THE WOODLANDS, TX, March 27, 2013 /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 it has entered into a
definitive joint operating agreement ("JOA"), through its wholly-owned
subsidiary, Mohave Oil and Gas Corporation, with Petróleos de Portugal
- Petrogal, S.A. ("Galp") in connection with its June 2012 farmout
agreement relating to the Aljubarrota-3 concession.
In June 2012, the Company entered into a definitive farmout agreement
with Galp whereby they paid the Company $4.3 million in back costs as
well as their portion of the drilling of the ALC-1 well, approximately
$6.15 million, to earn 50% of the Company's rights in the Aljubarrota-3
concession which comprises approximately 300,000 acres onshore
Portugal. Participation in the concession also provides Galp with a
working interest in part of the Company's Lias stratigraphic interval
within the concession. The assignment of interest was approved by the
Portuguese oil and gas authority, Divisão para a Pesquisa e Exploração
de Petróleo ("DPEP") in September 2012. The terms of the JOA are
standard and consistent with the provisions of the 2012 Association of
International Petroleum Negotiators ("AIPN") model.
"Concluding a definitive JOA formalizes our relationship with Galp and
provides a solid foundation on which to proceed," said Joseph P. Ash,
President and CEO of Porto. "Galp's participation provides them a
working interest over a significant portion of our Presalt play in the
basin, a play type they have been very successful exploiting and
developing in Brazil. We welcome their expertise and we anticipate
their exploration team will add valuable experience to our Lias
unconventional resource play as well. This agreement establishes a
clear precedent and will serve as a basis for future operating
agreements with other partners."
The Company is in the final stages of discussions with Sorgenia
International B.V., Netherlands ("Sorgenia"), and Rohöl-Aufsuchungs
Aktiengesellschaft, Austria ("RAG"), with respect to formalizing the
next phase of exploration for the Lias play. The Company anticipates
providing additional updates within the next 30 days.
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 1.3 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