CALGARY, ALBERTA--(Marketwired - Aug. 29, 2014) - ROOSTER ENERGY LTD. (the "Company") ( www.roosterenergyltd.com ) (TSX VENTURE:COQ) is pleased to announce that it has filed on SEDAR its unaudited interim financial statements, and related management discussion and analysis ("MD&A") for the three months ended June 30, 2014 ("Q2 2014"). Selected financial and operational information for Q1 2014 and subsequent thereto is contained in the below summary and should be read in conjunction with the financial statements and related MD&A.

Robert P. Murphy, President & Chief Executive Officer, comments that "production volumes in Q2 2014 averaged 1,310 barrels of oil equivalent per day ('BOEPD'), compared to 1,208 BOEPD in Q1 2014. During the second quarter, the Company resumed production of our wells at High Island 141 and installed compression at Grand Isle 70, which led to the sequential increase in production. The Company generated EBITDAX of $3.3 million in Q2 2014, compared to $3.8 million in Q1 2014.

"In July, 2014, the Company announced its intention to commence a private offering of US$100 million of senior secured notes. We have received considerable interest in the offering and anticipate finalizing terms of a financing in the next 30 days. Proceeds from a financing, combined with the proposed new revolving credit facility, will enable Rooster to execute on its 2014-2015 drilling and recompletion program. Concurrent with the closing of the proposed financing and revolving credit facility, we intend to consummate the acquisitions of Cochon Properties, LLC ('Cochon') and Morrison Well Services, LLC ('Well Services') previously approved by shareholders. The acquisition of Cochon and Well Services will create a vertically- integrated 'cradle to grave' oil and gas operator that enables us to continue our strategy of near infrastructure exploration and development with the added ability to dismantle the infrastructure in a safe, timely and cost efficient manner."

SUMMARY FINANCIAL RESULTS

For the three months ended For the six months ended
June 30, June 30,
2014 2013 2014 2013
Sales
Oil (Bbl) 61,640 76,498 119,952 151,063
NGL (Bbl) 5,263 8,816 10,564 18,691
Natural gas (Mcf) 313,772 752,227 584,318 1,698,390
Total (BOE/day) (a) 1,310 2,315 1,259 2,502
Revenue $ 7,877,628 $ 10,731,229 $ 15,571,769 $ 22,289,783
Total costs and expenses 6,377,426 7,103,388 11,408,336 19,008,695
Operating income (loss) 1,500,202 3,627,841 4,163,433 3,281,088
Unrealized gain (loss) on financing warrants (1,038,000 ) (1,515,000 ) (287,000 ) (1,464,000 )
Finance expenses (b) (3,518,414 ) (1,295,045 ) (5,230,963 ) (2,564,765 )
Income (loss) before tax expense (3,056,212 ) 817,796 (1,354,530 ) (747,677 )
Deferred tax expense (recovery) (312,000 ) 759,000 304,000 (85,000 )
Income (loss) (2,744,212 ) 58,796 (1,658,530 ) (662,677 )
Income (loss) per share
Basic (0.03 ) 0.00 (0.02 ) (0.01 )
Diluted (0.03 ) 0.00 (0.02 ) (0.01 )
Capital expenditures $ 573,844 $ 9,677,716 $ 2,562,337 $ 9,920,031
EBITDAX (c) $ 3,319,191 $ 6,186,928 $ 7,083,126 $ 13,171,150
(a) Gas volumes are converted to BOE on the basis of 6 Mcfe per 1 barrel.
(b) Finance expense includes accretion for asset retirement obligations.
(c) EBITDAX is a non-IFRS measure commonly used in the oil and gas industry. Such measures do not conform to IFRS and may not be comparable to those reported by other companies nor should they be viewed as an alternative to other measures of financial performance calculated in accordance with IFRS. The company defines EBITDAX as net income before finance expense, taxes, depreciation, amortization, accretion, exploration and evaluation, bad debt, impairments, stock-based compensation, and the non-cash portion of plug and abandonment expense.

