Greenfields Announces First Quarter Results

Greenfields Petroleum Corporation Announces Financial Results for the Quarter Ended March 31, 2012 and Financial and Operations Update

HOUSTON, TEXAS--(Marketwire - May 30, 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 "Company" or "Greenfields") (TSX VENTURE:GNF), an independent exploration and production company with producing assets in Azerbaijan, announces its financial results for the first quarter of 2012.

• The Company's entitlement sales volumes from production for its net interest in the Bahar ERDPSA averaged 335 bbl/d and 3,899 mcf/d or 985 boe/d in the quarter.
• Through its interest in Bahar Energy, the Company realized average oil and gas prices of $108.97 per barrel and $3.96 per mcf in the quarter.
• A total of 12 workovers were conducted consisting of 9 maintenance operations and 3 recompletions. Workover and rehabilitation operations will continue throughout 2012.

• The Company announced earlier today that it had closed its previously announced public offering of 9.0% convertible unsecured subordinated debentures of the Company (the "Debentures") for aggregate gross proceeds of $23,725,000 (the "Offering"). Pursuant to the Offering, Greenfields issued $23,725,000 aggregate principal amount of Debentures at a price of $1,000 per Debenture. The maturity date of the Debentures is May 31, 2017.
• During the next twelve months Bahar Energy will continue work related to construction and upgrades of facilities. Areas of focus include platform design and construction, oil and gas processing facility upgrades, pipeline replacement, water disposal, electric power line installation, support infrastructure and safety monitoring. During the quarter the topsides on Platform 2 and 196 were removed. Pile caps and deck reinforcement plates have been fabricated and are now being installed. Once installation is complete, these platforms will be ready for rig mobilization.
• Two new Western-style rigs arrived in Baku in April and May. These rigs are designed for the operational requirements of the Gum Deniz and Bahar fields. The rigs are undergoing the process of commissioning, mobilization and installation. The rigs will initially operate from Platform 2 in the Gum Deniz oil field and Platform 196 in the Bahar gas field. To accommodate rig operations, significant modifications were made to these platforms. Rig operations are expected to start in June.
  
  The workover rig assigned to the Bahar field will work on recompleting gas wells that have, in most cases, been shut in due to operational difficulties. Five wells are expected to be recompleted in the Bahar field in 2012.
  
  The rig assigned to the Gum Deniz field will be engaged in drilling development wells in the under-developed northern area of the Gum Deniz field. The rig is being upgraded for drilling by adding a topdrive, larger mud tanks and 1300 horsepower drilling mud pumps. At least four wells are expected to be drilled in 2012. The field development plan includes a total of 23 wells in north Gum Deniz field, which will be drilled from existing platforms, and a total of 60 wells which will be drilled in the south Gum Deniz field on new platforms presently in the design stage.
• Two seismic data acquisition programs, the 2D in the Gum Deniz field and the 3D in the Bahar-2 exploration area, 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. Processing of the data is expected to be completed by the end of the second quarter 2012.
  
  The 3D project is under way. The completion of the acquisition program is expected to take approximately 2 months after which the data will be processed and interpreted. 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.

Selected Information

The selected information below is from the Greenfields' Management Discussion & Analysis for the three months ended March 31, 2012. The Company's complete financial statements as of and for the three months ended March 31, 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 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.

Forward Looking Statements

The forward-looking statements contained in this press release are based on certain key expectations and assumptions made by Greenfields. Although Greenfields believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Greenfields can give no assurance that they will prove to be correct.

Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties most of which are beyond the control of Greenfields. 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. These risks include, but are not limited to, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety, political and environmental risks), commodity price and exchange rate fluctuations and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. Additional risk factors can be found under the heading "Risk Factors" in Greenfields' Annual Information Form and similar headings in Greenfields' Management's Discussion & Analysis which may be viewed on www.sedar.com.

The forward-looking statements contained in this press release are made as of the date hereof and Greenfields undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws. The Company's forward-looking information is expressly qualified in its entirety by this cautionary statement.

Notes to oil and gas disclosures

BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

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.

Contact Information

• Greenfields Petroleum Corporation
  John W. Harkins
  Chief Executive Officer
  (832) 234-0800
  
  Greenfields Petroleum Corporation
  David G. Gullickson
  Chief Financial Officer
  (832) 234-0800
  
  Greenfields Petroleum Corporation
  Robin Cook
  CHF Senior Account Manager
  (416) 868-1079 x 228
  info@greenfieldspetroleum.com
  www.greenfields-petroleum.com