Business
Porto Energy Corp. Announces JV Partner Galp Exercising Option to Become Operator of Aljubarrota-3 Concession
THE WOODLANDS, TX, June 6, 2013 /CNW/ - Porto Energy Corp., (" Porto " or the " Compa...
About this update from Peak Discovery Capital Ltd
[{"type":"text","content":"\n\n\nTHE WOODLANDS, TX, June 6, 2013 /CNW/ - Porto Energy Corp., (\"Porto\" or the \"Company\") (TSXV:PEC), a company focused on oil and gas exploration, appraisal\n and development in Portugal, today announced that its joint venture\n partner in the Aljubarrota-3 concession, Petróleos de Portugal -\n Petrogal, S.A. (\"Galp\"), has exercised its option to become the operator of the concession,\n pursuant to the terms of the definitive farmout agreement signed by the\n two companies in June 2012. Assignment of operatorship is subject to\n approval by the Portugese government department, Direcção Geral de\n Energia e Geologia (\"DGEG\").\n\n\n\"Galp's exercise of their option to operate the Aljubarrota-3 concession\n clearly demonstrates their interest and belief in the potential of this\n asset,\" said Joseph P. Ash, President and CEO of Porto.  \"While we\n retain an equal working interest in the concession and expect to\n participate fully in determining the strategic direction of future\n exploration activities; transitioning to a non-operated role will\n provide us with improved financial and operational flexibility going\n forward.\"\n\n\nUnder the terms of the definitive farmout agreement, Galp paid the\n Company $4.3 million in back costs as well as their portion of the\n drilling of the ALC-1 well, approximately $6.15 million, to earn 50% of\n the Company's rights in the Aljubarrota-3 concession which comprises\n approximately 300,000 acres onshore Portugal.  The 50% participation\n extends to all stratigraphic intervals within the concession and was\n approved by the Portuguese government in September 2012.  The two\n companies concluded a joint operating agreement in the first quarter of\n 2013.\n\n\nAbout Porto Energy Corp.\n\n\nPorto Energy Corp. is an international oil and gas company engaged in\n the exploration of crude oil and natural gas in Portugal, including the\n appraisal of a gas discovery.  Through its wholly owned subsidiary,\n Mohave Oil And Gas Corporation (a Texas corporation with branch offices\n in Portugal), the Company holds working interests in seven concessions\n in Portugal's Lusitanian Basin totaling 1.6 million net acres. Through\n its exploration efforts to date, the Company has identified seven major\n exploration trends over its concessions and generated m...