Extension of Membership Interest Contribution Agreements

On March 7, 2014, the Company announced that it entered into two separate Membership Interest Contribution Agreements to acquire all of the ownership of Morrison Well Services, LLC ("Well Services") and Cochon Properties, LLC ("Cochon") which acquisitions were subsequently approved by the shareholders on May 16, 2014. The Company previously entered into agreements with the members of Cochon and Well Services to extend the time to close its acquisitions of Well Services and Cochon from July 7, 2014 until August 15, 2014. The Company is pleased to announce that it has entered into subsequent agreements to extend the time to close its acquisitions of Well Services and Cochon until September 30, 2014. It is expected that the acquisitions will close on or about the same time as the financing but the acquisitions are not conditioned upon the financing.

Extension of Limited Consent

In order to enter into the membership interest contribution agreements for Well Services and Cochon, the Company obtained the consent of the holders of its current first priority secured notes in the amount of US$22.5 million pursuant to a limited consent and forbearance agreement dated March 7, 2014 (the "Limited Consent"). Therein, the holders of the notes and the Company acknowledged that at the end of fourth quarter of 2013, the Company was in existing and continuing default of the collateral coverage ratio covenant of the notes (the "Specified Default") and in order to allow for the acquisition of Cochon and Well Services, the Limited Consent provided that, the holders of the notes will forbear from exercising certain rights and remedies under its loan agreements in respect of the Specified Default until, among other things, payment in full of the obligations owed by the Company to the holders or July 7, 2014. The Company entered into a first amended Limited Consent agreement with the holders extending from July 7, 2014 to August 31, 2014 the date of the Limited Consent. On August 29, 2014, the Company entered into a second amended Limited Consent agreement with the holders of the notes extending the termination date of the Limited Consent to September 30, 2014.

ABOUT ROOSTER ENERGY LTD.

Rooster Energy Ltd. is a Houston, Texas, USA, based independent oil and natural gas exploration and production company focused on the development of resources in the shallow waters of the Gulf of Mexico. At June 30, 2014, our primary assets consist of interests in 22 producing oil and/or natural gas wells and 15 federal leases or blocks. The Company is the operator of the majority of its properties and daily oil and gas production.

Investors are welcome to visit our website at www.roosterenergyltd.com .

Forward-Looking Information and Statements

Certain statements and information in this press release may constitute "forward-looking information" or statements as such terms are used in applicable Canadian securities laws. Any statement that expresses, involves or includes expectations of future operations (including drill rig commitments and use of proceeds), commerciality of any hydrocarbon discovered, production rates, operating costs, commodity prices, administrative costs, commodity price risk and other components of cash flow and earnings, management activity, acquisitions and dispositions, capital spending, access to credit facilities taxes, regulatory changes, projections, objective, assumptions or future events that are not statements of historical fact should be viewed as "forward-looking statements". Events or circumstances may cause actual results to differ materially from those predicted, a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company. These risks include, but are not limited to, the risks associated with the oil and gas industry, commodity prices, and exchange rate changes. Industry related risks could include, but are not limited to, operational risks in exploration, development and production, delays or changes in plans, risks associated with the uncertainty of reserve estimates, or reservoir performance, health and safety risks and the uncertainty of estimates and projections of production, costs and expenses. The reader is cautioned not to place undue reliance on any forward-looking statement in this press release. The Company disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.

Financial outlook information contained in this press release about the Company's prospective cash flows and financial position is based on assumptions about future events, including economic conditions and proposed courses of action, based on management's assessment of the relevant information currently available. Readers are cautioned that any such financial outlook information contained herein should not be used for purposes other than for which it is disclosed herein.

Note Regarding BOEs

The term barrel of oil equivalent ("boe") may be misleading, particularly if used in isolation. A conversion ratio for gas of 6 mcf:1 boe is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly equivalency conversion ratio of 6:1, utilizing a conversion on a 6:1 basis is misleading as an indication of value.

