Brownstone Ventures Inc.

Brownstone Ventures Inc.

December 16, 2010 10:00 ET

Brownstone Completes Initial Testing Operations and Begins Preparations for Long Term Production Testing of the Canagua-1 Well in Colombia

TORONTO, ONTARIO--(Marketwire - Dec. 16, 2010) - Brownstone Ventures Inc. (TSX VENTURE:BWN) ("Brownstone") and its partners, including Quetzal Energy Ltd. (TSX VENTURE:QEI) ("Quetzal"), have initiated the process of obtaining permission to commence a long term testing program for the Canaguay – 1 well oil discovery on the Canaguaro Block in Colombia.

Brownstone has been advised that long term production testing of a 5 foot perforated interval of the Lower Mirador sandstone from 14,297 – 14,292 feet, is expected to begin as soon as permission is granted by the Colombian Ministry of Mines and Energy. This interval averaged 2,225 bopd of 20.7 degree API oil during DST #5. The oil producing sandstone is interpreted as being approximately 30 feet thick.

The partners anticipate that permission to conduct the long term production test will be granted in 60 to 90 days. In the intervening period, work will begin to source and install the required production equipment, contract the trucks needed to haul the oil to the delivery point and negotiate an oil sales contract.

At this time, Brownstone has been advised that during the long term production test the well will be produced at rates in excess of 2,000 bopd, with actual rates being determined by actual well performance and good engineering practices. The operator plans to install an electrical submersible pump in the well so as to have the ability to control production rates during the long term test and afterward during sustained production. Pressure information, obtained during initial testing, indicates the well may be capable of producing at rates in excess of 4,000 bbls per day.

On December 3, 2010, the official operator of the Canaguaro block made exploration discovery declarations to the ANH (Agencia Nacional de Hidrocarburos / National Hydrocarbons Agency), for the Mirador and Une Formations in the Canaguay – 1 well.

Canaguay-1: Cased hole Drill Stem Test Summary

DST #6, Upper Mirador, perforated 14,229 – 14,249 ft and 14,256 – 14,262, 26 ft: The perforated interval produced 100% very fresh water, with an average salinity of 516 parts per million, at rates in excess of 2,000 bbls per day. The presence of very fresh water in the Upper Mirador exemplifies the challenges of well log interpretation; both fresh water and oil are electrically resistive.

DST #7, Mirador, perforated 14,340 – 14,345 and 14,350 – 14,355 ft, 10 ft: The perforated interval produced 100% water, with an average salinity of 21,700 parts per million, at rates in excess of 2,000 bbls per day. A small quantity of tar was recovered at the end of the test.

Brownstone is earning a 25% working interest, together with Quetzal who is the acting operator and has a 25% working interest in the Canaguaro Block. 

About Brownstone 

Brownstone Ventures Inc. is a Canadian-based, energy focused company with equity interests and direct interests in oil and gas exploration projects, including working interests in almost 300,000 acres in the Piceance/Uinta Basins of Colorado and Utah; 253,000 acres in Rio Negro, Argentina; interests in several projects in Brazil; a 50% interest in approximately 300,000 hectares in the Quėbec Lowlands; a 15% participating interest in several off-shore Israel oil and gas blocks; and is earning interests (14-35%) in 4 Colombian blocks in the Llanos basin. For additional information, please see Brownstone's website:

This news release contains forward-looking information and forward-looking statements within the meaning of applicable securities laws (together, "forward-looking information"). The use of any of the words "expect", "anticipate", "continue", "estimate", "believe", "plans", "intends", "confident", "may", "objective", "ongoing", "will", "should", "project", "should" and similar expressions are intended to identify forward-looking information.

The forward-looking information is based on certain key expectations and assumptions made by Brownstone, including expectations and assumptions concerning the operational results in Colombia. Although Brownstone believes that the expectations and assumptions on which the forward-looking information are based are reasonable, undue reliance should not be placed on the forward-looking information because Brownstone can give no assurance that they will prove to be correct.

Since forward-looking information addresses future events and conditions, by its very nature it involves inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the inherent risks involved in the exploration and development of oil and gas properties, the uncertainties involved in interpreting drilling results and other geological data, uncertainties relating to fluctuating oil and gas prices, the possibility of cost overruns or unanticipated costs and expenses and other factors including unforeseen delays. Anticipated exploration and development plans relating to Brownstone's properties are subject to change.

The foregoing list of assumptions, risks and uncertainties is not exhaustive. The forward-looking information contained in this press release is made as of the date hereof and Brownstone undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

Neither 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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