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THE WOODLANDS, TX, March 6, 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 it has signed a non-binding Letter of Intent ("LOI") with an undisclosed party, the ("Partner"), whereby the Partner will 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. Under the terms of the LOI, the Partner will earn a 50% interest in the concessions, comprising approximately 600,000 gross acres (300,000 net to the Partner), in exchange for an aggregate farm-in commitment of up to US$23.0 million in payments and carried costs. The LOI is subject to customary break fees and conditions precedent. If definitive agreements are not entered into by April 30, 2012, the LOI will expire.
"Having a high working interest in each of our concessions provide us with maximum flexibility in the pursuit of partnering opportunities on our broad Portuguese asset base," said Joseph Ash, President and CEO of Porto Energy Corp. "Signing of this LOI demonstrates our ability to advance our joint venture strategy to further unlock our asset potential, increasing shareholder value. It will also allow us to fully fund the drilling of our 3-D imaged pre-salt exploration well by midyear."
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.
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.
For further information:
Heath Cleaver - Chief Financial Officer
Email: [email protected]