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

Rooster Petroleum, LLC
Gary Nuschler, Jr.
Vice President-Finance
(832) 463-0625
www.roosterenergyltd.com

TORONTO, ONTARIO--(Marketwired - Aug. 29, 2014) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRES

Estrella International Energy Services Ltd. (" Estrella " or the " Company ") (TSX VENTURE:EEN) announces that on August 29, 2014, it filed its Interim Condensed Consolidated Financial Statements and the related Management's Discussion and Analysis (" MD&A ") for the three and six month period ended June 30, 2014. Copies of these documents can be found on the SEDAR website at www.sedar.com . In this press release, except for share amounts, all dollar amounts are in US$ '000 unless otherwise specified.

During the quarter ended June 30, 2014, the Argentine rig market remained stable with the Company's entire Argentine rig fleet (6 rigs) operating on multi-year contracts. The Company placed additional rigs to work in the La Cira region of Colombia, where 6 work-over rigs began a contract for Occidental Petroleum. The Company finished the second quarter of 2014 with 55% average rig utilization. The Company currently has 27 of 45 rigs on contracts.

The Company continues to show significant progress in the Argentine market with its directional drilling alliance with Scientific Drilling International, recording its highest ever quarterly revenue of $2,619. The Company is currently increasing its investment in the Argentine market by bringing new sets of directional drilling tools that will allow it to expand its market position. The Company remains committed to the health and safety of its employees, and finished the second quarter of 2014 with only one lost time accident.

Selected Financial Information for the Quarter Ended June 30, 2014

During the quarter ended June 30, 2014, the Company recorded total revenues of $61,760 ($18,717 in 2013). The revenue for the quarter ended June 30, 2014 was offset by general and administrative expenses of $4,087 ($2,892 in 2013), depreciation of $9,275 ($3,142 in 2013), interest expense of $2,115 ($1,932 in 2013), and oilfield expenses of $55,912 ($15,870 in 2013). For the quarter ended June 30, 2014, the Company recorded other (income) and expense of $89 ($-523 during 2013). EBITDA of the quarter ended June 30, 2014 was $1,761 ($-45 in 2013). This represents the fourth consecutive quarter that the Company has reported positive EBITDA.

About Estrella

Estrella is an oil and natural gas, geothermal and mining service company with operations throughout Latin and South America. It provides conventional drilling services; directional drilling services; tools and equipment sales and rentals; work-over and finishing services; and consulting and engineering services. The Corporation is headquartered in Buenos Aires, Argentina and has operating locations in six countries Latin and South America.

Forward-Looking Statements

This press release may contain forward-looking statements which reflect management's expectations regarding future growth, results of operations, performance and business prospects of Estrella. These forward-looking statements may relate to, among other things, forecasts or expectations regarding business outlook for Estrella; commodity prices for oil and natural gas; oil and natural gas demand and production growth; debt service requirements for Estrella; improvements in operating procedures and technology; capital expenditures by Estrella and the oil and gas industry; the business strategies of Estella's customers; future global economic conditions; and future results of operations; expectations regarding the Corporation's ability to raise capital; realization of the anticipated benefits of acquisitions and dispositions, revenue growth, future acquisitions, generation of cash flow, and may also include other statements that are predictive in nature, or that depend upon or refer to future events or conditions, and can generally be identified by words such as "may", "will", "expects", "anticipates", "intends", "plans", "believes", "estimates", "guidance" or similar expressions. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements. These statements are not historical facts or guarantees of future performance, but instead represent management's current expectations, estimates and projections regarding future events.

The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances, such as future availability of capital on favourable terms, may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of Estrella. The reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this press release are expressly qualified by this cautionary statement. The forward-looking statements contained in this press release are made as of the date of this press release, and Estrella does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as required by securities law.

THIS PRESS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO SELL ANY OF THE SECURITIES DESCRIBED HEREIN IN THE UNITED STATES. THESE SECURITIES HAVE NOT BEEN, AND WILL NOT BE, REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS UNLESS REGISTERED OR EXEMPT THEREFROM.

