THE WOODLANDS, TX, Dec. 14, 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 its financial results for the year ended August 31, 2012. All amounts are stated in US dollars unless otherwise noted by C$ for Canadian dollars or € for Euros.
Selected Recent Highlights
In 2012 the Company:
- Completed processing of 1,100 km2 3-D seismic acquisition data over the Cabo Mondego-2 and São Pedro de Muel-2 concessions offshore Portugal;
- Concluded a definitive agreement with Sorgenia International B.V., Netherlands ("Sorgenia"), and Rohöl-Aufsuchungs Aktiengesellschaft, Austria ("RAG") to jointly evaluate the unconventional resource potential of the Lower Jurassic (Lias) stratigraphic interval within a portion of Porto's concessions in Portugal;
- Secured a working interest in two new concessions onshore Portugal. The Zambujal and Peniche concessions cover approximately 315,000 and 96,000 acres, respectively, increasing the Company's best estimate P50 risked prospective resources by approximately 72.0 mmboe giving the Company a total of approximately 484 mmboe best estimate P50 risked prospective resources based on NSAI's independent assessment and supplement to their report dated March 23, 2012 with an effective date of March 31, 2012;
- Entered into a definitive farmout agreement, through its wholly-owned subsidiary Mohave Oil and Gas Corporation, with Petróleos de Portugal - Petrogal ("Galp"). Galp will pay the Company approximately US$4.3 million and their proportionate share of the cost of a Presalt well to earn 50% of the Company's rights in the Aljuabarrota-3 concession, comprising approximately 300,000 acres, onshore Portugal; and
- Spudding of the ALC-1 well with Galp carrying Porto for 50% of the well costs, The well reached reached a total measured depth of 3,240 meters and encountered a 300 metre gas column trapped below salt, but did not find sufficient reservoir sands to be a commercial success.
Year Ended August 31, 2012 as compared to the Year Ended August 31, 2011
Revenue during the year ended August 31, 2012, was $21,732 compared with $49,733 for the corresponding year ended August 31, 2011. Revenue is composed primarily of interest income from cash on hand. Whereas the Company has not yet established commercial oil and gas production from the Concessions, its sources of revenue are not of a recurring consistent nature.
General and Administrative Expense ("G&A")
G&A expense decreased by $329,002 from $4,953,596 for the year ended August 31, 2011 to $4,624,594 for the corresponding year 2012. The decrease in G&A expense for the year ended August 31, 2012 was primarily a result of decreased salaries and wages and decreased travel expenses, partially offset by increased consulting fees and increased insurance costs. The year ended August 31, 2011, includes a one-time charge of $246,622 in severance payments to former employees.
Share-based payments expense for the year ended August 31, 2012 was $1,463,740, compared with $2,771,201 for the year ended August 31, 2011. During the year ended August 31, 2011, a total of 11,600,000 options to acquire shares of common stock were issued to officers, directors and employees in accordance with the Company's long-term incentive plan subject to vesting requirements and 1,548,208 options expired due to employment terminations. In October 2011, the Company hired certain contract personnel on a full time basis and as a result, granted 900,000 options to acquire common shares at a strike price of $0.115 per share as part of their long-term incentive package. Each grant has a five year term, expiring on October 1, 2016. The options vest ratably on an annual basis over two years. In December 2011, the Company granted options to acquire up to 3,110,000 common shares of Porto at an exercise price of $0.105 per share. Of the 3,110,000 options, 2,110,000 were granted to its directors and officers. The options have a five year term, expiring on December 14, 2016, and vest over two years (one-half immediately and one-half on the first anniversary of the grant date). In August 2012, the Company issued 1,000,000 options to acquire common shares to a consultant of the Company at a strike price of $0.11 per share. The options vest one-third every six months from the date of grant and have a five year term, expiring on August 23, 2017. There are now options outstanding to purchase a total of 15,660,000 Common Shares of Porto.
