the Las Maracas Field no longer apply, and since September 22, 2012 the field has been producing at more than 5,000 barrels of oil per day ("bopd") with minimal water (less than 3% water cut).

Petroamerica holds a 50% participating interest in the Los Ocarros Block. The contractual operator of the block is Cepcolsa, which 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.

With the increased production coming from the Las Maracas field, at September 29, 2012, the Company's total working interest production was 2,714 bopd (2,497 bopd net after royalties).

Petroamerica is also pleased to announce the engagement of Sonny Mottahed as Special Advisor to the Corporation's Board of Directors.  Mr. Mottahed will provide strategic and financial advisory services with respect to projects and corporate acquisitions as part of the ongoing development of Petroamerica's assets in Colombia. Sonny Mottahed is the CEO of Black Spruce Merchant Capital Corp., a private merchant banking firm focused on providing specialized financing and advisory services to the global energy industry.

Additionally, the Company reports that pursuant to the Company's Stock Option Plan, a total of 7,450,000 stock options have been granted to certain directors, officers, employees and advisors of the Company on October 1, 2012, to be priced at the closing market price 48 hours after issuance. This grant is subject to regulatory approval. The options were issued pursuant to the Company's stock option plan and expire on October 1, 2022.  The options vest in thirds, with one third vesting upon issuance, and one third vesting on each of the first and second anniversaries of issuance.

About Petroamerica:

Petroamerica Oil Corp. is a junior oil and gas exploration and production company with activities in Colombia. Petroamerica has production coming from two oil discoveries and has interests in seven exploration blocks, all located in Colombia's Llanos Basin. 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 and with respect to expectations regarding drilling and completion activities and third party approvals of the Company's activities. 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, the regulatory environment in which the Company operates 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 results of drilling 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.

SOURCE: Petroamerica Oil Corp.