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.

Estrella International Energy Services Ltd.
Carlos Valencia
Chief Executive Officer
+54 (11) 5217-5250
+54 (11) 5217-5280 (FAX)

Estrella International Energy Services Ltd.
Javier Vedoya
Chief Financial Officer
+54 (11) 5217-5250
+54 (11) 5217-5280 (FAX)
[email protected]
www.estrellasp.com

CALGARY, ALBERTA--(Marketwired - Aug. 29, 2014) - Divestco Inc. (TSX VENTURE:DVT) ("Divestco" or the "Company"), an exploration services company dedicated to providing a comprehensive and integrated portfolio of data, software and services to the oil and gas industry worldwide, today announced its financial and operating results for the three and six months ended June 30, 2014.

Financial Highlights

OVERALL PERFOR MANCE AND OPERATIONAL RESULTS

Financial Results (Thousands, Except Per Share Amounts)
Three months ended
June 30
Six months ended
June 30
2014 2013 $ Change % Change 2014 2013 $ Change % Change
Revenue $ 5,189 $ 7,083 $ (1,894 ) -27 % $ 11,901 $ 18,701 $ (6,800 ) -36 %
Operating Expenses (1) 5,516 5,948 (432 ) -7 % 11,141 12,603 (1,462 ) -12 %
Other Loss (Income) 28 1,694 (1,666 ) -98 % (155 ) 1,690 (1,845 ) N/A
EBITDA (2) (355 ) (559 ) 204 N/A 915 4,408 (3,493 ) -79 %
Finance Costs 243 221 22 10 % 502 491 11 2 %
Depreciation and Amortization 3,399 1,450 1,949 134 % 5,156 4,063 1,093 27 %
Loss before Income Taxes (3,997 ) (2,230 ) (1,767 ) N/A (4,743 ) (146 ) (4,597 ) N/A
Income Tax Reduction - - - N/A (31 ) - (31 ) N/A
Net Loss $ (3,997 ) $ (2,230 ) $ (1,767 ) N/A $ (4,712 ) $ (146 ) $ (4,566 ) N/A
Per Share - Basic and Diluted (0.06 ) (0.03 ) (0.03 ) N/A (0.07 ) (0.00 ) (0.07 ) N/A
Funds from Operations (2) $ (316 ) $ 1,173 $ (1,489 ) N/A $ 808 $ 6,384 $ (5,576 ) -87 %
Per Share - Basic and Diluted - 0.02 (0.02 ) -100 % 0.01 0.10 (0.09 ) -90 %
Class A Shares Outstanding 67,085 66,903 N/A N/A 67,085 66,903 N/A N/A
Weighted Average Shares Outstanding
Diluted 67,085 66,885 N/A N/A 67,069 66,830 N/A N/A
(1) Includes salaries and benefits, G&A and shared-based payments but excludes depreciation and amortization and other loss (income)
(2) See the "Non GAAP Measures and Additional GAAP Measure" sections of the Company's Management Discussion and Analysis filed on the Company's website and on SEDAR.

Q2 2014 vs. Q2 2013

The Company generated revenue of $5.2 million compared to $7.1 million in Q2 2013, a decrease of $1.9 million (27%). Revenue in the Software & Data segment ($1.9 million) decreased by $1.2 million (38%) as had been a significant data license sale in Q2 2013. Revenue in the Seismic Data segment ($0.8 million) decreased by $0.3 million (30%) due to lower industry activities. Revenue in the Services segment ($2.5 million) decreased by $0.4 million (14%) with geomatics, processing and land management services all experiencing weaker demand as compared to Q2 2013.

Operating expenses decreased by $0.4 million (7%) to $5.5 million in Q2 2014 as G&A expenses, including salaries & wages, were down $0.4 million due to the Company's cost cutting measures.

The increase in finance costs of $22,000 (10%) in Q2 2014 compared to Q2 2013 was mainly due a higher cost of debt in 2014.