Modification of Share Purchase Warrants
In March 2012, the Company received approval from the TSXV to extend the expiry date of 9,275,000 outstanding warrants issued as part of the amalgamation involving the Company and Mohave Exploration and Production Inc. ("Tranche 1"), 1,985,000 outstanding warrants issued in connection with the non-brokered private placement of the Company completed on February 26, 2010 ("Tranche 2") and 5,805,000 outstanding warrants issued in connection with the non-brokered private placement of the Company completed on April 21, 2010 ("Tranche 3") from March 28, 2012 to March 28, 2013. Each whole warrant is exercisable to purchase one common share at an exercise price of $0.50 per share for Tranche 1 and an exercise price of $1.00 per share for each of Tranche 2 and Tranche 3. No other terms of the warrants were amended and none of the warrants are held by insiders. As a result, the Company recognized an expense of approximately $169,976 for the year ended August 31, 2012. The Company did not incur any expense associated with the modification of share purchase warrants during the corresponding period ended August 31, 2011.
Finance expense for the year ended August 31, 2012, was $1,479 as compared to ($2,606) for the comparative period in 2011. Finance expense primarily includes the non-cash accretion of decommissioning obligations for future abandonment costs for prior wells drilled in Portugal for the period and also reflects interest accrued on outstanding payables.
Foreign Currency Translation
Foreign currency translation gains for the year ended August 31, 2012, were $1,486 in comparison to translation gains of $270,206 in the comparative period for 2011. The foreign currency unrealized gains and losses reflect the changing value of the Canadian dollar/Euro versus the US dollar at the respective period ends, in which the Company maintains its accounts.
Depreciation expense of $36,831 was recorded during the year ended August 31, 2012, as compared to $24,894 during the comparative period in 2011. These amounts are largely due to the depreciation of furniture and fixtures.
Impairment on Exploration and Evaluation Assets
Impairments of $81,021,000 were recorded during the year ended August 31, 2012, as a result of impairment reviews on the carrying value of the exploration and evaluation assets at the end of the fourth quarter and the second quarter of 2012. An impairment of $23,594,000 was recorded during the second quarter of 2012 based on an impairment review that was conducted by comparing the carrying value of the Carbonates cash generating unit assets to the estimated recoverable amount of these assets using value in use. Value in use is determined based on a third party evaluation report of our resources using a discount rate of 16%. An additional impairment of $57,427,000 was recorded at August 31, 2012, based on an impairment review that was conducted by comparing the carrying value of the assets using the greater of their value in use or the fair market value. The value in use was determined based on a third party evaluation report of our resources using a discount rate of 26%. The value in use was significantly impacted due to the increased risks associated with the funding requirements necessary to realize and generate future cash flows from all of the Cash Generating Units ("CGU's") within the exploration and evaluation assets. The fair market value of the assets was based on the Company's closing market price of its common stock as of August 31, 2012, adjusted for net working capital items. As a result, it was determined that under fair market value, there was an impairment on the carrying value of all of the CGU's which was recorded against each CGU proportionately.
Net Loss Before Income Taxes and Gain on Settlement of Debt
The Company recorded net losses for the year ended August 31, 2012 of $87,294,402, as compared to $7,427,146 for the comparative period in 2011. As the Company is in the exploration phase of operations, there are currently no oil and natural gas producing properties generating revenues. The net loss for the 2012 year was primarily due to the impairment of exploration and evaluation assets. The Company's net losses for these periods were additionally impacted by general and administrative expenses including salaries, office costs and travel costs in addition to professional fees and share-based payments. The fair value of the share-based payments was a non-cash expense in these periods.
The Company recorded income tax expense of $227,135 on a net loss before income tax of $87,294,402 for the year ended August 31, 2012. During the corresponding period ended August 31, 2011, the Company recorded income tax expense of $2,393,852, on a net loss before income tax of $7,427,146. The difference between the effective tax rate recognized and the blended statutory rates of its various taxing jurisdictions in which the Company operates is primarily due to it applying a valuation allowance for the full amount of its gross future tax asset as it believes, based on the weight of available evidence, that it is more likely than not that the future tax asset will not be realized prior to the expiration of net operating loss carryforwards in various amounts at 2026 through 2032. Net operating loss carryforwards as of August 31, 2012 were approximately $27.9 million.
Gain on Settlement of Debt Expense
The Company did not record any gain on the settlement of debt for the year ended August 31, 2012 compared to $469,279 for the year ended August 31, 2011. During the period ended August 31, 2011, under the terms of the debt settlement agreement of December 2009, the anti-dilution rights, including the right to put 1,400,000 common shares of the Company for $450,000, were terminated. As a result, the Company recorded a gain on the settlement of debt of $469,279 after translation adjustments. The prior period gain was a result of settling outstanding accounts payable and accrued liabilities at discounts to the recorded value through the payment of cash and the issuance of stock in the prior period when the Company was in the process of implementing its reorganization.
