Business
Porto Energy Corp. Enters Into Definitive JV Agreement to Exploit Tight-Oil Shale Play
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About this update from Peak Discovery Capital Ltd
[{"type":"text","content":"\n\n\n\n\n\nNOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN\n THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY\n CONSTITUTE A VIOLATION OF U.S. SECURITIES LAWS\n\n\nTHE WOODLANDS, TX, March 1, 2012 /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 it has entered into a\n definitive joint venture agreement with Sorgenia International B.V.,\n Netherlands (\"Sorgenia\"), and Rohöl-Aufsuchungs Aktiengesellschaft,\n Austria (\"RAG\"), (together the (\"Farm-in Partners\"), to jointly\n evaluate the unconventional resource potential of the Lower Jurassic\n (Lias) stratigraphic interval within Porto's concessions in\n Portugal. Porto will retain operatorship of the Company's concessions\n and the joint venture. The area to be jointly evaluated is\n approximately 450,000 acres.  The Lias stratigraphic interval is being\n pursued as an unconventional resource throughout Europe.\n\n\nUnder the terms of the agreement, Sorgenia and RAG will each initially\n secure a 32.33% working interest specifically in the Lias interval in\n exchange for their participation in the first phase of a three phased\n work program. Porto will not be required to fund the joint venture\n until the third phase unless phase one and two encounter cost overruns\n as discussed below.  The first phase, which must be completed by\n December 31, 2012, is focused on developing a comprehensive geophysical\n and geochemical analysis of the Lias interval. The Farm-in Partners\n will each fund 50% of the overall costs of the first phase work program\n with total program costs not to exceed US$1.0 million. The second phase\n will begin immediately following the first and must be completed by\n August 1, 2014, but is subject to extension. Upon entry into the second\n phase, the Farm-in Partners will each be deemed to have earned a 32.33%\n interest in the Lias interval. Second phase activities include the\n drilling of two deep wells and additional geochemical and geophysical\n analysis. The costs associated with the two wells will be shared\n equally between the Farm-in Partners capped at a gross cost of US$10.0\n million, net of mobilization and demobilization costs. Other costs\n associat...