Depreciation and amortization ($3.4 million) increased by $1.9 million (134%) mainly due to higher amortization of the seismic data library delivered to participants in Q2 2014 (Company's policy is to amortize 40% of participation survey costs immediately upon delivery of new seismic data to participants and the balance over six years straight-line).

SIX MONTHS ENDED JUNE 30, 2014 vs. SIX MONTHS ENDED JUNE 30, 2013

The Company generated revenue of $11.9 million compared to $18.7 million in 2013, a decrease of $6.8 million (36%). Revenue in the Software & Data segment ($3.8 million) decreased by $1.5 million (28%) as there was a significant data license sale in 2013 which was not replicated in 2014. Revenue in the Seismic Data segment ($2.7 million) decreased by $4.6 million (63%) due to a decrease in seismic participation revenue caused by reduced exploratory activity in the oil and gas industry. To date there have been no new seismic participation revenue projects initiated in 2014, and all revenue in 2014 was attributable to the projects carried forward from Q4 2013. It is anticipated that significant new seismic participation surveys will be initiated later this year. Revenue in the Services segment ($5.3 million) decreased by $0.7 million (12%) with geomatics, processing and land management services all experiencing weaker demand as compared to the same period in 2013. The Company has $0.8 million in funds from operations for the first half of 2014.

Operating expenses decreased by $1.5 million (12%) to $11.1 million in for the first six months of 2014 as a result of the aforementioned cost cutting measures recently introduced.

The increase in finance costs of $11,000 (2%) in the first six months of 2014 was mainly due to a slightly higher cost of debt in 2014 compared the same period in 2013.

Depreciation and amortization ($5.2 million) increased by $1.1 million (27%) mainly due to higher amortization of new seismic data acquired in 2014.

A refund of income tax was recorded in Q1 2014 of $31,000. No current tax provision was recorded in the six months ending June 30, 2014 and June 30, 2013 due to tax losses available. No deferred tax provision was recorded as the Company has not recognized any benefit associated with its tax pools as it is not probable that the asset would be realized.

Business Seasonality

Although the Company's Software & Data segment has relatively constant recurring revenue throughout the year from its license and subscription sales, some of the Company's other segment revenues fluctuate due to seasonal influences on oil and gas industry activities.

Seismic data acquisitions are usually completed in the winter season when the ground is frozen allowing access of heavy equipment with minimal disruption of agricultural fields. This affects the timing of recognition of revenues in the Seismic data segment. Additionally, the Services segment normally exhibits a noticeable reduction in sales in the spring and summer months and a noticeable increase in sales during the fall and winter months when significant drilling and exploration activities are underway in North America. To the extent possible, Divestco minimizes these fluctuations by performing specific types of contract work appropriate for lower-activity months.

Financial Position

Divestco ended Q2 2014 with a working capital deficit of $6.3 million (December 31, 2013: $2.3 million deficit), excluding deferred revenue of $2.6 million (December 31, 2013 - $2.8 million). The increase in working capital deficit from the end of 2013 was primarily due to an unpredictably slow Q1 2014 and lower activity in Q2 2014 as well as the Company's term loan under its senior credit facility becoming all current. Subsequent to June 30, 2014, the Company's senior lender indicated its intention to terminate its credit facilities. Total amounts drawn and currently owning on the credit facilities have been paid down to approximately $3 million from $4.6 million at June 30, 2014.

The Company recently entered into discussions with a number of arm's length parties with the intention of selling certain corporate assets. Management has also commenced discussion with alternative lenders to replace the banking facility. All discussions are preliminary and there is no assurance any transaction will proceed.

The Company expects to settle its liabilities in the near term by using funds from operations, completing an asset disposition and obtaining an alternative senior credit facility. The outcome of these events cannot be predicted at this time.

