VANCOUVER, Oct. 22 /CNW/ -- Petroamerica Oil Corp. (the "Company") has completed a series of oil and gas acquisitions in Colombia which constitute a reverse takeover under TSX Venture Exchange ("Exchange") policies. Accordingly, the Company's common shares will trade effective at the market open on October 23, 2009 on the Exchange under the trading symbol PTA. The most significant of the acquisitions is the acquisition of Imore SA ("Imore"). The Company also acquired Free Traders Inc. ("Free Traders") which holds a 5% carried Participating Interest in the Arauca Block, and as disclosed on October 6, 2009, the Company entered into agreements to acquire certain property interests held by Petro Vista Energy Inc. ("Petro Vista") as well as a significant direct shareholding in Petro Vista. Full details of the transactions and detailed descriptions of the Company's property interests are contained in the Company's Filing Statement dated October 20, 2009 filed with the Exchange and posted on SEDAR. The transactions are briefly summarized as follows:

Imore SA
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The Company has acquired all of the issued and outstanding shares of Imore in consideration for 60,000,000 common shares of the Company. Imore has the right to acquire 100% Participating Interests in exploration contracts comprising over 220,000 hectares in the Oriental Cordillera Basin, the Llanos Basin, and the Middle Magdalena Basin, of Colombia. In order to acquire the initial 50% working interests, Imore was required to pay US $1 million and is required to fund a US $43 million exploration program over 36 months (including US $15 million over the first 17 months). Imore has paid $8.5 million to support guarantees for the exploration commitment and has also funded US $6.5 million of the exploration budget. Imore also acquired an option to acquire the remaining 50% balance Participating Interests in these contracts. The option was acquired at a cost of US $3 million (which was satisfied through the issuance of 12,742,800 million shares) and the option can be exercised by payment of US $50 million.

Free Traders
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The Company acquired all of the issued and outstanding shares of Free Traders in consideration for US $5 million. Free traders holds a 5% carried Participating Interest in a Technical Evaluation Agreement respecting the Arauca Block (the "Arauca Block") in Colombia, and in any Exploration and Production Contracts resulting therefrom, including an Exploration and Production Contract which was entered into between Pacific Colombia and the Colombian Agencia Nacional de Hidrocarburos on June 30, 2009. The Arauca Block is held by Pacific Rubiales Energy Corp.

Petro Vista
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The Company and Petro Vista have agreed that the Company will farm-in to one-half of Petro Vista's 50% participating interest in the Morichito Block located in the Llanos basin in Colombia and will also farm-in to one-half of Petro Vista's 50% participating interest in Block SSJN-5 located in the Lower Magdalena basin in Colombia ("Block 5"). In order to farm-in to the Morochito interest, the Company is required to pay Petro Vista's cost of a planned well (to a maximum of US$2.5 million) and in order to complete the Block 5 farm-in, the Company has agreed to fund 100% of Petro Vista's share of the costs of certain seismic program obligations. After the Block 5 farm-in, the Company can acquire Petro Vista's remaining 25% interest for US $3 million, payable in cash or shares.