HOUSTON, TEXAS--(Marketwire - Aug. 29, 2012) -

NOT 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 "Corporation" or "Greenfields") (TSX VENTURE:GNF) (TSX VENTURE:GNF.DB), an independent exploration and production company with producing assets in Azerbaijan, announces its financial results for the second quarter of 2012.

Second quarter 2012 operating and financial highlights

• The Corporation's entitlement sales volumes from production for its net interest in the Bahar ERDPSA averaged 442 bbl/d and 3,880 mcf/d or 1,089 boe/d in the quarter and 389 bbl/d and 3,889 mcf/d or 1,037 boe/d year-to-date.

• Through its interest in Bahar Energy, the Corporation realized average oil prices of $97.44/bbl for the quarter and $102.36/bbl year-to-date. Realized gas prices have remained constant during 2012 at $3.96/mcf.

• On May 30, 2012 the Corporation issued CAD $23.7 million of convertible unsecured subordinated debentures (USD$22.97 million). The Debentures carry a 9.0% annual rate of interest from the date of issue with interest payable semi-annually in arrears on May 31 and November 30 of each year starting on November 30, 2012 and will mature and be repayable on May 31, 2017. The net proceeds of the Offering will be used to fund the workover and drilling program in Gum Deniz Oil Field and Bahar Gas Field, and for general corporate and working capital purposes.

Operating highlights and plans

• Work activity during the second quarter focused on production optimization and preparation for drilling and workover activity.

• Well maintain and recompletion activities continued during the quarter using Soviet-era rigs contracted from SOCAR. The workovers have served to maintain and slightly improve field production levels until new wells can be added for increased production. Well service interventions, selected workovers, and recompletions will continue to be performed using these rigs which are suitable and economical for less challenging work. Two wells were recompleted into new zones providing an estimated 120 bbl/d increase in production.

• Two new Western-style rigs have arrived in Baku for work on the Bahar Project. These rigs are designed for the operational requirements of the Gum Deniz and Bahar fields and are under three-year contracts. During the second quarter 2012, the rigs were being prepared for mobilization, installation and commissioning in the third quarter. The rig designed for drilling will initially operate from Platform 2 in the Gum Deniz oil field and the workover rig from Platform 196 in the Bahar gas field.

• To accommodate rig operations on existing platforms, significant modifications had to be made. The existing sub-structures were removed, pipelines were reconfigured to accommodate the rig footprint and pile caps, skid rails and reinforcing deck plates were installed. The new rigs are currently being mobilized to the platforms for installation and commissioning.

• The drilling rig assigned to the Gum Deniz field for platform work will drill development wells in the under-developed northern area of the Gum Deniz field. One or two wells are expected to be drilled with this rig in 2012 with drilling activity to continue into 2013 and beyond.

• The workover rig assigned to the Bahar field (Platform-196) will perform workovers to repair and recomplete gas-condensate wells that have, in most cases, been shut in for years due to operational difficulties. These wells are believed to have significant potential in untested zones behind-pipe. Two to three recompletions in the Bahar field are now expected to be performed in 2012.

• Subsurface evaluation in the northern area of Gum Deniz field identified a northern extension of the field, which is believed to be undrained of hydrocarbons. This area is attractive because it can be drilled from Gum Island using a land-based rig. Land rigs are less expensive to operate and readily available. BEOC has contracted for the Great Wall 88 rig and spudded the first well on August 20^th, 2012. It is anticipated that the well will yield early production and reserves growth, and its success could lead to multiple new drilling targets in the northern extension.

• The Gum Deniz field development plan includes a total of 23 new wells in the northern area of the field. These wells will be drilled from existing platforms and island locations. A total of 60 wells are planned to be drilled in the south Gum Deniz field on new platforms presently in the design stage. Additional drilling rigs will be necessary to complete this program and rig options are now under review.

• Two seismic data acquisition programs, the 2D in the Bahar and Gum Deniz fields and the 3D in the Bahar-2 exploration area and southern portion of the Bahar field, are expected to be completed in 2012. After delays related to vessel suitability and weather, the 140-kilometer 2D project was completed in April 2012. The data quality is good and processing was completed in June. Interpretation is underway and is targeted for completion by the end of the third quarter 2012.

• The 3D project commenced in June 2011 and after acquiring 45 square kilometers of 3D data, the work was suspended in February 2012 due to bad winter weather conditions. Acquisition recommenced May 7, 2012. The completion of the acquisition program is targeted for the end of the third quarter. Processing and interpretation will follow during the fourth quarter. If the interpretation confirms an attractive exploration prospect in the Bahar-2 exploration area, Bahar Energy will develop an appropriate drilling strategy to evaluate the prospect. Drilling in the Bahar-2 area could occur in late 2013 or early 2014.

• During 2012 Bahar Energy has targeted drilling 4 wells in the Gum Deniz field and recompleting 16 wells in Gum Deniz and Bahar fields. The drilling and recompletion programs will continue into 2013 and beyond, and include a total of 83 new wells in the Gum Deniz field and 8 in the Bahar field. Total planned recompletions include 29 in the Gum Deniz field and 40 in the Bahar field.

Selected Information

The selected information below is from the Greenfields' Management Discussion & Analysis. The Corporation's complete financial statements as of and for the three and six months ended June 30, 2012 and 2011, with the notes thereto and the related Management's Discussion & Analysis can be found either on Greenfields' website at www.Greenfields-Petroleum.com or on SEDAR at www.sedar.com. All amounts below are in thousands of US dollars unless otherwise noted.

About Greenfields Petroleum Corporation

Greenfields is a junior oil and natural gas company focused on the development and production of proven oil and gas reserves principally in the Republic of Azerbaijan. The Corporation 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 Corporation may be obtained on the Greenfields website at www.greenfields-petroleum.com.

Forward Looking Statements

The information and statements in this news release contains certain forward-looking information. This forward-looking information relates to future events or Greenfields' future performance. In particular, this document contains forward-looking information and statements regarding: (i) the completion of the Offering and the issuance of the Debentures, (ii) the expected closing date of the Offering; (iii) the use of proceeds of the Offering; and (iv) future capital expenditures and projects. All statements other than statements of historical fact may be forward-looking information. This forward-looking information is subject to certain risks and uncertainties and may be based on assumptions that could cause actual results to differ materially from those anticipated or implied in the forward-looking information. The outcome and timing of the proposed Offering, as well as the Corporation's actual results, performance or achievement could differ materially from those expressed in, or implied by, such forward-looking information and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking information will transpire or occur or, if any of them do, what benefits that the Corporation will derive from them. 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. The Corporation's forward-looking information is expressly qualified in its entirety by this cautionary statement. These forward-looking statements are made as of the date of this press release and, except as required by law, the Corporation undertakes no obligation to publicly update or revise any forward-looking information.

This news release does not constitute an offer to sell or the solicitation of an offer to buy any securities of Greenfields in the United States. The Debentures described in this news release (and any common shares of Greenfields issued upon the conversion, redemption or maturity of the Debentures) have not been and will not be registered under the United States Securities Act of 1933, as amended, or the securities laws of any state and may not be offered, sold or delivered in the United States absent an exemption from registration.