Sagres Energy Inc.

June 20, 2011 09:00 ET

Sagres Announces Corporate Update and Stock Option Grant

CALGARY, ALBERTA--(Marketwire - June 20, 2011) - Sagres Energy Inc. ("Sagres" or the "Company") (TSX VENTURE:SGI) announced an update on its corporate activities and the grant of stock options to its directors and officers.

Corporate update

Moving forward, Sagres will be pursuing a much more aggressive program in Latin America focusing primarily in Colombia, Peru and Argentina. The Company currently has two onshore blocks in Colombia, PUT 03 in the Putumayo Basin and LLA 11 in the Llanos Basin. Sagres has a 90% working interest (WI) in both of these blocks, each of which were acquired in the 2010 Colombian bid round. Contractors are currently being solicited to initiate and complete an Environmental Impact Assessment (EIA) on the blocks. Once completed, the Company can then proceed with its proposed seismic programs on the blocks which consists of 152 km of 2D seismic on the PUT 03 Block, and 162 km2 of 3D seismic data on the LLA 11 Block. Sagres is currently evaluating several other opportunities in Colombia and is optimistic that it will be able to acquire a working interest in more blocks through farm-ins shortly. Additionally, the Company is continuing to evaluate new opportunities in Peru and Argentina where evaluations are currently ongoing.

In Jamaica, Sagres continues to look for joint venture partners on its 9, 13 and 14 offshore blocks. In preparation for the drilling of a possible well on its large La Concepcion prospect, the Company is in the process of initiating an EIA and site survey of the drill location so that drilling may proceed as quickly as possible once a partner is found.

A new June Investors Presentation for Sagres is expected to be posted on its website early in the week of June 20, 2011.

Stock Option Grant

Sagres announced that its board of directors has resolved to not complete the grant of 3,800,000 stock options at a price of $0.13 per share as disclosed in its May 26, 2011 news release following a determination of certain irregularities in its option granting process. Sagres also announced that it has granted 4,200,000 stock options to its directors and officers. The options have an exercise price of $0.15 per share (representing a 36% premium to the closing price on June 17, 2011), vest in equal instalments on the first, second and third anniversaries of grant and expire five years from the date of grant.

About Sagres

Sagres Energy Inc. is a Canadian based international oil and gas exploration company with an exploration portfolio in Colombia, Guyana and Jamaica. The common shares of Sagres are listed for trading on the TSX Venture Exchange under the symbol "SGI".

Forward-looking information

This news release contains forward-looking information relating to the Company's growth and corporate strategy, and other statements that are not historical facts. Forward-looking information relates to management's future outlook and anticipated events or results, and may include statements or information regarding the future plans or prospects of the Company.

Forward-looking information is based on certain factors and assumptions regarding, among other things, the impact of increasing competition; the general stability of the economic and political environments in which the Company operates; the timely receipt of any required regulatory approvals; the ability of the Company to obtain qualified staff, equipment and services in a timely and cost efficient manner; drilling results; the ability of the operator of the projects which the Company has an interest in to operate the field in a safe, efficient and effective manner; the ability of the Company to obtain financing on acceptable terms; field production rates and decline rates; the ability to replace and expand oil and natural gas reserves through acquisition, development of exploration; the timing and costs of pipeline, storage and facility construction and expansion and the ability of the Company to secure adequate product transportation; future oil and natural gas prices; currency, exchange and interest rates; the regulatory framework regarding royalties, taxes and environmental matters in the jurisdictions in which the Company operates; and the ability of the Company to successfully market its oil and natural gas products, and other similar matters. While the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.

Forward looking-information is subject to certain factors, including risks and uncertainties that could cause actual results to differ materially from what is currently expected. These factors include risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services, incorrect assessment of the value of acquisitions, the inability to settle the definitive terms of the Company's joint venture arrangements, failure to realize the anticipated benefits of acquisitions, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources, reliance on key personnel, regulatory risks and delays, including risks relating to the acquisition of necessary licenses and permits, environmental risks and insurance risks.

The forward-looking statements contained in this news release are made as of the date of this news release. Except as required by law, Sagres disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Additionally, Sagres undertakes no obligation to comment on the expectations of, or statements made by, third parties in respect of the matters discussed above.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Sagres Energy Inc.
    Gary Wine
    President & CEO
    (403) 441-1129

    Sagres Energy Inc.
    Daniel Bruno
    Vice President, Corporate Development
    (416) 861-5935