Greenfields Petroleum Corporation Announces Financial Results for the Year-Ended December 31, 2013

HOUSTON, TEXAS--(Marketwired - May 2, 2014) -

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Greenfields Petroleum Corporation ("Greenfields" or the "Company") (TSX VENTURE:GNF), an independent exploration and production company with assets in Azerbaijan, announces financial results for the year-ended December 31, 2013. Except as otherwise indicated, all dollar amounts referenced herein are expressed in United States dollars.

Fourth Quarter and Year-End 2013 Financial Results and Operating Highlights

• The Company's entitlement sales volumes from production for its net interest in the Bahar Project averaged 522 bbl/d and 7,352 mcf/d or 1,747 boe/d in the fourth quarter 2013 and 523 bbl/d and 5,428 mcf/d or 1,428 boe/d for fiscal year 2013, an improvement of 12% over the prior quarter, 53% over the fourth quarter 2012 and 31% over fiscal year 2012 when compared on a barrels of oil equivalent basis.
  
  
• The Company recorded net income of $66,000 and EPS of $0.00 for the fourth quarter 2013 and a net loss of $3.3 million and EPS of ($0.19) for fiscal year 2013 as compared to a net loss of $5.9 million and EPS of ($0.28) in the fourth quarter 2012 and a net loss of $16.1 million and EPS of ($1.04) for fiscal year 2012.
  
  
• Through its interest in Bahar Energy, the Company realized average netback oil prices of $102.10/bbl for the fourth quarter 2013 and $101.28/bbl for fiscal year 2012. Realized gas prices have remained constant during 2013 at $3.96/mcf.
  
  
• The Gum Deniz 774 well commenced drilling on December 12, 2013. At year end 2013, the well was drilling at a total depth of 1,588 meters and subsequently reached total depth of 2,566 meters on January 23, 2104. After testing non-commercial rates in the X reservoir, the well is under evaluation for further testing in the V-VIII reservoirs and/or possible sidetracking.
  
  
• During 2013, the Company completed two separate equity transactions for aggregate gross proceeds of CAD$9.6 million. On June 25, 2013, the Company completed a non-brokered private placement of 2,000,000 Common Shares at a price of CAD$3.40 per Common Share for gross proceeds of CAD$6.8 million or the USD equivalent of $6.5 million. On July 9, 2013, the Company completed a brokered offering of 821,800 Common Shares at a price of CAD$3.40 per Common Share for gross proceeds of approximately CAD$2.8 million or the USD equivalent of $2.65 million.
  
  
• On November 25, 2013, the Company secured a $25 million loan facility through an arm's length third party. Pursuant to the terms of the loan agreement, the Company is entitled to draw up to the aggregate of $25 million in tranches based upon the achievement of certain operational milestones. As at December 31, 2013, the Company had drawn down $5 million of the loan facility.
  
  

Select Financial and Operating Information for the year ended December 31, 2013

The selected information below is from the Greenfields' Management Discussion & Analysis. The Company's complete financial statements as of and for the years ended December 31, 2013 and 2012, 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.

Greenfields Petroleum Corporation

(US$000's,except as noted)		Year ended December 31,
		2013			2012 (4)
Financial
Revenues (1)			2,432			2,737
Net (loss) income			(3,278	)		(16,075	)
Per share, basic and diluted		$	(0.19	)	$	(1.04	)
Capital Items
Cash and cash equivalents			3,068			12,404
Total Assets			49,337			40,560
Working capital (2)			1,734			16,622
Long term loan, convertible debt and Shareholders' equity (3)			46,924			38,327

(1) Revenues for the three months and year ended December 31, 2012 reflect change from proportionate consolidation to equity method of accounting for the Company's investment in Bahar Energy Limited. 2012 financial results have been restated to reflect the change in accounting policy effective January 1, 2013.

(2) The December 31, 2012 working capital balance has been restated to exclude the Company's share of Bahar Energy Limited working capital due to the change to equity method accounting noted above.

