THE WOODLANDS, TX, June 6, 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 that its joint venture partner in the Aljubarrota-3 concession, Petróleos de Portugal - Petrogal, S.A. ("Galp"), has exercised its option to become the operator of the concession, pursuant to the terms of the definitive farmout agreement signed by the two companies in June 2012. Assignment of operatorship is subject to approval by the Portugese government department, Direcção Geral de Energia e Geologia ("DGEG").
"Galp's exercise of their option to operate the Aljubarrota-3 concession clearly demonstrates their interest and belief in the potential of this asset," said Joseph P. Ash, President and CEO of Porto. "While we retain an equal working interest in the concession and expect to participate fully in determining the strategic direction of future exploration activities; transitioning to a non-operated role will provide us with improved financial and operational flexibility going forward."
Under the terms of the definitive farmout agreement, Galp 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. The 50% participation extends to all stratigraphic intervals within the concession and was approved by the Portuguese government in September 2012. The two companies concluded a joint operating agreement in the first quarter of 2013.
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