SOURCE: GeoGlobal Resources Inc

GeoGlobal Resources Inc

January 06, 2015 17:13 ET

GeoGlobal Resources, Inc.: Progress Report and Removal of Director

SCOTTSDALE, AZ--(Marketwired - Jan 6, 2015) - GeoGlobal Resources, Inc. (OTC PINK: GGLR) is pleased to advise that despite ongoing difficulties, the Company has been making substantial progress as it recovers from its state of near collapse some eight months ago. Over this period the key achievements include:

  • The negotiated resolution of outstanding non-payment of due revenue from the Cambay Basin producing fields is now in process of settling, following which the Company expects to then receive around US$100k a month as its revenue share from these interests.

  • Shri Narendra Modi, Prime Minister of India, recently provided the necessary reform to provide for production commencement of the long awaited Tarapur #6 and associated seven appraisal wells. This will provide the long awaited additional production revenue from wells drilled in 2007-2009 and provide expected revenue in excess of $400,000 per month, net to GGR from early this year.

  • Expected drilling of production wells in the 1,200 sq km Tarapur Ring Fence Block scheduled to commence later this year is forecast to provide operational cash flow upside as GeoGlobal will be targeting production of 30,000 BOPD in the initial development stage.

  • The Offshore KG field, where our partners to date have spent over US$3 billion in exploration and development, finally commenced gas production testing in Aug, 2014. Initial test production is projected at around 55 MMcf per day by late Q1, 2015 and to over 200 MMcf per day in 3-4 years. A further six Discoveries in the KG Offshore field are yet to be developed.

  • We have settled issues and debt with the Myra and Sara JV Block partners, where Ratio and Energean have become partners to re-drill and operate the Sara Prospect at a cost of about US$80 million. Currently, GeoGlobal retains a 5% interest.

  • Although GeoGlobal has a right to a 10% carried interest in the Colombian Putumayo 6 & 7 Blocks, and potentially an option to a further 40%, these Blocks were sold last year without reference, or consideration to GeoGlobal. The Company is in process of pursuing remedy in regard to this valuable asset and has demanded a first charge over the assets to secure its interest pursuant to rights under a counter-indemnity agreement with Petro Caribbean Resources Ltd. Following advice of the Company's interest to the Colombian authorities, the Company is in process of pursuing legal enforcement and remedy.

  • We have proceeded with an arbitration hearing in which OIL India is seeking recovery of some US$10 million plus 19% interest from GeoGlobal. GeoGlobal has now filed more than 800 pages of Defense, Counterclaim, and Notice of a Damages action of over US$650 million, which we publicly announced on September 19, 2014.

Further, the Company advises that Jean Paul Roy, the Company's former Chairman, President and CEO, through written consent of its control shareholder, Key Capital Corporation (OTC PINK: KCPC), has been removed as a director of the Company for cause. This action was subsequently ratified by the Company's directors and Mr. Roy has also been removed as a director and officer of the group subsidiary companies, which in some cases is still in process of completion. 

As currently, the Company and its subsidiaries are deficient in the filing of their respective Annual Returns, Tax filings, and general corporate compliance, the Company is now very much focused upon bringing all group companies current and compliant and expects to have this completed by late Q1 or early Q2.

Operationally, to allow GeoGlobal to run and be managed as an organized and growth business the Company will also be seeking to appoint a responsible, proven industry CEO, additional experienced directors, and an India Manager.

ABOUT GEOGLOBAL RESOURCES, (OTC PINK: GGLR): GeoGlobal Resources Inc., is an emerging international oil and gas E&P company with its major interests in India, where oil and gas production has commenced in three of the Company's interests in the onshore Cambay Basin, and gas production testing has commenced from the major proven offshore Deen Dayal West Field in the Krishna-Godavari Basin where GeoGlobal's partners have spent over US$3 billion on exploration and development to date.

For further information, please see or contact Don Benard, Interim President/CEO at +1 (480) 745-2625 Ext 6

Statements made in this press release that express the Company or management's intentions, plans, beliefs, expectations or predictions of future events, are forward-looking statements. The words "believe," "expect," "intend," "estimate," "anticipate," "will" and similar expressions are intended to further identify such forward-looking statements, although not all forward-looking statements contain these identifying words. Those statements are based on many assumptions and are subject to many known and unknown risks, uncertainties and other factors that could cause the Company's actual activities, results or performance to differ materially from those anticipated or projected in such forward-looking statements. The Company cannot assure future financial results, levels of activity, performance or achievements and investors should not place undue reliance on the Company's forward-looking statements.

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