TORONTO, ONTARIO--(Marketwired - Feb. 11, 2014) - Brownstone Energy Inc. (TSX VENTURE:BWN)(OTCQX:BWSOF) announces that it has entered into an agreement to assign all of its 34.25% oil and gas participation interest in the Llanos 27 Project located in the Llanos Basin of Central Colombia ("Block 27") to Santa Maria Petroleum Inc. Sucursal Colombia, the Colombian branch of Global Oil & Gas Services Ltd. and a current participant in the project. The assignment will be effected for no consideration but will result in the release of a $1.85 million letter of guarantee provided on behalf of Brownstone to the Agencia Nacional de Hidrocarburos, the Colombian government oil and gas agency.
The decision to divest of Brownstone's interest in Block 27 was made in view of the company's obligations to fund 50% of the work commitments under the second phase of exploration currently underway and the desire to deploy working capital cautiously while the near-term prospects for capital raising remain challenging. Upon completion of the disposition of the project, which is subject to the acceptance of the TSX Venture Exchange, Brownstone will have no remaining oil and gas projects in Colombia and nil oil and gas reserves.
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.
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.
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.