Brookwater Ventures Inc.
TSX VENTURE : BW

Brookwater Ventures Inc.

June 29, 2012 20:21 ET

Brookwater Receives Notice of Default

CALGARY, ALBERTA--(Marketwire - June 29, 2012) - Brookwater Ventures Inc. ("Brookwater or the "Company) (TSX VENTURE:BW) announces that its wholly owned subsidiary, Água Grande Exploração e Produção de Petróleo Ltda., has been issued a notice of default from the operator of Block 166 in the Recôncavo Basin in Brazil ("Block 166") for its failure to pay outstanding cash calls related to the farmout agreement and joint operating agreement ("JOA") within the period of time specified under the JOA.

Under the terms of the JOA, Brookwater has 60 days to remedy the default by paying the full amount of the outstanding balance to the operator. In the event that the default continues for more than 60 days, the operator has the option to require that Brookwater withdraw its interest in the JOA and Block 166. Brookwater is working with the operator to resolve the default and satisfy the outstanding cash calls.

About Brookwater:

Brookwater Ventures Inc. is a Canadian independent oil exploration company focused on growing its asset base primarily in Brazil. The Company believes that a tremendous opportunity exists in Brazil, where only approximately 6% of the sedimentary basins have been titled for exploration and development. The country remains underexploited and the Company believes that to capitalize on these opportunities requires investing in and leveraging a domestic team with basin knowledge, technical expertise and a network of relationships to optimize risk adjusted returns.

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 default notice received from the operator of Block 166; the potential withdrawal by Brookwater of its interest in Block 166; and 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 forwardlooking 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 forwardlooking 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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