THE WOODLANDS, TX, May 24, 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 secured a 100% working interest 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 International B.V., Netherlands ("Sorgenia"), and Rohöl-Aufsuchungs Aktiengesellschaft, Austria ("RAG") joint venture as an unconventional oil and gas resource. With the addition of these new concessions, the Company holds working interests in more than 1.9 million net acres in Portugal.
The Company today also announced it received approval from the Portuguese oil and gas authority, Divisão para a Pesquisa e Exploração de Petróleo ("DPEP"), for its modified 2012 work program. The Company finished approximately 82% of its 2011 work program. However, following the drilling results in the reef wells as well as the ALJ-4 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 will drill 19 shallow wells testing the Lias and two additional deep wells targeting the pre-salt and possibly the Aljubarrota gas discovery. All 19 Lias wells are being undertaken as part of the JV with Sorgenia/RAG, for which they will carry Porto. The two deep wells include a pre-salt well, the Alcobaca #1 and, depending on the results of that initial well, 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.
"We have consolidated a significant and attractive land position in central Portugal with a focus on a range of play types," said Joseph Ash, President and CEO of Porto Energy Corp. "We continue to work closely with the Portuguese government and this new program will allow us to focus on the Lias unconventional play as well as finalize our JV partner negotiations in the near term which, if concluded successfully, will provide working capital to drill a pre-salt well. In addition we continue to evaluate a series of JV opportunities that will ultimately allow us to further unlock the asset value of our emerging pre-salt play as well as other play types."
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 approximately 1.9 million net acres. 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