Comprehensive Income (Loss)
The Company recorded a comprehensive loss for the year ended August 31, 2012 of $87,521,537, as compared to a comprehensive loss of $9,351,719 for the year ended August 31, 2011. The difference between net loss and comprehensive loss is comprised of the non-recurring gain on the settlement of debt and the provisions for income taxes.
Operational Review and Outlook
(Torres Vedras-3 - 100% working interest)
The SPC-2, the second well in the Company's program to explore the Jurassic Reef prospect, was spud on August 19, 2011 and reached total measured depth at 1,957 meters on September 9, 2011. The SPC-2 targeted a well defined four way closure trap in the Jurassic Reef as delineated by the Company's 120 km2 3-D seismic survey of this area. The well had live and dead oil shows while drilling and good reservoir properties in several limestone and dolomite intervals. A porous interval of dolomite from 1,625 meters to 1,679 meters indicated pay on a petrophysical evaluation of the open hole logs, however, analysis of sidewall cores taken over the interval and additional log evaluation was required to determine if the logged pay over this interval was commercial. Following completion of the analysis of the gathered data the Company determined that the well was gas charged but the presence of a significant amount of carbon dioxide would make it uneconomic to produce. On that basis, the Company elected to plug and abandon the well. Following this result the Company now expects to take time to evaluate the wide array of information gathered on this prospect before making a decision with respect to next steps of its reef exploration program on the western portion of the Torres Vedras concession. Any future focus will likely shift to reef complexes identified by the 240 km2 Montejunto 3-D seismic acquisition along the western part of the Torres Vedras concession.
Contingent Gas Discovery
(Aljubarrota-3 - 42% Working Interest)
The Company commenced re-entry operations on the well on the Aljubarrota-3 concession in central Portugal in May 2011. The well was originally drilled in 2005 to a depth of 2,110 meters as a direct offset to the Company's Alj-2 well that discovered 366 BCF of contingent gas resources in a Jurassic fractured Brenha carbonate formation where it was temporarily abandoned above the gas accumulation due to operational constraints. The Company deepened the well by 450 meters to approximately 2,550 meters and recovered approximately 65.0 meters of conventional core and approximately 430 meters of open hole logs in the Jurassic Brenha gas reservoir. Drilling operations, including acquisition of 60-70 meters of conventional core, took approximately one month. Upon completing the core analysis and concluding initial drilling operations on the SPC-1 and SPC-2 wells in September 2011, the Company then again re-entered the well. The well encountered promising reservoir properties and gas shows. However, it was not able to sustain economic production levels due to water encroachment and, therefore, the Company elected to plug and abandon the well. The water had high concentrations of salt, approximately 175 thousand parts-per-million, indicating the origin of the water encroachment is most likely the salt pack below the bottom of the well and is being introduced by a nearby fault that is approximately 300 meters away. The re-entry encountered normal pressures as well as fractured and matrix porosity identified in the core analysis of the bottom ten meters of the Basal Brenha interval above 2.0%, which is similar when compared to analogous wells. This porosity, however, is also the mechanism that is allowing water to penetrate into the fractures and ultimately is preventing sustained gas production. As a result, more interpretation and analysis is required to further the Company's understanding of the play and the basin in general to see if it can mitigate the risk profile and identify a suitable location for a commercially viable well. Management estimates that the lack of commercial gas rates will reduce the P50 contingent gas resources assigned to the Basal Brenha by approximately 80 billion cubic feet ("BCF"). However, management estimates that the play still has approximately 270 BCF of P50 contingent gas resources remaining in the Upper Brenha and additional resources in the Basal Brenha if the water coming up the fault near the ALJ-2 and wells can be eliminated. Additional work will be performed to understand this tight gas play in order to commercialize the contingent resources.
Prior to the completion of the well through the Basal Brenha, the Company confirmed that the Upper Brenha tight gas section is water free but wellbore limitations prevented completion of this interval.
(Aljubarrota-3 - 42% Working Interest, Zambujal - 72% Working Interest, Cabo Mondego-2 - 70% Working Interest and São Pedro de Muel-2 - 94% Working Interest)
Joint Venture Agreement
In February 2012, the Company entered into a definitive joint venture agreement with Sorgenia and Rag, (together the ("Farm-in Partners"), to jointly evaluate the unconventional resource potential of the Lias stratigraphic interval within Porto's concessions in Portugal. Porto will retain operatorship of the Company's concessions and the joint venture. The area to be jointly evaluated is approximately 450,000 acres.
