Greenfields Petroleum Corporation
TSX VENTURE : GNF
TSX VENTURE : GNF.DB

Greenfields Petroleum Corporation

June 27, 2012 07:00 ET

Greenfields Petroleum Corporation Advises of Delays to Startup of the Two Western-Style Rigs Being Mobilized in Azerbaijan

HOUSTON, TEXAS--(Marketwire - June 27, 2012) -

NOT FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAWS.

Greenfields Petroleum Corporation (the "Company" or "Greenfields") (TSX VENTURE:GNF) (TSX VENTURE:GNF.DB), an independent exploration and production company with producing assets in Azerbaijan advised today that the two modern Western-style workover rigs that arrived in country earlier this year for work on the Bahar project under the Exploration, Rehabilitation, Development and Production Sharing Agreement ("ERDPSA") will not be operational in June as previously planned. Bahar Energy Limited ("BEL"), Greenfield's 33.33%-owned joint venture, has advised that the spud date for the first offshore well in the Gum Deniz oil field is delayed until mid-September 2012.

The delays are primarily due to weather conditions, mainly high winds and seas which not only limit normal operations but also diminish operational safety. Offshore operations in this severe weather environment within government regulations has also affected and delayed the planned upgrades to the platforms. These upgrades must be completed prior to moving the rigs offshore. Suitable crane barges which are necessary to be able to move and install the required material are in high demand and have been difficult to secure and, because of the weather conditions, difficult to employ for materials installation. Due to the weather, BEL's initially scheduled access to crane barges was missed and BEL is negotiating to establish a subsequent time to have the barges available.

Richard E. MacDougal, Greenfield's Chief Operating Officer, commented "We are disappointed with the delays of the development drilling and workover programs and we are working closely with local crane barge operators to secure and install appropriate equipment as soon as possible. The start-up of these operations is key to realizing the significant value and future potential that exists in our Bahar ERDPSA project."

About Greenfields Petroleum Corporation

Greenfields is a junior oil and natural gas company focused on the development and production of proven oil and gas reserves principally in the Republic of Azerbaijan. The Company plans to expand its oil and gas assets through further farm-ins, and acquisitions of Production Sharing Agreements from foreign governments containing previously discovered but under-developed international oil and gas fields, also known as "greenfields". More information about the Company may be obtained on the Greenfields website at www.greenfields-petroleum.com.

Forward Looking Statements

The forward-looking statements contained in this press release are based on certain key expectations and assumptions made by Greenfields. Although Greenfields believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Greenfields can give no assurance that they will prove to be correct.

Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties most of which are beyond the control of Greenfields. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results, performance or achievements could vary materially from those expressed or implied by the forward-looking information. These risks include, but are not limited to, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety, political and environmental risks), commodity price and exchange rate fluctuations and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. Additional risk factors can be found under the heading "Risk Factors" in Greenfields' Annual Information Form and similar headings in Greenfields' Management's Discussion & Analysis which may be viewed on www.sedar.com.

The forward-looking statements contained in this press release are made as of the date hereof and Greenfields 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. The Company's forward-looking information is expressly qualified in its entirety by this cautionary statement.

Neither the 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

  • Greenfields Petroleum Corporation
    John W. Harkins
    Chief Executive Officer
    (832) 234-0800

    Greenfields Petroleum Corporation
    David G. Gullickson
    Chief Financial Officer
    (832) 234-0800
    www.greenfields-petroleum.com

    CHF Senior Account Manager
    Robin Cook
    (416) 868-1079 x 228
    info@greenfieldspetroleum.com