Mr. Stephen Popadynetz, CEO commented: "The delays that Divestco noted at the end of the first quarter continued through our second quarter of 2014. All of our groups experienced flat demand except for our seismic related divisions, which experienced reduced demands for services and data. Divestco has addressed its current lender request by reducing its bank debt by 40% in the last 60 days and feels confident that the facility will be retired shortly. As a result, Divestco is anticipating a significant refocus of its businesses and a much improved balance sheet which will allow it to pursue new and exciting growth strategies in the subsequent quarters."

Operations Update and Outlook

For the last half of 2014 management anticipates Seismic data segment revenues to significantly increase given current and anticipated drilling, asset acquisition and corporate consolidation activities of oil and gas producers, which is being driven by recently renewed investment in the sector. This activity is also expected to drive increases in Software & Data and Services segment revenues, both domestically and internationally (particularly in Colombia, where the Company has had recent success in driving new business opportunities). In the second half of 2014, the Company will be introducing its new geophysical interpretation product that received excellent reviews at the Houston SEG conference in the fall of 2013 and at the May 2014 CSEG Conference in Calgary.

About the Company

Divestco is an exploration services company that provides a comprehensive and integrated portfolio of data, software, and services to the oil and gas industry. Through continued commitment to align and bundle products and services to generate value for customers, Divestco is creating an unparalleled set of integrated solutions and unique benefits for the marketplace. Divestco's breadth of data, software and services offers customers the ability to access and analyze the information required to make business decisions and to optimize their success in the upstream oil and gas industry. Divestco is headquartered in Calgary, Alberta, Canada and trades on the TSX Venture Exchange under the symbol "DVT".

Additional information on the Company is available on its website at Divestco.com and on SEDAR at sedar.com.

Neither 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 news release.

This press release contains forward-looking information related to the Company's capital expenditures, projected growth, view and outlook with respect to future oil and gas prices and market conditions, and demand for its products and services. Statements that contain words such as "could', "should", "can", "anticipate", "expect", "believe", "will", "may" and similar expressions and statements relating to matters that are not historical facts constitute "forward-looking information" within the meaning applicable by Canadian securities legislation. Although management of the Company believes that the expectations reflected in such forward-looking information are reasonable, there can be no assurance that such expectations will prove to have been correct because, should one or more of the risks materialize, or should the assumptions underlying forward-looking statements or forward-looking information prove incorrect, actual results may vary materially from those described in this press release as intended, planned, anticipated, believed, estimated or expected. Readers should not place undue reliance on forward-looking statements or forward-looking information. All of the forward-looking statements and forward-looking information of the Company contained in this press release are expressly qualified, in their entirety, by this cautionary statement. Except where required by law, the Company does not assume any obligation to update these forward-looking statements or forward-looking information if conditions or opinions should change.

In particular, this press release contains forward-looking statements pertaining to the following: Company's ability to keep debt and liquidity at acceptable levels, improve/maintain its working capital position and maintain profitability in the current economy; availability of external and internal funding for future operations; relative future competitive position of the Company; nature and timing of growth; oil and natural gas production levels; planned capital expenditure programs; supply and demand for oil and natural gas; future demand for products/services; commodity prices; impact of Canadian federal and provincial governmental regulation on the Company; expected levels of operating costs, finance costs and other costs and expenses; future ability to execute acquisitions and dispositions of assets or businesses; expectations regarding the Company's ability to raise capital and to add to seismic data through new seismic shoots and acquisition of existing seismic data; treatment under tax laws; and new accounting pronouncements.

These forward-looking statements are based upon assumptions including: future prices for crude oil and natural gas; future interest rates and future availability of debt and equity financing will be at levels and costs that allow the Company to manage, operate and finance its business and develop its software products and various oil and gas datasets including its seismic data library, and meet its future obligations; the regulatory framework in respect of royalties, taxes and environmental matters applicable to the Company and its customers will not become so onerous on both the Company and its customers as to preclude the Company and its customers from viably managing, operating and financing its business and the development of its software and data; and that the Company will continue to be able to identify, attract and employ qualified staff and obtain the outside expertise as well as specialized and other equipment it requires to manage, operate and finance its business and develop its properties.

