2010-11-04-2010-10-27

to acquire participating interests in four exploration blocks in the Llanos Basin of Colombia.

Petroamerica Oil Corp., Calgary, (Toronto Venture: PTA) plans to acquire participating interests in four exploration blocks in the Llanos Basin of Colombia from Talisman (Colombia) Oil & Gas Ltd., a subsidiary of Talisman Energy Inc., Calgary, (Toronto, NYSE: TLM) for US$18 million in cash plus related cost.

Petroamerica will pay 50% of the cost of one well to be drilled in 2011 to earn a 25% participating interest in one of the four blocks.

The assets includes 50% participating interest in the two blocks, Los Ocarros and El Sancy, and will assume that portion of the continuing work program obligations for these blocks. For the other two blocks, El Porton and El Eden, Petroamerica will acquire a 25% participating interest and Talisman will retain 25% of its original 50% participating interest share.

Petroamerica will also have the option to purchase a 25% participating interest in the Chiriguaro-1 discovery in the El Eden Block. This option will be open for 18 months from the closing date.

The Los Ocarros, El Sancy, El Porton and El Eden exploration blocks cover more than 441,000 gross acres gross (165,800 net) and are all extensively covered by 3-D seismic. This acreage is positioned in a highly prospective producing trend containing some of the larger fields discovered in the Llanos Basin, La Gloria, La Gloria Norte, Morichal and Trinidad.

The company plans to enter a minimum three-well program on these four blocks, one of which is currently drilling, and the results of which are expected late in the fourth quarter. All of the four blocks are operated by Compañia Española de Petroleos SA.

Petroamerica president and chief executive Paul Kroshko says, "This acquisition is an excellent fit with Petroamerica's existing Llanos Basin portfolio, which includes the recent Balay discovery, and compliments the company's strategy to grow production through low risk exploration drilling."