Sagres Energy Inc.

Sagres Energy Inc.

June 18, 2012 09:08 ET

Sagres Energy Enters Second Exploration Phase on Jamaica Licenses

CALGARY, ALBERTA--(Marketwire - June 18, 2012) - Sagres Energy Inc. ("Sagres" or the "Company") (TSX VENTURE:SGI), an international oil and gas company with an exploration portfolio in Colombia and Jamaica is pleased to provide an update on its activities in Jamaica.

Jamaican Activities

Rainville Energy Corporation ("Rainville"), a wholly owned subsidiary of Sagres, has recently agreed with the Petroleum Corporation of Jamaica (the "PCJ") to enter into the second exploration phase on its licenses. Rainville is a party to three Production Sharing Agreements (the "PSAs") with the PCJ granting the right to explore and develop Blocks 9, 13 and 14 covering approximately 8,864 square kilometers located offshore, shallow water, Jamaica (the "Blocks"). Rainville holds a 100% interest in each of the Blocks and is the designated operator.

The minimum exploration work programme commitments under each of the PSAs are divided into two phases. Rainville has completed all the work commitments under the first phase, which consisted of acquiring a total of 2,458 kilometers of new 2D seismic data, carrying out bathymetric, geologic and environmental surveys on the Blocks and regional geologic surveys of the adjacent Walton and Lower Walton basins, and the island of Jamaica.

As per the recently concluded agreement with the PCJ, the second exploration phase will have a term of two and one half years starting on May 1, 2012 and expiring on November 1, 2014. The PCJ has approved the work programme commitments for this phase which consists mainly of the drilling of a total of two exploration wells and carrying out an Environmental Impact Assessment (EIA) over the blocks. Depending on the results of the first exploration well, the Company and the PCJ may decide to delay and/or acquire additional geological and geophysical data before the drilling of the second exploration well. Rainville expects to finalize the amendments to the current PSAs over the coming weeks.

Mr. Ahmed Said, Director, commented, "We are very pleased with the recent agreement reached with the Jamaica government. Sagres has seismically identified two main prospects and three leads in ultra shallow water across its blocks. The Chapman NI 51-101 prospective resource evaluation on these prospects and leads show with an independent evaluation establishing a gross mean prospective resource estimate of 3.0 billion barrels. We believe the Jamaica portfolio can add significant value for our shareholders, and are excited to advance the project towards drilling."

Resources estimates are pursuant to the Company's NI 51-101 Report prepared by Chapman described in a press release of the Company dated August 27, 2010.


The Company also announces that it has received an extension approval from the TSX Venture Exchange for its non-brokered private placement financing originally announced on May 4, 2012. The private placement financing will now close on or before July 3, 2012.

About Sagres

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

Regulatory Statements

This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, without limitation, statements regarding development of the Blocks; the timetable to carry out work commitments under the Blocks; the potential of the Blocks; statements regarding estimates of petroleum volumes; and the closing date for the private placement financing. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Sagres, as the case may be, to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, geopolitical and social uncertainties; the actual results of current exploration activities; risks associated with operation in foreign jurisdictions; ability to successfully integrate acquired properties; foreign operations risks; and other risks inherent in the oil and gas industry. Although Sagres has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. Sagres does not undertake to update any forward-looking information, except in accordance with applicable securities laws.


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