Apco Argentina Reports New Oil Price Agreement

TULSA, Okla., June 16 /PRNewswire-FirstCall/ -- Apco Argentina Inc. today announced that the company has reached an agreement with the purchaser of its Medanito crude oil production from the Neuquen basin that increases its sales price from $42 per barrel to $47 per barrel. The agreement is effective beginning with May 2008 oil sales.

The company's equity investee, Petrolera Entre Lomas S.A., (Petrolera) has reached a similar agreement, with the same terms and conditions as those obtained by Apco.

Net to its consolidated and equity interests, on a barrel of oil equivalent (Boe) basis, Medanito crude oil currently represents approximately 60 percent of the company's combined direct and indirect daily sales volume of 10,500 Boe.

The company also is actively seeking to improve its oil sales prices in its remaining properties in Argentina.

About Apco (Nasdaq: APAGF)

Apco is an oil and gas exploration and production company with interests in seven oil and gas concessions and two exploration permits in Argentina.

    Contact:           Julie Gentz
                       Williams (media relations)
                       (918) 573-4944

                       Thomas Bueno
                       Apco Argentina (investor relations)
                       (918) 573-2570

Apco's reports, filings, and other public announcements might contain or incorporate by reference statements that do not directly or exclusively relate to historical facts. Such statements are "forward-looking statements" within the meaning of Private Securities Litigation Reform Act of 1995. You typically can identify forward-looking statements by the use of forward-looking words, such as "anticipate," believe," "could," "continue," "estimate," "expect," "forecast," "may," "plan," "potential," "project," "schedule," "will," and other similar words. These statements are based on our intentions, beliefs, and assumptions about future events and are subject to risks, uncertainties, and other factors. Actual results could differ materially from those contemplated by the forward-looking statements. In addition to any assumptions and other factors referred to specifically in connection with such statements, other factors could cause our actual results to differ materially from the results expressed or implied in any forward- looking statements. Those factors include, among others: our ability to extend the terms of the concessions in which we participate; the accuracy of estimated hydrocarbon reserves and seismic data; risks and costs associated with drilling, production, gathering, processing, and transporting activities; the costs of environmental liabilities and compliance with existing and future environmental regulations; our ability to obtain and successfully develop new reserves; our ability to contract for drilling rigs on reasonable terms; our reliance on a relatively small group of customers; the competence and financial resources of the operators of concessions in which we participate; changes in, and volatility of, supply, demand, and prices for crude oil, natural gas, and other hydrocarbons; economic, market, currency, and political instability in Argentina, as well as measures taken by the government in response to such instability; strikes, work stoppages, and protests in Argentina; the cost and outcome of legal and administrative proceedings; changes in Argentine laws and regulations to which Apco is subject, including tax, environmental and employment laws and regulations; and weather and other natural phenomena. In light of these risks, uncertainties, and assumptions, the events described in the forward-looking statements might not occur or might occur to a different extent or at a different time than we have described. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Investors are urged to closely consider the disclosures and risk factors in our annual report on Form 10-K and quarterly reports on Form 10-Q filed with the Securities and Exchange Commission and available from our offices or at www.sec.gov.

SOURCE Apco Argentina Inc.