ARPETROL : ANNOUNCES NORMAL COURSE ISSUER BID AND PROVIDES OPERATIONAL UPDATE (2015 01 06 Press Release)

TSX VENTURE: RPT January 6, 2015

CALGARY, ALBERTA - ArPetrol Ltd. ("ArPetrol" or the "Company") (TSX VENTURE:RPT) announces that it has received TSX Venture Exchange ("TSXV") approval of its Notice of Intention to commence a normal course issuer bid (the "NCIB") through the facilities of the TSXV, permitting the Company to repurchase, for cancellation, up to 1,822,521 common shares in the capital of the Company ("Common Shares") representing 10 percent of the Company's Public Float (as such term is defined in the TSXV Corporate Finance Manual). The NCIB will commence on January 6, 2015, and run until the earlier of the date on which purchases under the NCIB have been completed and January 5, 2016. The Company believes that, depending on the trading price of the Common Shares and other relevant factors, purchasing Common Shares represents an attractive investment opportunity and is in the best interests of ArPetrol and its shareholders.
The NCIB is to be made through the facilities of the TSXV and other Canadian Market Places, and in accordance with policy statements on normal course issuer bids. The price which ArPetrol will pay for any Common Share will be the market price at the time of acquisition plus brokerage fees, if any. No purchases of Common Shares have been made by the Company in the past 12 months. Purchases pursuant to the NCIB will be made by Raymond James Ltd. on behalf of the Company. A copy of the Form 5G - Notice of Intention to make a Normal Course Issuer Bid filed by the Company with the TSXV can be obtained from the Company upon request without charge.
To the knowledge of the directors and officers of ArPetrol, no director or officer, associate of a director or officer of the Company, no person acting jointly or in concert with the Company nor any person holding ten percent or more of the Common Shares has any present intention to sell Common Shares during the period of the NCIB.

Operational Update and Outlook

During 2014, ArPetrol made significant progress towards a stable revenue generating company with a balance sheet that supports its operations. Production and third party processing volumes for the fourth quarter of 2014 are expected to be 190 barrels of oil equivalent per day (boe/d) and 69 million cubic feet per day (MMcf/d) respectively. Cash flows for the fourth quarter of 2014 are expected to be below previous quarters due to a routine maintenance shut-down in December. The Company's short term loan was fully repaid as anticipated prior to December 31, 2014.

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ArPetrol has also been able to repatriate significant funds from Argentina to Canada through the repayment of intercompany loans. During 2014, repayment of loan principal and interest to Canada totaled over $US 3 million. It is expected that all 2015 excess cash flow from Argentina operations could be repatriated to Canada should the Company choose.
The Company's 2015 outlook includes estimated production of 200 to 240 boe/d with estimated processing volumes of 70 to 80 MMcf/d. In 2015, the Company's forecasted cash flows are expected to allow it to be self-funding to cover its capital expenditures and generate cash for other uses throughout the year.

ArPetrol is a Calgary-based publicly traded company engaged in oil and natural gas exploration, development and production and third-party natural gas processing in Argentina, where it owns and operates a gas processing facility with capacity of 85 million cubic feet per day.

Production information is commonly reported in units of barrels of oil equivalent (boe). For purposes of computing such units, natural gas is converted to equivalent barrels of oil using a conversion factor of six thousand cubic feet to one barrel. This conversion ratio of 6:1 represents energy equivalency, which is primarily applicable at the burner tip, and does not represent a value equivalency at the wellhead. Such disclosure of boe may be misleading, particularly if used in isolation.

This news release contains certain forward‐looking statements relating, but not limited, to operational information, the ability to maintain processing rates and revenue in the same range as previously realized, the ability to be self-funding and maintain positive cash flow in 2015, estimated production volumes, processing volumes and capital expenditures, and the ability to repatriate excess cash flow to Canada. Forward‐looking information typically contains statements with words such as "anticipate", "believe", "expect", "plan", "intend", "estimate", "propose", "project", or similar words suggesting future outcomes. The Company cautions readers and prospective investors in the Company's securities not to place undue reliance on forward‐looking information as, by its nature, it is based on current expectations regarding future events that involve a number of assumptions, inherent risks and uncertainties, which could cause actual results to differ materially from those anticipated by the Company.
Forward-looking information is based on management's current expectations and assumptions regarding, among other things, future operations and transactions, future capital and other expenditures (including the amount, nature, timing, availability and sources of funding thereof), stable processing volumes, future production and processing revenue, future economic conditions, future currency and exchange rates, future pricing, the ability to repatriate funds from Argentina, continued political stability in the areas in which the Company is operating, and the Company's continued ability

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to obtain and retain qualified management and staff and equipment in a timely and cost-efficient manner. Although the Company believes the expectations and assumptions reflected in such forward‐ looking information are reasonable, they may prove to be incorrect.
Forward‐looking information involves significant known and unknown risks and uncertainties. A number of factors could cause actual results to differ materially from those anticipated by the Company, including but not limited to risks associated with the oil and natural gas industry (e.g., operational risks for its producing assets risks inherent in future drilling programs and the operation of the gas plant, and health, safety and environmental risks), the ability to retain management and staff, difficulties that may be encountered to repatriate funds, weather-induced delays and natural disasters, interruptions to production and processing revenue, production declines, the uncertainty regarding future revenues, union activities and labour issues in Argentina, the risk of commodity price changes, the risk of foreign exchange rate fluctuations (which may not be as favourable as those currently experienced), currency controls, and risks associated with international activity and political risks over which it has no control (including risks related to the general economic and business conditions in Argentina, economic, social or political instability or change, the uncertainty of negotiating with foreign governments, expropriation and/or nationalization, changes in export or exchange policies, adverse determinations or rulings by governmental authorities, and changes in energy policies or in the personnel administering them).
The forward‐looking information included herein is expressly qualified in its entirety by this cautionary statement. The forward‐looking information included herein is made as of the date hereof and the Company assumes no obligation to update or revise any forward‐looking information to reflect new events or circumstances, except as required by law. Additional information relating to the Company is also available on SEDAR at www.sedar.com.

Ian Habke - President and Chief Financial Officer i.habke@arpetrol.com

Main Telephone: 403-263-6738
Or visit us at: www.arpetrol.com
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV)
accepts responsibility for the adequacy or accuracy of this release

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