Under the terms of the agreement, Sorgenia and RAG will each initially secure a 32.33% working interest specifically in the Lias stratigraphic interval in exchange for their participation in the first phase of a three phased work program. Porto will not be required to fund the joint venture until the third phase unless phase one and two encounter cost overruns as discussed below. The first phase, which began in July 2012 and must be completed by December 31, 2012, is focused on developing a comprehensive geophysical and geochemical analysis of the Lias stratigraphic interval. The Farm-in Partners agreed to each fund 50% of the overall costs of the first phase work program with total program costs not to exceed US$1.0 million. The second phase begins immediately following the first and must be completed by August 1, 2014, but is subject to extension. Upon entry into the second phase, the Farm-in Partners will each be deemed to have earned a 32.33% interest in the Lias stratigraphic interval. Second phase activities include the drilling of two deep wells and additional geochemical and geophysical analysis. The costs associated with the two wells will be shared equally between the Farm-in Partners capped at a gross cost of US$10.0 million, net of mobilization and demobilization costs. Other costs associated with the phase two work program will be shared according to the working interest held by each of the parties. Activities under a phase three work program, which is expected to begin immediately following completion of the phase two work program, include the submission of a five-year general development and production plan with further development and production initiatives to follow as necessary. The costs for the third phase work program will be borne by all parties according to their working interest in the JV.
Zambujal and Peniche Concessions
In May 2012, the Company secured working interests in two new concessions, onshore Portugal. The Zambujal and Peniche concessions cover approximately 315,000 and 96,000 acres, respectively. The terms of the concessions provide for an initial exploration period of eight years that expires May 21, 2020. The entire area of each concession is being evaluated by the Porto, Sorgenia and RAG JV as an unconventional oil and gas resource. The addition of these two new concession increases the Company's best estimate P50 risked prospective resources by approximately 25.0 mmboe giving the Company a total of approximately 484 mmboe best estimate P50 risked prospective resources based on Netherland, Sewell & Associates, Inc. independent assessment and supplement to their report dated March 23, 2012 with an effective date of March 31, 2012. However, there is no certainty that any portion of the resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources.
Development and Production Plan Approval
In September 2012, the Company 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.
Additionally, Porto received approval from the DPEP in September 2012 to relinquish 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. 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 portfolio.
(Aljubarrota-3 - 42% Working Interest and Torres Vedras-3 - 100% Working Interest)
In June 2012, the Company entered into a definitive farmout agreement (the "Agreement") with Galp. Galp agreed to pay the Company $4.3 million in back costs in addition to their portion (50%) of the costs to drill of the Alcobaça #1 ("ALC-1") well of approximately $6.15 million to earn 50% of the Company's rights on the Aljuabarrota-3 concession, comprising approximately 300,000 acres, onshore Portugal. The payment of the $4.3 million was subject to conditions precedent, which required that the assignment of interest is to be approved by the Portuguese oil and gas authority, DPEP. The $4.3 million was not recorded in accounts receivable as of the balance sheet date because some of the conditions precedent entitling the Company to the outstanding amount had not yet been met. The approval of the assignment of interest to Galp and the receipt of the $4.3 million occurred in September 2012.
Following the drilling and testing of the ALC-1, Galp has the option to acquire a 25% working interest in each of the Company's other concessions in exchange for payments totaling no more than 25% of Porto's sunk costs in each concession. The Company will remain the operator through the drilling of the ALC-1 well, after which Galp will have the option to become the concession operator.
The Company commenced the drilling of the ALC-1, its first Presalt well in its Aljubarrota-3 concession onshore Portugal under its joint venture with Galp.
Using interpreted 3-D seismic data acquired from the 160 km2 Aljubarrota 3-D seismic survey completed in 2011, the ALC-1 well targeted a large mapped Triassic four-way closure within the Presalt sandstones beneath the gas charged Lower Jurassic ("Lias") stratigraphic interval and is approximately 800 meters high to the ALJ-2 well. Additional shallower targets had also been identified within the mapped four-way closure. The ALC-1 well was drilled to a total depth of approximately 3,000 meters and drilling and testing took approximately 60 days to complete as a result of setting a liner per regulatory requirements. The well penetrated approximately 50 net meters of sand and saw good reservoir properties in several intervals, but much of the sands were near the base of the trapped gas column and as such, were deemed non commercial. The total anticipated gross well cost is anticipated to be approximately $10.3 million for which Galp is carrying Porto on 50% of the total well cost.
