Brookwater Ventures Inc.
TSX VENTURE : BW

May 31, 2011 09:00 ET

Brookwater Ventures Provides Business Update

CALGARY, ALBERTA--(Marketwire - May 31, 2011) - Brookwater Ventures Inc. ("Brookwater or the "Company) (TSX VENTURE:BW) is pleased to announce that trading in the securities of the Company has recommenced on TSX Venture Exchange, following the acquisition of Água Grande Exploração e Produção de Petróleo Ltda which currently has two exploration and production blocks in the prolific onshore Recôncavo basin in Brazil.

The Company is the newest venture for the Forbes & Manhattan ("Forbes") group of companies in Brazil, and builds on the successful track record in the mining industry of Brazil over the past decade. Forbes has significant operations in Brazil, with its mining headquarters located in the city of Belo Horizonte in the state of Minas Gerias.

About Brookwater:

Brookwater is an emerging oil and gas company with a proven Brazilian management team 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 two exploration and production blocks in the prolific Recôncavo Basin.

The Company'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. Part of Brookwater's growth strategy is to evaluate and actively participate in the bidding of concession blocks in the 11th bid round.

Through its wholly-owned subsidiary, Água Grande Exploração e Produção de Petróleo Ltda ("Água Grande"), Brookwater will participate in the drilling of one exploration well during the third quarter of 2011 to earn a 30% interest in its first oil & gas exploration and production concession (Block REC-T-166) located in the Recôncavo Basin, onshore Brazil. Several low risk exploration targets have been identified on 3D seismic across Block REC-T-166.

The Recôncavo Basin is a light oil rich mature basin, producing 1.9 billion barrels of oil and 400 million boe of gas since the first discovery in the early forties. With current production of 63 thousands 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 lies just west of the Água Grande field, which still produces at 3,000 b/d after delivering over 300 million barrels of 42º API oil.

The acquisition of Água Grande, which consists of highly skilled and experienced Brazilian geoscientists and engineers, allows Brookwater Ventures Inc. a competitive advantage over most E&P companies trying to build petroleum assets in Brazil. Brookwater's team is currently evaluating acquisition and farm-in opportunities throughout Brazil.

Mr. Stan Bharti, Chairman of the board, commented, "Our Company is extremely well positioned in Brazil. Mr. Wagner Freire, the President of Brazil operations started his career with Petrobras as Chief Geophysicist and progressed to become E&P Managing Director of Petrobras and President of its international division. After retiring from Petrobras, Wagner was founder and CEO of Starfish Oil & Gas S.A., a successful local company and acted as President of the Brazilian Association of Independent Producers from 2006 to 2009. Through our management team Brookwater is poised to play a significant role in the Brazilian oil & gas sector."

A full presentation and corporate website will be made available shortly.

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

Shannon Pohl, President & CEO

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.

This news release may contain forward-looking statements. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors discussed in the management discussion and analysis section of our interim and most recent annual financial statement or other reports and filings with the TSX Venture Exchange and applicable Canadian securities regulations. We do not assume any obligation to update any forward-looking statements.

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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