Brookwater Ventures Inc.

August 05, 2011 08:00 ET

Brookwater Announces Formation of Special Acquisition Committee

CALGARY, ALBERTA--(Marketwire - Aug. 5, 2011) - Brookwater Ventures Inc. ("Brookwater" or the "Company") (TSX VENTURE:BW) announced today that it has formed a Special Acquisition Committee (the "Committee") to review and approve certain investment, acquisition, and corporate related transactions proposed by the Company's management. As the Company is currently pursuing and evaluating several opportunities to aggressively grow its business, the Committee will assist and spearhead prioritizing these opportunities.

Mr. Stan Bharti, Chairman of the board, commented, "We are excited about a number of current and future prospects under review. Beyond simply growing our asset base through the upcoming 11th Bidding Round of the ANP, there are a number of other opportunities that warrant further assessment. Establishing the Special Acquisition Committee will assist the Company in prioritizing our approach as we continue our work in the weeks and months ahead."

The Acquisition Committee is comprised of current board members and includes:

  • Stan Bharti, President of Forbes & Manhattan and Chairman of the Company's board of directors;
  • Wagner Freire, former senior executive with Petrobras for over 30 years and current Brookwater board member and President of Água Grande Exploração e Produção de Petróleo Ltda., Brookwater's wholly-owned Brazilian subsidiary; and
  • Peter Boot, former senior executive and country manager for ING Bank throughout South America for 15 years and current Brookwater board member.

The Acquisition Committee shall convene periodically and shall have the authority to review and approve merger and acquisition transactions and investment transactions.

Brookwater is also pleased to announce that its Board of Directors has appointed Neil Said as the Corporate Secretary of the Company. Mr. Neil Said is a corporate securities lawyer who works as a legal consultant to various TSX and TSXV Venture listed companies in the mining and oil & gas industries. Mr. Said previously worked as a corporate lawyer at a large Toronto law firm and obtained his Juris Doctor from the University of Toronto and a Bachelor of Business Administration from Wilfrid Laurier University.

The Company also wishes to announce the resignation of Mr. Dan Bruno as Vice President and Corporate Development of the Company. Brookwater's Board of Directors would like to thank Mr. Bruno for his service and contribution to the Company.

About Brookwater:

Brookwater is an emerging oil and gas company with a proven Brazilian management team including members that previously held senior positions within Petróleo Brasileiro S.A – Petrobras. Brookwater is focused on building a portfolio of high impact assets in Brazil and currently holds, through Água Grande Exploração e Produção de Petróleo Ltda. ("Agua Grande"), its wholly owned subsidiary, prospective acreage in the prolific Reconcavo Basin.

Água Grande's senior management possesses significant technical knowledge and operational experience in the Brazilian sedimentary basins and regulatory knowledge of the Brazilian oil and natural gas industry which will provide a significant advantage when evaluating opportunities. Brazil has recently attracted significant interest due to its immense petroleum resource potential across 28 sedimentary basins. Currently only 5% of these basins are under contract, leaving enormous opportunity for future exploration. Brazil's National Council of Energy Policy has announced the 11th Concession Bid Round. Among other opportunities Brookwater is currently evaluating, part of the Company's growth strategy is to evaluate and actively participate in the bidding of concession blocks in this 11th bid round. Bidding is expected to take place in the third quarter of 2011 and will consist of 174 blocks of which 87 are on onshore areas and the other 87 are on offshore areas, covering a total of 122,000 km2.

The Recôncavo Basin is a light oil rich mature basin and has produced 1.9 billion barrels of oil and 400 million boe of gas since the first discovery in the early 1940s. With current production of 63 thousand boe/d and recent discoveries such as the Jandaia field (16 million barrels of volume in place of 42º API oil with current production of 2,700 b/d) this basin is still considered very attractive for investments. Block REC-T-166, in which Água Grande has a 30% working interest, lies just west of the Água Grande field, discovered in 1952, and which still produces 3,000 b/d after delivering over 300 million barrels of 42º API oil.

Through its wholly owned subsidiary, Água Grande, Brookwater will participate in the drilling of one exploration well during the third quarter of 2011 as part of its commitment in the concession of Block REC-T-166. Several low risk exploration targets have been identified on 3D seismic across Block REC T-166.

On behalf of the Board of Directors of BROOKWATER VENTURES INC.

Jason Cho, President & CEO

Forward-looking information

This news release contains forward-looking information relating to the Company's growth and corporate strategy, and other statements that are not historical facts. Forward-looking information relates to management's future outlook and anticipated events or results, and may include statements or information regarding the future plans or prospects of the Company. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward‐looking information, there may be other factors that cause results not to be as anticipated, estimated or intended.

Forward-looking information is subject to certain factors, including risks and uncertainties that could cause actual results to differ materially from what is currently expected. These factors include risks and uncertainties associated with oil and gas exploration, development, exploitation, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources, reliance on key personnel, regulatory risks and delays and other risks and uncertainties discussed in the management discussion and analysis section of the Company's interim and most recent annual financial statement or other reports and filings with the TSX Venture Exchange and applicable Canadian securities regulations. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward‐looking information.

The forward-looking statements contained in this news release are made as of the date of this news release. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Additionally, the Company undertakes no obligation to comment on the expectations of, or statements made by, third parties in respect of the matters discussed above.

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.

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