3-D Acquisition of Montejunto Anticline
In June 2011, the Company began shooting a 240 km² 3-D seismic program over the Montejunto Anticline on the Torres Vedras-3 Concession. The program targeted the Shallow Jurassic Carbonate, Jurassic Reefs and Presalt Silves and is designed to high-grade prospects, further evaluate the Jurassic Reef Trend and seal potential and define locations for future wells. Acquisition was completed in January 2012. The data from the Montejunto seismic program will be processed and interpreted with results expected by late 2012. The Company is using the data from this program, as well as data from the July 2011 aeromagnetic data survey and has identified drill sites targeting multiple stacked pay intervals including Jurassic Reefs on the western side of the basin, the Presalt, as well as additional shallower targets.
This fourth and final 3-D program has, in total, given the Company more than 1,600 km2 of new data on its concessions and with its completion, fulfilled its seismic obligation under its work program commitments to the Portuguese government. At this time, the Company does not intend to acquire additional seismic.
Seismic Acquisition & Aeromagnetic Survey Results
In early September 2011, the Company completed the acquisition of 1,100 km2 of 3-D seismic data over portions of the Cabo Mondego-2 and São Pedro de Muel-2 concessions offshore Portugal using towed streamer arrays. The seismic acquisition covered the Monte Real Platform Trend which is expected to define exploration well locations in an attempt to attract JV partners. Processing and interpretation of the data is now complete and the Company has confirmed the prospects it had already identified from previous 2-D analysis as well as several new prospects. The Company continues to solicit additional JV partners to fund the appraisal and exploration drilling of these Triassic Presalt clastics and dolomite prospects.
Basin-wide Aeromagnetic Survey
The Company completed a 24,000 km2 aeromagnetic data survey in July 2011 and processing was completed in December 2011. The survey is helping management to locate delineate the boundaries of the Lusitanian Basin, inferring the location of the thickest sedimentary section in order to further the Company's understanding of the regional geology and focus exploration efforts economically.
Letter of Intent
In March 2012, the Company signed a non-binding Letter of Intent ("LOI") with an undisclosed party, (the "Partner"), whereby the Partner would farm in to Porto's rights on certain of the Company's concessions onshore Portugal, including the Presalt potential on the Aljubarrota-3 concession. Under the terms of the LOI, the Partner was to 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. In May 2012, the LOI was allowed to expire due to lack of funding.
2012 Work Program
The Company received approval from the DPEP, for its modified 2012 work program in May 2012. However, following the drilling results in the reef wells as well as the re-entry well, and based on the timing of the interpretation of the recently completed Montejunto 3-D seismic data acquisition, the Company and DPEP agreed to modify the Porto work program commitments going forward, with a near term focus on the evaluation of the Lias stratigraphic interval, which Porto has identified as an unconventional resource throughout its concessions. Under the 2012 work program, the Company committed to drilling 19 shallow wells testing the Lias and two additional deep wells targeting the Presalt and possibly the Aljubarrota gas discovery. All 19 Lias wells were being undertaken as part of the JV with Sorgenia and RAG, for which they will carry Porto paying all of the costs up to $1.0 million. Those wells have since been completed and evaluation is still ongoing. The two deep wells include a Presalt well, the ALC-1 (which has now been drilled), and the Alj-5 well to further evaluate the Aljubarrota gas discovery. The total cost for these wells is expected to be approximately US$14.0 million and are anticipated being funded, in part, by joint venturing efforts. Receipt of the approval from the DPEP ensures that Porto will remain in good standing with the government and will be able to meet its obligations under the concession agreements.
The Company has discovered reservoir, porosity and permeability throughout the basin. It is now in search of geologic traps that provide improved chances of finding hydrocarbons.
To view the Company's Year End August 31, 2012 Consolidated Financial Statements, related Notes to Consolidated Financial Statements, and Management's Discussion and Analysis, please see the Company's annual filings which will be available on www.sedar.com and at www.portoenergy.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 1.3 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.
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 the resources.
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:
Heath Cleaver - Chief Financial Officer