(3) Convertible debt is combined with shareholders' equity at December 31, 2013 due to the Company's right to settle this debt by issuing shares.

(4) These figures were restated in accordance with the adoption of IFRS impacting the accounting for the joint venture. See Note 21 of the Audited Consolidated Financial Statements for the year ended December 31, 2013.

Bahar Energy Limited (Joint Venture)

	Total Joint Venture						Company's share
(US$000's,except as noted)	Year ended December 31,
	2013		2012				2013		2012
Financial
Revenues		87,707		71,890				29,233		23,961
Net (loss) income		7,288		(22,907	)			2,429		(7,635	)
Operating
Average Entitlement Sales Volumes (1)
Oil and condensate (bbl/d)		1,570		1,290				523		430
Natural gas (mcf/d)		16,287		11,942				5,428		3,980
Barrel oil equivalent (boe/d)		4,284		3,281				1,428		1,093
Average Oil Price
Oil price ($/bbl)	$	103.40	$	104.35			$	103.40	$	104.35
Net realization price ($/bbl)	$	101.28	$	102.23			$	101.28	$	102.23
Brent oil price ($/bbl)	$	108.51	$	111.64			$	108.51	$	111.64
Natural gas price ($/mcf)	$	3.96	$	3.96			$	3.96	$	3.96
Capital Items
Total Assets		175,503		100,048				58,495		33,346
Total Liabilities		46,784		34,914				15,593		11,637
Net Assets		128,719		65,134				42,902		21,709

(1) Daily volumes represent the Joint Venture's and Company's share of the Contractor Parties entitlement volumes net of 10% compensatory petroleum beginning October 1, 2013 and the government's share of profit petroleum.

"We are very pleased to see the substantial improvements in year-over-year production rates from the ERDPSA and its impact on Bahar Energy's income for 2013. The income improvement is attributable to the higher revenues and savings in operating and administrative expenses. The increases in production and reductions in expenses are clearly the result of a focus on drilling and workover activities in the Gum Deniz Oil and Bahar Gas fields and the organization's efforts to improve its overall cost structure," stated A. Wayne Curzadd, Senior Vice President and Chief Financial Officer of the Greenfields.

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

This press release contains forward-looking statements. More particularly, this press release may include, but is not limited to, statements concerning: increased average production, drilling and completion plans and the expected timing thereof, securing the production and operating period of the Bahar Contract and seismic acquisition. In addition, the use of any of the words "initial, "scheduled", "can", "will", "prior to", "estimate", "anticipate", "believe", "should", "forecast", "future", "continue", "may", "expect", and similar expressions are intended to identify forward-looking statements. The forward-looking statements contained herein are based on certain key expectations and assumptions made by the Company, including, but not limited to, expectations and assumptions concerning the success of optimization and efficiency improvement projects, the availability of capital, current legislation, receipt of required regulatory approval, the success of future drilling and development activities, the performance of existing wells, the performance of new wells, general economic conditions, availability of required equipment and services, weather conditions and prevailing commodity prices. Although the Company 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 the Company 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, changes in legislation affecting the oil and gas industry 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

Barrels Oil Equivalent or "boe" may be misleading, particularly if used in isolation. The volumes disclosed in this press release under the headings "Third Quarter and Year-to-Date 2013 Financial Results and Operating Highlights" and "Operating Highlights and Plans" uses a 5.559 mcf: 1boe conversion ratio as the Bahar Contract (ERDPSA) uses a 5.559 mcf: 1boe conversion ratio to measure total field production in calculating the 6,944 boe production threshold to earn the full 25 year initial term of the Bahar Contract.

The volumes disclosed in this press release under the heading "Selected Information" uses a 6mcf: 1boe, as such is typically used in oil and gas reporting and is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. The Company uses a 6mcf: 1boe ratio to calculate its share of entitlement sales from the Bahar Project for its financial reporting and reserves disclosure, but, for greater clarity, not for the purposes of the information under the headings "Select Financial and Operating Information for the year ended December 31, 2013" in this press release.

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.