THE WOODLANDS, TX, May 6, 2014 /CNW/ - Porto Energy Corp., ("Porto" or the "Company") (TSXV:PEC), today announced the Portuguese government approved the
seismic data sales agreement between the Company and TGS-NOPEC
Geophysical Company ASA (OSLO:TGS) ("TGS"). As previously disclosed in its fiscal second quarter Management
Discussion and Analysis ("MD&A") filed on April 29, 2014, the Company agreed to terms with TGS for the
licensing and marketing of four sets of survey data including one 3D
offshore survey spanning 1,099 square kilometers, two 3D onshore
surveys totaling 358 square kilometers (excluding 160 square kilometers
of Aljubarrota 3D seismic data as it is jointly owned by the Company
and its joint venture partner, Petróleos de Portugal - Petrogal, S.A.
("Galp")), and one 24,000 square kilometer aeromagnetic survey. Approval of
the agreement is not guaranteed to bring in immediate funding.
However, in obtaining government approval, TGS can now begin to market
the Company's seismic data to interested parties. If a sale is
consummated, Porto expects to receive the proceeds, less any fees, from
TGS within 30 days of that sale according to the sales agreement.
"We entered into this agreement with the goal of extracting maximum
value from the Company's geophysical assets," said Joseph P. Ash,
President and CEO of Porto Energy. "Each single license for the entire
data set has the potential to bring in up to $1.4 million net to Porto,
which would provide enough funding for the Company to meet its working
capital obligations for 12 months or more while we continue to market
our assets to interested parties. As discussed in our fiscal second
quarter MD&A, we are working to secure a non-refundable security
deposit from interested parties equivalent to one percent of the
principal amount of the previously announced convertible promissory
note financing to support our immediate working capital needs."
About TGS-NOPEC Geophysical Company ASA
TGS provides multi-client geoscience data to oil and gas Exploration and
Production companies worldwide. In addition to extensive global
geophysical and geological data libraries that include multi-client
seismic data, magnetic and gravity data, digital well logs, production
data and directional surveys, TGS also offers advanced processing and
imaging services, interpretation products, permanent reservoir
monitoring and data integration solutions. For more information on TGS
About Porto Energy Corp.
Porto Energy Corp. is an international oil and gas company engaged in
the exploration of crude oil and natural gas in Portugal, including the
appraisal of a gas discovery. Through its wholly owned subsidiary,
Mohave Oil And Gas Corporation (a Texas corporation with branch offices
in Portugal), the Company holds working interests in seven concessions
in Portugal's Lusitanian Basin totaling 1.6 million net acres. Through
its exploration efforts to date, the Company has identified seven major
exploration trends over its concessions and generated more than 45
prospects and leads. Porto Energy's shares trade on the TSX Venture
Exchange under the ticker symbol "PEC". For more information on Porto
Energy visit www.portoenergy.com.
This press release contains certain forward-looking statements. These
statements relate to future events or the Company's future
performance. All statements other than statements of historical fact
are forward-looking statements. The use of any of the words
"anticipate", "plan", "continue", "estimate", "expect", "may", "will",
"project", "should", "believe", "predict" and "potential" and similar
expressions are intended to identify forward-looking statements. These
statements involve known and unknown risks, uncertainties and other
factors that may cause actual results or events to differ materially
from those anticipated in such forward-looking statements. No assurance
can be given that these expectations will prove to be correct and such
forward-looking statements should not be unduly relied upon. These
forward-looking statements are made as of the date of this press
release and the Company does not undertake to update any
forward-looking statements that are contained in this press release,
except in accordance with applicable securities laws.
Neither 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: Porto Energy Corp.
For further information:
Heath Cleaver - Chief Financial Officer