GeoGlobal Resources Inc.
NYSE Amex : GGR

GeoGlobal Resources Inc.

June 21, 2010 17:14 ET

Corrected Press Release: GeoGlobal Announces Award of Oil & Gas Licenses in Israel

CALGARY, ALBERTA--(Marketwire - June 21, 2010) - GeoGlobal Resources Inc. (GeoGlobal or the Company) (NYSE Amex:GGR) announced on June 18, 2010 that the Israel Ministry of National Infrastructure (MNI) approved the transfer and registration to a consortium in which we have a 5% interest of two deepwater offshore licenses known as 347 "Mira" and 348 "Sara." However, certain of the consortium interests stated within that press release were quoted incorrectly.

The Mira and Sara licenses are correctly held by a consortium of owners comprising of Emanuelle Energy Ltd. (24.161% participating interest) Emmanuelle Energy – Gas and Oil Explorations Limited Partnership (19.161% participating interest), Modiin Energy – Limited Partnership (19.282% participating interest), I.P.C. Oil and Gas (Israel), Limited Partnership (13.609% participating interest), The Israel Land Development Company Ltd. (5% participating interest), IDB Development Corporation Ltd. (5% participating interest), Blue Water Oil & Gas Exploration Ltd. (8.787% participating interest), and our wholly owned subsidiary, GeoGlobal Resources (India) Inc. (5% participating interest and Operator).

About GeoGlobal

GeoGlobal Resources Inc., headquartered in Calgary, Alberta, Canada, is a US publicly traded oil and gas company, which, through its subsidiaries, is engaged in the pursuit of petroleum and natural gas through exploration and development in India and Israel. The Company has been focused on the development of high potential exploration targets in the Krishna Godavari, Cambay, Deccan Syneclise, and Rajasthan basin areas in India.

Cautionary Statement to Investors

This press release contains statements which constitute forward-looking statements within the meaning of the US Private Securities Litigation Reform Act of 1995, including statements regarding the plans, intentions, beliefs and current expectations of GeoGlobal Resources Inc., its directors, or its officers with respect to the oil and gas exploration, development and drilling activities being conducted and intended to be conducted and the outcome of those activities on the exploration blocks in which the Company has an interest. The company updates forward-looking information related to operations, production and capital spending on a quarterly basis and updates reserves, if any, on an annual basis.

The Company's forward looking statements include, among others, its statements and estimates as to:

  •  the likelihood that recoverable hydrocarbon reserves may exist in the geographic areas in which the Company has an interest and the quantity, if any, of those reserves and when, if ever, the Company may realize revenues from any reserves that are established,
  •  the cost and likelihood of success of the parties in fulfilling the work commitments under the production sharing and other contracts to which the Company is a party,
  •  the timing of activities under the production sharing and other contracts and the ability of the related work commitments to be fulfilled and completed within the times contemplated by the production sharing and other contracts,
  •  the availability of drilling rigs, personnel and other services and equipment at acceptable and reasonable prices to fulfill the work commitments,
  •  the ability of those drilling rigs to perform to meet expectations in the temperature, pressure and depth conditions to which they are subjected,
  • the ability of the operator under the production sharing and other contracts to complete successful wells and to market and deliver any hydrocarbons produced, and
  • the availability of funds in the amounts required and at the times required to fulfill the Company's participation interest obligations in pursuing these exploration activities and the Company's ability to obtain in a timely manner all required consents, waivers and extensions from a governmental regulatory body as and when required to maintain compliance with the Company's production sharing and other contract.

There can be no assurance as to the outcome of these activities that are described as forward looking. Investors are cautioned that any such forward-looking statements are not guarantees of the success of the Company's oil and gas exploration, development and drilling activities or the commercially productive success of any of its wells, all of which involve risks and uncertainties. The exploration blocks in which the Company has an interest are highly speculative exploration opportunities and pursuing the development of the exploration blocks involves material risks to the Company and its investors. Additional risks and uncertainties may arise out of seeking to do business overseas where political and other world events may disrupt the Company's plans, intentions and expectations. There can be no assurance that GSPC may not be successful in its efforts to obtain payment from the Company on account of exploration costs it has expended on the KG Offshore Block for which it asserts the Company is liable or that efforts to resolve the differences between the Company and GSPC relating to this issue can be resolved amicably. The Company's PSCs relating to its India exploration blocks provide that by the end of each phase of exploration, the contracting parties shall have fulfilled certain specified minimum work commitments. The PSCs also have provisions for termination of the PSC on account of various reasons specified therein including material breach of the contract. This failure to timely complete the minimum work commitment may be deemed to constitute such a breach. The termination of a PSC by the GOI would result in the loss of the Company's interest in the PSC other than contract areas of the PSC determined to encompass "commercial discoveries". In the event a PSC is terminated by the GOI, or in the event the work program is not fulfilled by the end of the relevant exploration phase, the PSC provides that each party to the PSC is to pay to the GOI its participating interest share of an amount which is equal to the amount that would be required to complete the minimum work program for that phase. Although GSPC, on behalf of the contracting parties, is seeking relief under GOI procedures from the consequences of failure to timely complete these minimum work commitments, there can be no assurance that these efforts will be successful in that regard.

Additional important risk factors are described in the Company's periodic reports filed with the Securities and Exchange Commission, including the Company's annual report on Form 10-K and quarterly reports on Form 10-Q. The filings may be viewed at http://www.sec.gov and www.sedar.com

Contact Information

  • GeoGlobal Resources Inc.
    Allan J. Kent
    Executive VP and CFO
    +1 403 777-9253
    or
    GeoGlobal Resources Inc.
    Carla Boland
    Investor Relations and Corporate Affairs
    +1 403 777-9253
    +1 403 777-9199 (FAX)
    info@geoglobal.com
    www.geoglobal.com
    or
    The Equicom Group
    Dave Feick
    Managing Director, Western Canada
    +1 403 218-2839
    +1 403 218-2830 (FAX)
    dfeick@equicomgroup.com