TORONTO, ONTARIO--(Marketwired - Oct. 23, 2013) - Brownstone Energy Inc. (TSX VENTURE:BWN)(OTCQX:BWSOF) ("Brownstone" or "the Company") today announces that it has entered into an Assignment and Termination Agreement with MONTECZ S.A., the operator of Block LLA36 in the Llanos Basin in Colombia, that terminates the Company's private participation interest in the LLANOS 36 Project for no consideration, effective immediately. The Company has no further obligations or liabilities in respect of the Project (subject to the release of the Letters of Credit discussed below).
$1.1 million in Letters of Credit that had been provided on behalf of Brownstone to the Colombian Agencia Nacional de Hidrocarburos (ANH) in order to guarantee the operator's work commitments on the block will be released once the replacement Letters of Credit provided to the ANH by Montecz S.A have been approved. The Company's Letters of Credit had been secured by a combination of cash on deposit provided by Brownstone and guarantees provided by Export Development Canada.
Brownstone's activities in Colombia continue through its private participating interest in the LLANOS 27 Project, in the Llanos Basin.
Brownstone Energy Inc. is a Canadian-based, energy focused company with direct interests in oil and gas exploration projects, including varying interests in two off-shore Israel concessions and in one Colombian block in the Llanos basin, as well as other oil and gas interests worldwide. 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.
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 the Company, including expectations and assumptions concerning the operational results in the U.S.A. Although the Company 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 the Company 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 the Company'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.