Veraz Petroleum Ltd.
TSX VENTURE : VRZ

Veraz Petroleum Ltd.

April 11, 2012 08:30 ET

Veraz Petroleum Announces Filing of Year-End Disclosure Documents and Operational and Financial Update

CALGARY, ALBERTA--(Marketwire - April 11, 2012) - Veraz Petroleum Ltd. ("Veraz" or the "Company") (TSX VENTURE:VRZ) is pleased to announce that it has filed its audited consolidated financial statements and accompanying notes for the year ended December 31, 2011 and its related management's discussion and analysis with applicable Canadian securities regulatory authorities. Copies of these documents may be obtained through the Internet on the System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com.

Further to the Company's press release of February 27, 2012, Veraz and its partner, Petrominerales Ltd. ("Petrominerales" or the "Operator"), continue to evaluate the prospective intervals of the La Colpa 2X well on Block 126. As previously announced, the timing for completion of the testing program is anticipated to be the end of April 2012, at which point the rig will be moved to the Sheshea 1X location on Block 126. The Company anticipates that drilling of the Sheshea 1X well will commence near the end of May 2012.

The Operations Committee has recently met to review operations on all three jointly owned blocks in Peru, and in particular Block 126. The Operator has provided a detailed review and analysis of operations to date on Block 126, including capital expenditures, as well as provided a budget for the completion operations at La Colpa 2X and a revised drilling cost estimate for Sheshea 1X, which results in an increased budget for this well. Veraz and Petrominerales have faced weather and contractor related cost overruns for the drilling of La Colpa 2X and related construction work.

Although the Corporation anticipates being able to fund the completion of the La Colpa 2X well and the majority of base camp and infrastructure costs with its existing working capital, the Corporation will require additional sources of financing in order to fund its participation in the Sheshea 1X well. The Corporation is currently reviewing its financing alternatives and will update the market in this regard as circumstances warrant.

Veraz Petroleum Ltd. is a junior South American focused oil and gas exploration company based in Calgary, Alberta.

Forward-Looking Statements. Certain information provided in this press release constitutes forward-looking statements. The words "anticipate", "expect", "project", "estimate", "forecast", "plan" and similar expressions are intended to identify such forward-looking statements. This press release contains forward-looking statements pertaining to, without limitation, our plans relating to the testing of the La Colpa 2X well, our plans for drilling the Sheshea 1X well, the time frames during which we expect certain related operational milestones to be achieved, our expectation that we will be able to fund the completion of the La Colpa 2X well and the majority of base camp and infrastructure costs with our existing working capital, and our intention to review our financing alternatives. We have made various assumptions relating to the forward-looking statements contained herein, including in respect of our ability to fund the completion of the La Colpa 2X well with our existing working capital and our ability to obtain financing to participate in the Sheshea 1X well. Although Veraz believes that the expectations reflected in these forward-looking statements, and the assumptions on which they are made, are reasonable, undue reliance should not be placed on them as Veraz can give no assurance that they will prove to be correct.

Since forward-looking statements address future events and conditions and are based on various assumptions, by their very nature they involve inherent risks and uncertainties that contribute to the possibility that the forward-looking statements may not be accurate, which may cause our actual performance and financial results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things: the impact of weather conditions on our ability to execute our development programs; local opposition from indigenous communities; our reliance on Petrominerales Peru S.A.C. as operator; risks inherent in oil and gas operations, including geological, technical, drilling and processing problems; the impact of competition; failure to obtain requisite third party and regulatory consents and approvals; the potential for cost over-runs and our potential inability to fund our share of such cost over-runs; the possibility that we will not be able to obtain additional financing to fund our budget at all or on acceptable terms; the possibility of defaulting under contracts governing our interest in our properties and the resulting penalties that we may suffer as a consequence thereof, which under certain circumstances could include forfeiture of our interest in our properties and the related agreements and licenses; and the other factors described in our public filings (including our Annual Information Form) available at www.sedar.com. Readers are cautioned that this list of risk factors should not be construed as exhaustive.

The forward-looking statements contained in this press release are made as of the date hereof and Veraz undertakes no obligation to publicly update 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 forward-looking statements contained in this document are expressly qualified by this cautionary statement.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Contact Information

  • Veraz Petroleum Ltd.
    Gerardjan ("Oppe") Cosijn
    President and Chief Executive Officer
    (403) 781-7930

    Veraz Petroleum Ltd.
    Colin Christie
    Vice President, Finance and Chief Financial Officer
    (403) 781-7931
    www.verazpetroleum.com