CALGARY, ALBERTA--(Marketwire - Nov. 28, 2011) - Brookwater Ventures Inc. ("Brookwater" or the "Company") (TSX VENTURE:BW) announced today the completion and filing of its fiscal 2011 audited financial statements, for the year ended July 31, 2011. Full financial statements, notes and related Management Discussion and Analysis can be found on the SEDAR profile of the Company at www.sedar.com. As at July 31, 2011, the Company reported $5.4 million of cash and positive working capital of $4.6 million, which is expected to be sufficient to cover upcoming exploration activities on Block REC-T-166. During the year ended July 31, 2011, Brookwater increased its cash on hand as a result of a successful private placement and cash received upon closing the acquisition of Água Grande Exploração e Produção de Petróleo Ltda. ("Agua Grande"), offset by expenditures for operations and corporate expenses.
The acquisition of Agua Grande has provided the Company with exploration acreage in the Reconcavo basin with a 30% working interest in Block REC-T-166 and also establishes a domestically-based oil & gas platform in Brazil. Brookwater will leverage this platform to identify, evaluate and pursue potential farm-in and/or acquisition targets as well as in the upcoming Brazilian National Petroleum Agency ("ANP") bid-round process.
Brookwater also announced today that Wagner Freire has retired from the Company and has been reappointed to the Forbes & Manhattan ("F&M") Advisory Board to focus his attention on energy opportunities for the F&M Group of Companies commencing December 1, 2011. Mr. Freire will continue to serve as a member of the Board of Directors of Brookwater and the Board of Directors has accepted his resignation as President of Agua Grande.
The Company thanks Mr. Freire for his service to Agua Grande and wishes him well in his new position with the F&M Advisory Board. Brookwater has commenced a search for a new President of Agua Grande and expects to provide an update in due course. Brookwater has appointed Jason Cho, currently President and CEO of Brookwater, as interim President of Agua Grande.
About Brookwater:
Brookwater is an emerging oil and gas company with an experienced Brazilian management team. Brookwater is focused on building a portfolio of high impact assets in Brazil and currently holds, through Água Grande, 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. 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, one of the Company's growth strategies is to evaluate and actively participate in the bidding of concession blocks in the 11th bid round. Bidding 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 investment. 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 fourth quarter of 2011 as part of its commitment in the concession of Block 166. Several low risk exploration targets have been identified on 3D seismic across Block 166.
On behalf of the Board of Directors of BROOKWATER VENTURES INC.
Jason Cho, President & CEO
Please refer to the Company's NI 51‐101 compliant technical report on the Block REC‐T‐166 Concession dated December 31, 2010 entitled "Evaluation of the Interests of Brookwater Ventures Inc. in the REC‐T‐166 Block in the Recôncavo Basin Brazil", available on the SEDAR profile of the Company at www.sedar.com.
Information in this press release expressed in barrels of oil equivalent (boes) is derived by converting natural gas to oil in the ratio of six thousand cubic feet (mcf) of natural gas to one barrel (bbl) of oil. Boe may be misleading, particularly if used in isolation. A boe conversion ratio of 5.7 mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
Forward-looking information
This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the financial condition of the Company; the development of Block Rec-T-166; costs associated with Block Rec-T-166; the potential of Block Rec-T-166; statements regarding estimates of petroleum volumes; and statements with respect to the effect of the retirement and appointment of officers of subsidiaries of the Company. Forward looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, geopolitical and social uncertainties; the actual results of exploration activities; regulatory risks; risks inherent in foreign operations; and other risks of the oil and gas industry. Although 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. 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 Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
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.
Contact Information:
Jason Cho
President & CEO
+1 (416) 576 8870
jcho@forbesmanhattan.com