THE WOODLANDS, TX, May 6, 2014 /CNW/ - Porto Energy Corp.,
("Porto" or the
"Company") (TSXV:PEC), today announced the Portuguese
government approved the seismic data sales agreement between the
Company and TGS-NOPEC Geophysical Company ASA (OSLO:TGS)
("TGS"). As previously disclosed in its fiscal second
quarter Management Discussion and Analysis ("MD&A")
filed on April 29, 2014, the Company
agreed to terms with TGS for the licensing and marketing of four
sets of survey data including one 3D offshore survey spanning 1,099
square kilometers, two 3D onshore surveys totaling 358 square
kilometers (excluding 160 square kilometers of Aljubarrota 3D
seismic data as it is jointly owned by the Company and its joint
venture partner, PetrĂ³leos de Portugal - Petrogal, S.A. ("Galp")),
and one 24,000 square kilometer aeromagnetic survey. Approval
of the agreement is not guaranteed to bring in immediate
funding. However, in obtaining government approval, TGS can
now begin to market the Company's seismic data to interested
parties. If a sale is consummated, Porto expects to receive the proceeds, less
any fees, from TGS within 30 days of that sale according to the
sales agreement.
"We entered into this agreement with the goal of
extracting maximum value from the Company's geophysical assets,"
said Joseph P. Ash, President and
CEO of Porto Energy. "Each single license for the entire data set
has the potential to bring in up to $1.4
million net to Porto, which
would provide enough funding for the Company to meet its working
capital obligations for 12 months or more while we continue to
market our assets to interested parties. As discussed in our
fiscal second quarter MD&A, we are working to secure a
non-refundable security deposit from interested parties equivalent
to one percent of the principal amount of the previously announced
convertible promissory note financing to support our immediate
working capital needs."
About TGS-NOPEC Geophysical Company
ASA
TGS provides multi-client geoscience data to oil
and gas Exploration and Production companies worldwide. In addition
to extensive global geophysical and geological data libraries that
include multi-client seismic data, magnetic and gravity data,
digital well logs, production data and directional surveys, TGS
also offers advanced processing and imaging services,
interpretation products, permanent reservoir monitoring and data
integration solutions. For more information on TGS visit
http://www.tgs.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 1.6
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.
Cautionary Statements
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.