Porto Energy Corp. Announces Expiry of Letter of Intent for Farm-In on Selected Portuguese Concessions
THE WOODLANDS, TX, May 1, 2012 /CNW/ - Porto Energy Corp., ("Porto" or the "Company") (TSXV:PEC), a company focused on oil and gas exploration, appraisal and development in Portugal, today announced that the non-binding Letter of Intent ("LOI") with an undisclosed party (the "Partner") previously disclosed on March 6, 2012, whereby the Partner would farm in to Porto's rights on certain of the Company's concessions onshore Portugal, including the pre-salt potential on the Aljubarrota-3 concession, has expired without entry into a definitive agreement.
"Deteriorating market conditions following the signing of the non-binding LOI made it very challenging to reach a definitive agreement that would be in the best interests of all parties," said Joseph Ash, President and CEO of Porto Energy Corp. "On that basis, we mutually agreed to allow the LOI to expire without completing and signing a definitive agreement. Porto remains committed to using the Duetag rig stacked on our location to test the pre-salt opportunity. We have secured our drilling location and all the necessary permits and equipment to restart drilling before July 1, 2012. Although I am disappointed that we could not close the deal on the LOI, Porto is in discussions with several companies that are conducting their due diligence and seeking approvals to enter into an agreement to test the pre-salt. We are continuing with those discussions."
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 five concessions in Portugal's Lusitanian Basin totaling 1,444,152 net acres or 5,844 km2. Through its exploration efforts to date, the Company has identified seven major exploration trends over its concessions including unconventional oil and gas resource plays as well as conventional oil and gas targets. 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.
Cautionary Statements
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.
Heath Cleaver - Chief Financial Officer
Phone: 1-713-975-1725
Email: [email protected]
Share this article