Brownstone Energy Inc.
TSX VENTURE : BWN

Brownstone Energy Inc.

March 18, 2015 13:21 ET

Brownstone Energy Inc. Announces Sale of Colorado Assets

TORONTO, ONTARIO--(Marketwired - March 18, 2015) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.

Brownstone Energy Inc. (TSX VENTURE:BWN) ("Brownstone" or the "Company") is pleased to announce that it has entered into an agreement dated March 17, 2015 (the "Asset Purchase Agreement") and effective as of January 1, 2015 (the "Effective Date") with Coachman Energy Partners LLC ("Coachman") pursuant to which it will sell its oil and gas property interests located in Carfield County and Rio Blanco County, Colorado (the "Subject Assets") to Coachman, in consideration of a cash payment to the Company of US$1,960,000 (the "Purchase Price") due at closing (the "Asset Sale").

The Subject Assets consist of each of the oil and gas leases in which Brownstone holds an interest located in Carfield County, Colorado (the "Leases"), the oil and gas wells located on the Leases known as the E. Kokopelli wells, the wellbore of the oil and gas well known as the Rio Blanco wellbore located in Rio Blanco County, Colorado, and all of the Company's interest in any and all contracts, agreements and data relating to such properties. The Purchase Price is subject to adjustment in certain circumstances as further set forth in the Asset Purchase Agreement, including with respect to taxes and assessments based upon the Subject Assets, and any casualty losses incurred with respect to any of the Subject Assets prior to closing.

The Company will be entitled to production revenues and be liable for all costs related to the Subject Assets prior to the Effective Date, and Coachman will be entitled to production revenues and be liable for all costs related to the Subject Assets following to the Effective Date, in each case subject to the terms and conditions of the Asset Purchase Agreement.

The Asset Sale remains subject to the receipt of all applicable approvals, including the approval of the TSX Venture Exchange.

About Brownstone

Brownstone Energy Inc. is a Canadian-based, energy focused company with direct interests in oil and gas exploration projects. By owning and managing a diversified portfolio of energy-based projects, Brownstone provides shareholders with a unique energy alternative. For additional information, please see Brownstone's website: www.brownstoneenergy.com.

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.

Forward Looking Statements - Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of Brownstone, including, but not limited to the impact of general economic conditions, risks associated with oil and gas activities and dependence upon regulatory approvals. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.

Contact Information