THE WOODLANDS, TX, July 2, 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 the Portugese government department, Direcção Geral de Energia e Geologia ("DGEG") has approved the Company's 2013 work program.
The 2013 work program includes drilling one deep well (terminal depth greater than 3,000 metres) and possibly one horizontal well depending on the deep well results, both within the Lias interval; drilling of up to seven stratigraphic wells to advance the exploration and development of the Lias stratigraphic interval; the acquisition of 150 km of 2-D seismic data onshore that may also benefit the offshore prospects; and further acquisition and analysis of geologic data to expand the Company's understanding of the basin in general. The total estimated cost of the 2013 program is expected to be approximately $22.4 million and is anticipated to be funded in part by Galp through their 50% working interest in the Aljubarrota-3 Concession and through Porto's joint venture marketing efforts. A new bond is expected to be put in place based on these 2013 work program commitments.
"We look forward to working with Galp over the coming months as they take over operatorship of the Aljubarrota-3 concession and help to carry out the drilling of a deep well at Aljubarrota which we consider to be the most essential piece of the 2013 work program," said Joseph P. Ash, President and CEO of Porto. "This is also an important milestone for Porto as we mark the successful conclusion of our 2012 work program which provides for the release of the Company's fully collateralized $2.0 million bond."
The Company is continuing to market its Portuguese assets through an ongoing farm-out initiative. Currently, several parties are actively conducting due diligence and Porto anticipates providing an update in due course.
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