THE WOODLANDS, TX, Sept. 4, 2012 /CNW/ - Porto Energy Corp., ("Porto" or the "Company") (TSXV:PEC), a company focused on oil and gas exploration, appraisal and development in Portugal, is pleased to announce that it has 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. The approval of this Plan ensures that the Company is able to progress towards a timely and organized investment schedule.
"Our relationship with the Portuguese Government remains strong," said Joseph Ash, President and CEO of Porto. "Their approval of Porto's Plan evidences their commitment to developing their oil and gas industry and we are very pleased to be working in partnership with them towards that end."
Additionally, Porto anticipates relinquishing 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. The Company continues to work with DPEP regarding its offshore acreage and anticipates approval of this plan by the end of September 2012. 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.
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.
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.
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Porto Energy Corp.
Heath Cleaver - Chief Financial Officer