Brownstone Energy Inc.

Brownstone Energy Inc.

June 10, 2013 08:57 ET

Brownstone's Llanos Block 21 Operator Abandons Calacho-1 and Rocamao-1 Wells

TORONTO, ONTARIO--(Marketwired - June 10, 2013) - Brownstone Energy Inc. (TSX VENTURE:BWN)(OTCQX:BWSOF) ("Brownstone" or "the Company") has been informed by Omega Energy Colombia, the operator of the Llanos 21 block in the Llanos basin in Colombia, that it has abandoned the Calacho No. 1 and the Rocamao No. 1 wells. The wells were part of a continuous two well drilling and testing program carried out by the operator in fulfillment of the exploration requirements on the block. Completion and testing of the wells was delayed by a combination of weather conditions and blockades of industry access roads in the area by local citizens.

The C7 formation in the Calacho No. 1 well was recently tested. During the test period the C7 formation produced a total of 5857 barrels of fluid, consisting of 5669 barrels of water and 188 barrels of 35 degree API oil. The maximum fluid production rate was approximately 1450 barrels per day. The testing program was ended when the water cut reached 100%. With no further oil production, the operator made the decision to abandon the well.

The C7 formation in the Rocamao No. 1 well was also tested. The C7 formation produced 64 barrels of water in 3 hours at rates that fluctuated between 192 and 336 barrels of fluid per day. Total testing resulted in the production of 329 barrels of water with no oil produced and the decision was made by the operator to abandon the well. With no oil produced, the operator made the decision to abandon the well.

Brownstone has satisfied its financial obligations in respect of the block and following the abandonment of both the Calacho No. 1 and the Rocamao No. 1 wells, intends to terminate its remaining interest in the block.

About Brownstone

Brownstone Energy Inc. is a Canadian-based, energy focused company with direct interests in oil and gas exploration projects, including varying interests in three off-shore Israel concessions and in three Colombian blocks 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:

Cautionary Statements

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.

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.

Contact Information