SOURCE: Key Capital Corp

October 15, 2014 09:30 ET

Key Capital Corporation and GeoGlobal Resources, Inc.: Putumayo 7 Block, Colombia -- Service of Notice re Claimed Entitlement

SCOTTSDALE, AZ--(Marketwired - Oct 15, 2014) - Key Capital Corporation (PINKSHEETS: KCPC) and GeoGlobal Resources, Inc. (PINKSHEETS: GGLR) advise as follows:

GeoGlobal has served Notice on Petro Caribbean Resources Ltd pursuant to an Indemnity Agreement under which Petro Caribbean is required to immediately provide a first security charge over all of the Petro Caribbean Resources Ltd assets, which includes the Putumayo 7 Block. Simultaneously, GeoGlobal has provided copies of this Notice and the Indemnity Agreement together with advice of its entitlements to Agencia Nacional de Hidrocarburos, the Colombian regulator, as currently the guarantee of over US$100 million provided through the GeoGlobal interests still secures the project performance for Block 7, as well as for Block 6 which is also subject to the agreements with Petro Caribbean Limited.

Background:

Following GeoGlobal becoming aware last month that Petro Caribbean Resources Ltd had sold a 100% interest in the Putumayo 7 block -- a 50% interest to PetroGranada, a current investment of Barclays Natural Resource Investments (a division of Barclays Bank Plc) and a 50% interest to TSX-V listed PetroAmerica Oil Corp., GeoGlobal provided notice to all parties questioning the sale without consideration to GeoGlobal's entitlements and without GeoGlobal's knowledge or consent. Each of the parties has refuted GeoGlobal's claim to any entitlement. It is noted that both PetroGranada and PetroAmerica Oil Corp have had no dealings or relationship with GeoGlobal. The entitlements claimed by GeoGlobal's claims stem from its agreements and relationship with Petro Caribbean Resources Ltd. 

GeoGlobal through agreement with Petro Caribbean Resources Ltd in 2010 prepared successful Bids on two highly prospective oil and gas exploration blocks (Putumayo 6 and 7) in Colombia and a related party to GeoGlobal provided the performance guarantee of US$100 million plus to Agencia Nacional de Hidrocarburos in order that the Bids have the required level of financial backing.

GeoGlobal also provided all the technical input and preparation of the documentation for the Bids and the related Work Programs. GeoGlobal as well as providing its technical personnel to the Projects also provided significant capital costs that have not been reimbursed. The Agreement between GeoGlobal and Petro Caribbean provided for an Operating Agreement and/or a joint venture to be entered into under which GeoGlobal was to receive a 10% Carried Interest as well as an option for a 40% Participating Interest. This Operating Agreement and/or Joint Venture Agreement was never provided by Petro Caribbean. Petro Caribbean, without cause, purported to terminate all of GeoGlobal's rights and entitlements last year which GeoGlobal strongly contests.

ABOUT KEY CAPITAL, (PINKSHEETS: KCPC): Key Capital is a streaming, structured finance, and equity funder of mining projects that through its funding agreements with its client partners retains an interest in the production of mines containing gold, silver, or base metals, or in energy products. The Company is a Georgia corporation headquartered in Scottsdale, Arizona that holds a control interest in GeoGlobal Resources, Inc., and has agreement with related party, Red Rock Assets, LLC, for the funding of resource and energy projects through its online lending platform.

For further information, please see www.keycapitalgroup.com or Contact Chris Nichols, President/CEO at +1 (480) 745-2625, or info@keycapitalgroup.com.

ABOUT GEOGLOBAL RESOURCES, (PINKSHEETS: GGLR): GeoGlobal Resources Inc., is an emerging international oil and gas E&P company with interests in India, Israel, and Colombia. In India, oil and gas production has commenced in three of the Company's interests in the onshore Cambay Basin, and gas production testing has recently 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 www.geoglobal.com or contact info@geoglobal.com.

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