Greenfields Petroleum Corporation Announces Recent Operational Results
HOUSTON, TEXAS--(Marketwired - July 2, 2013) -
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Greenfields Petroleum Corporation ("Greenfields" or the "Company") (TSX VENTURE:GNF)(TSX VENTURE:GNF.DB), an independent exploration and production company with assets in Azerbaijan, is pleased to announce recent operational results.
June 2013 operating highlights
- The Company's estimated entitlement sales volumes from production for its net interest in the Bahar Project averaged 574 bbl/d and 6,673 mcf/d, or 1,686 boe/d for the month of June 2013 versus 443 bbl/d and 3,405 mcf/d, or 1,011 boe/d, for the quarter ended March 31, 2013. Production of oil and gas has been increasing steadily due to our drilling operations in the Gum Deniz Field and workover operations in the Bahar Gas Field.
- During June 2013, Bahar Energy continued drilling operations on the Gum Deniz 716 well in the central area of the field setting 9-5/8" casing at 2,096 meters. The rig has drilled out the bottom of casing with an 8-3/8" bit and is currently drilling at 2,440 meters. We expect the 716 well to reach target depth within the week. The workover on the 209 well in the Bahar Gas Field continues with perforating and testing zone IX for additional field production. To increase our oil development activities, a crew has been mobilized to begin rigging up and commissioning our second drilling rig, PSG3, on platform 208a in the Gum Deniz Field. We expect to spud the first well on the 208a platform by early September 2013.
- The Bahar 2 Exploration Area 3-D survey processing has been completed. Interpretation is underway and is expected to be completed in Q3 2013.
- The contract for the 200 square kilometer Gum Deniz 3-D seismic was awarded to PGS-Khazar. The contractor has commenced mobilizing the equipment and obtaining the necessary permits to begin seismic acquisition in mid-Q3 2013. The seismic acquisition is expected to take approximately 4-5 months depending on weather and other factors.
- As a result of a recent internal reorganization of the Company and the Company continuing to focus greater attention on the Bahar Project, Greenfields estimates that it will be able to reduce its corporate general and administrative expenses by one third by year-end 2013. The reductions are primarily being realized by eliminating business development activities and relocating some of the technical activities into cost recoverable operating subsidiaries in Azerbaijan.
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.
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.
Note to Oil and Gas Disclosures
Boe may be misleading, particularly if used in isolation. A boe conversion ratio of 6 mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
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