Sagres Energy Inc.

Sagres Energy Inc.

November 28, 2011 08:00 ET

Sagres Updates Jamaica Operations and Appoints an Additional Independent Director

CALGARY, ALBERTA--(Marketwire - Nov. 28, 2011) - Sagres Energy Inc. (TSX VENTURE:SGI) ("Sagres" or the "Company"), an international oil and gas company with an exploration portfolio in Colombia, Guyana and Jamaica, is pleased to provide an update on its activities in Jamaica and report the appointment of Mr. Maurice Colson to the Board of Directors.

Jamaican Activities

Rainville Energy Corporation ("Rainville"), a wholly owned subsidiary of Sagres, is a party to three Production Sharing Agreements with the Petroleum Corporation of Jamaica covering the right to explore and develop Blocks 9, 13 and 14 covering approximately 8,864 km² located offshore Jamaica (the "Blocks").

The minimum exploration work commitments under each of the production sharing agreements are divided into two phases. The first phase, which has been successfully completed, consisted of acquiring a total of 2,458 km of new 2D seismic data. The second phase, which Rainville must elect to enter into by December 15, 2011, consists of completing a detailed prospectivity analysis and drilling one well at each block. As per the contract, the second phase must be completed by December 2013.

Rainville has recently applied to the Petroleum Corporation of Jamaica for an extension to the first phase to allow potential joint venture partners sufficient time to complete their evaluation of the Blocks. A decision is expected to be reached in the next two weeks. Concurrently the Company is in discussions with several parties with regards to a potential farm-in on these properties.

Mr. Gary Wine, President and CEO of Sagres stated that "we continue to be excited by the significant potential of the La Concepcion prospect, a mapped prospect that straddles Blocks 9 and 13, with an independent evaluation establishing a gross mean prospective resource estimate of 2.9 billion barrels before consideration of risk. We look forward to advancing this project to the drilling stage and we are holding discussions with potential partners". Details regarding the resources estimate 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.

Appointment to the Board of Directors

Sagres is pleased to announce that it has appointed Mr. Maurice Colson to the board of directors and audit committee of the Company.

Mr. Colson has worked in the investment industry for more than 35 years and was for many years managing director for a major Canadian investment dealer in the United Kingdom. He is actively involved in providing strategic counsel and assistance with financing to emerging private and public companies in Canada and to Canadian companies operating internationally. He sits on the board of directors of several TSX and TSX Venture listed companies and is the former President and CEO of Lithium One Resources. Mr. Colson holds a Masters of Business Administration degree.

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".

Regulatory Statements

Sagres has no reserves. The estimates of petroleum volumes described in this news release are for prospective resources only.

This press release contains "forward looking information" within the meaning of applicable Canadian securities legislation. Forward looking information includes, but is not limited to, statements with respect to the development of the Blocks; costs associated with the Blocks; the potential of the Block; an extension on the Blocks; statements regarding estimates of petroleum volumes; and statements with respect to the effect of the appointment on the Company. 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 the Company 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 exploration activities; regulatory risks; risks inherent in foreign operations; and other risks of the oil and gas industry. Although the Company 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. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.


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