Greenfields Petroleum Corporation Announces Spudding First Gum Deniz Oil Field Development Well

HOUSTON, TEXAS--(Marketwire - Aug. 21, 2012) -

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Greenfields Petroleum Corporation (the "Company" or "Greenfields") (TSX VENTURE:GNF) (TSX VENTURE:GNF.DB), announced that Bahar Energy Operating Company (BEOC), the operating company for Bahar Energy Limited in which Greenfields owns a 33.33% interest, spudded the Gum Deniz 601 well on August 20, 2012. The well is being drilled from a pad on Gum Deniz Island in Azerbaijan utilizing the Great Wall 88 rig to develop a field extension in the north of Gum Deniz field that is expected to be un-drained.

John W. Harkins, CEO of Greenfields, stated, "This is an excellent opportunity to add early production and cash flow. BEOC was fortunate to locate a first-rate land rig that enables us to act early on these prospects."

The location is in the northern extension of the main body of the oil field. It is anticipated that the well will yield early production and reserves growth, and with success leading to multiple new drilling targets to the north. Wells in this area have two to four target horizons compared with the infill development wells located towards the center of the field that have four to eight target zones. A favorable contract on the Great Wall 88 rig resulted in these wells having an estimated drilling cost of about forty percent less than the projected cost of the platform wells.

Drilling in the central portion of Gum Deniz oil field is on schedule to commence in September 2012 utilizing the PSG-1 rig, which is now in the process of offshore commissioning on Platform 2. The initial platform based development well, Gum Deniz 715, will spud after completing the commission process of the new China fabricated rig.

The PSG-2 rig is also being mobilized to Platform 196 on Bahar gas field where it will undertake a series of workovers to repair and recomplete gas-condensate wells. Work is expected to commence during September 2012.

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.