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 visit http://www.tgs.com/.
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.
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SOURCE: Porto Energy Corp.
Heath Cleaver - Chief Financial Officer