THE WOODLANDS, TX, May 1, 2012 /CNW/ - Porto Energy Corp., ("Porto" or the "Company") (TSXV:PEC), a company focused on oil and gas exploration, appraisal
and development in Portugal, today announced that the non-binding
Letter of Intent ("LOI") with an undisclosed party (the "Partner")
previously disclosed on March 6, 2012, whereby the Partner would farm
in to Porto's rights on certain of the Company's concessions onshore
Portugal, including the pre-salt potential on the Aljubarrota-3
concession, has expired without entry into a definitive agreement.
"Deteriorating market conditions following the signing of the
non-binding LOI made it very challenging to reach a definitive
agreement that would be in the best interests of all parties," said
Joseph Ash, President and CEO of Porto Energy Corp. "On that basis, we
mutually agreed to allow the LOI to expire without completing and
signing a definitive agreement. Porto remains committed to using the
Duetag rig stacked on our location to test the pre-salt opportunity.
We have secured our drilling location and all the necessary permits and
equipment to restart drilling before July 1, 2012. Although I am
disappointed that we could not close the deal on the LOI, Porto is in
discussions with several companies that are conducting their due
diligence and seeking approvals to enter into an agreement to test the
pre-salt. We are continuing with those discussions."
About Porto Energy Corp.
Porto Energy Corp. is an international oil and gas company engaged in
the exploration of crude oil and natural gas in Portugal, including the
appraisal of a gas discovery. Through its wholly owned subsidiary,
Mohave Oil And Gas Corporation (a Texas corporation with branch offices
in Portugal), the Company holds working interests in five concessions
in Portugal's Lusitanian Basin totaling 1,444,152 net acres or 5,844 km2. Through its exploration efforts to date, the Company has identified
seven major exploration trends over its concessions including
unconventional oil and gas resource plays as well as conventional oil
and gas targets. Porto Energy's shares trade on the TSX Venture
Exchange under the ticker symbol "PEC". For more information on Porto
Energy visit www.portoenergy.com.
This press release contains certain forward-looking statements. These
statements relate to future events or the Company's future
performance. All statements other than statements of historical fact
are forward-looking statements. The use of any of the words
"anticipate", "plan", "continue", "estimate", "expect", "may", "will",
"project", "should", "believe", "predict" and "potential" and similar
expressions are intended to identify forward-looking statements. These
statements involve known and unknown risks, uncertainties and other
factors that may cause actual results or events to differ materially
from those anticipated in such forward-looking statements. No assurance
can be given that these expectations will prove to be correct and such
forward-looking statements should not be unduly relied upon. These
forward-looking statements are made as of the date of this press
release and the Company does not undertake to update any
forward-looking statements that are contained in this press release,
except in accordance with applicable securities laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
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