THE WOODLANDS, TX, Sept. 4, 2012 /CNW/ - Porto Energy Corp., ("Porto" or the "Company") (TSXV:PEC), a company focused on oil and gas exploration, appraisal
and development in Portugal, is pleased to announce that it has
received approval from the Portuguese oil and gas authority, Divisão
para a Pesquisa e Exploração de Petróleo ("DPEP"), of its Development and Production Plan (the "Plan") for the Company's concessions onshore Portugal.
The approval of the Plan covers the Company's entire onshore acreage in
Portugal of approximately 1,539,334 acres for a period of five years.
During this upcoming five year term, Porto will be executing a work
program focused on commercializing the Lias resource play in one or
more areas within its concessions. At the end of five years, a
secondary production evaluation will be performed at which time the
concessions may be converted into a 25 year production lease. The
approval of this Plan ensures that the Company is able to progress
towards a timely and organized investment schedule.
"Our relationship with the Portuguese Government remains strong," said
Joseph Ash, President and CEO of Porto. "Their approval of Porto's Plan
evidences their commitment to developing their oil and gas industry and
we are very pleased to be working in partnership with them towards that
Additionally, Porto anticipates relinquishing 147,000 acres (7.5% of
gross acres) of its offshore concession area. All of the relinquished
area is outside of its currently mapped prospects which have been
identified using 3D seismic that the Company acquired in late 2011.
The Company continues to work with DPEP regarding its offshore acreage
and anticipates approval of this plan by the end of September 2012.
Porto is working with Netherland, Sewell & Associates, Inc. on an
independent NI51-101 resource report for its offshore concessions which
will incorporate all of the newly mapped and identified prospects. The
Company plans on using this updated resource report to formally launch
a joint venture process for its offshore concession areas prior to the
end of 2012 in an effort to unlock the value of these assets in its
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 approximately 1.9 million net
acres. 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.
No proved, probable or possible reserves have been assigned by the
Company at this time. Undiscovered resources are those quantities of
oil and gas estimated on a given date to be contained in accumulations
yet to be discovered. Estimates of resources always involve
uncertainty, and the degree of uncertainty can vary widely between
accumulations/projects and over the life of a project. There is no
certainty that it will be commercially viable to produce any portion of
Estimates with respect to resources that may be developed and produced
in the future are often based upon volumetric calculations,
probabilistic methods and upon analogy to similar types of resources,
rather than upon actual production history. Estimates based on these
methods generally are less reliable than those based on actual
production history. Subsequent evaluation of the same resources based
upon production history will result in variations, which may be
material, in the estimated resources. Resource estimates may require
revision based on actual production experience.
Prospective resources are those quantities of petroleum estimated, as of
a given date, to be potentially recoverable from undiscovered
accumulations by application of future development projects.
Best Estimate is considered to be the best estimate of the quantity that
will actually be recovered. It is equally likely that the actual
remaining quantities recovered will be greater or less than the best
estimate. Using probabilistic methods, there should be at least a 50
percent probability (P50) that the quantities actually recovered will
equal or exceed the best estimate.
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:
Porto Energy Corp.
Heath Cleaver - Chief Financial Officer