Greenfields Announces Production Increases at the Bahar ERDPSA License in Azerbaijan
Greenfields Announces Production Increases of 345 bbl/d from the Kick Off of Its Workover and Maintenance Program at the Bahar ERDPSA License in the Offshore South Caspian, Azerbaijan
HOUSTON, TEXAS--(Marketwire - July 19, 2011) -
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAWS.
Greenfields Petroleum Corporation (the "Company" or "Greenfields") (TSX VENTURE:GNF.S), an independent exploration and production company with assets in Azerbaijan, is pleased to report that equipment and services required to undertake the recompletion and maintenance program are now in place to start its Phase 1 work program through its 33.33% affiliate Bahar Energy Limited ("Bahar Energy"). Work early in July on Platform #002 at well #372 resulted in increased oil production, up from 280 bbl/d to 625 bbl/d (99 bbl/d to 208 bbl/d, net to the 33.33% interest of Greenfields, respectively). This increase reflects a more than 20% increase in daily oil production from the Gum Deniz oil field from the initial efforts on well #372. Maintenance work on well #372 was started and completed by Bahar Energy during the first week of July using a refurbished State Oil Company of Azerbaijan ("SOCAR") workover rig.
Currently, equipment is being moved to Platform #450 to undertake downhole recompletion of behind pipe pay in well #464. This represents the first of 35 planned downhole recompletions planned for the Gum Deniz oil field in its Phase 1 work program. It is anticipated that on-site recompletion activities on well #464 will start later this month. Recompletion activities are expected to take approximately 30 days per well. To accelerate the recompletion program in both the Gum Deniz oil field and the Bahar gas field, Bahar Energy has awarded a three-year contract to obtain two new workover rigs. Both new workover rigs are currently expected to be delivered prior to year-end with the first of the two rigs set to arrive in November 2011.
About Greenfields Petroleum Corporation
Greenfields is a junior oil and natural gas corporation focused on the development and production of proven oil and gas reserves principally in the Republic of Azerbaijan. The Company plans to expand its oil and gas assets through further farm-ins, and acquisitions of Production Sharing Agreements from foreign governments containing previously discovered but under developed international oil and gas fields, also known as "greenfields". More information about the Company may be obtained on the Greenfields website at www.greenfields-petroleum.com.
United States Advisory
The securities referred to herein have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") have been offered and sold outside the United States to eligible investors pursuant to Regulation S promulgated under the U.S. Securities Act, and may not be offered, sold, or resold in the United States or to, or for the account of or benefit of, a U.S. Person (as such term is defined in Regulation S under the United States Securities Act) unless the securities are registered under the U.S. Securities Act, or an exemption from the registration requirements of the U.S. Securities Act is available. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any state in the United States in which such offer, solicitation or sale would be unlawful.
Forward Looking Statements
This press release contains forward-looking information that involves substantial known and unknown risks and uncertainties, most of which are beyond the control of Greenfields, including, without limitation, those listed under the headings of "Risk Factors" in Greenfields annual information form, its management information circular and similar headings in the Company's Management's Discussion & Analysis which may be viewed on www.sedar.com. Forward-looking information in this press release includes, but is not limited to, information concerning potential future acquisitions.
Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results, performance or achievements could vary materially from those expressed or implied by the forward-looking information. Accordingly, prospective investors should not place undue reliance on these forward-looking statements. These forward-looking statements are made as of the date of this press release and, other than as required by applicable securities laws, Greenfields does not assume any obligation to update or revise them to reflect new events or circumstances.
Neither the 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.
Greenfields Petroleum Corporation
John W. Harkins
President and Chief Executive Officer