These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the Company's control, including: general economic, market and business conditions; volatility in market prices for crude oil and natural gas; ability of Divestco's clients to explore for, develop and produce oil and gas; availability of financing and capital; fluctuations in interest rates; demand for the Company's product and services; weather and climate conditions; competitive actions by other companies; availability of skilled labour; failure to obtain regulatory approvals in a timely manner; adverse conditions in the debt and equity markets; and government actions including changes in environment and other regulation.

Divestco Inc.
Mr. Stephen Popadynetz
CEO, President and CFO
587-952-8152

Divestco Inc.
Mr. Danny Chiarastella
Vice President, Finance
587-952-8027
www.divestco.com

CALGARY , Aug. 29, 2014 /CNW/ - Petromanas Energy Inc. ("Petromanas", or the "Company") (TSXV: PMI) today announced that it has granted 2,000,000 stock options to an executive of Petromanas pursuant to the Corporation's approved stock option plan. The options are exercisable at a price of $0.40 per share with one third vesting annually over a period of three years with the first tranche becoming exercisable on August 27, 2015 . All options expire on August 27, 2019 .

About Petromanas Energy Inc.

Petromanas Energy Inc. is an international oil and gas company focused on the exploration and development of its assets in Albania . Petromanas, through its wholly-owned subsidiary, holds two Production Sharing Contracts ("PSCs") with the Albanian government.  Under the terms of the PSCs, Petromanas has a 25% working interest in Blocks 2-3 that comprise more than 850,000 gross acres across Albania's Berati thrust belt. Petromanas also holds exploration assets in France and Australia .

The foregoing information may contain forward-looking information relating to the future performance of the Company, including but not limited to the future resource quantifications of the Company. Forward looking information is subject to a number of known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated in our forward looking statements. Such risks and other factors include, among others, the actual results of exploration activities, changes in world commodity markets or equity markets, the risks of the petroleum industry including, without limitation, those associated with the environment, delays in obtaining governmental approvals, permits or financing or political risks in the completion of development or construction activities, title disputes, change in government and changes to regulations affecting the oil and gas industry, and other risks and uncertainties detailed from time to time in the Company's filings with the Canadian securities administrators (available at www.SEDAR.com ). Forward-looking statements are made based on various assumptions and on management's beliefs, estimates and opinions on the date the statements are made. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in the forward-looking information contained herein. The Company undertakes no obligation to update forward-looking statements if these assumptions, beliefs, estimates and opinions or other circumstances should change, except as required by applicable law.

Neither 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.

SOURCE Petromanas Energy Inc.

Petromanas Energy Inc. announces grant of stock options

Canada NewsWire

CALGARY , Aug. 29, 2014 /CNW/ - Petromanas Energy Inc. ("Petromanas", or the "Company") (TSXV: PMI) today announced that it has granted 2,000,000 stock options to an executive of Petromanas pursuant to the Corporation's approved stock option plan. The options are exercisable at a price of $0.40 per share with one third vesting annually over a period of three years with the first tranche becoming exercisable on August 27, 2015 . All options expire on August 27, 2019 .

About Petromanas Energy Inc.

Petromanas Energy Inc. is an international oil and gas company focused on the exploration and development of its assets in Albania . Petromanas, through its wholly-owned subsidiary, holds two Production Sharing Contracts ("PSCs") with the Albanian government.  Under the terms of the PSCs, Petromanas has a 25% working interest in Blocks 2-3 that comprise more than 850,000 gross acres across Albania's Berati thrust belt. Petromanas also holds exploration assets in France and Australia .

The foregoing information may contain forward-looking information relating to the future performance of the Company, including but not limited to the future resource quantifications of the Company. Forward looking information is subject to a number of known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated in our forward looking statements. Such risks and other factors include, among others, the actual results of exploration activities, changes in world commodity markets or equity markets, the risks of the petroleum industry including, without limitation, those associated with the environment, delays in obtaining governmental approvals, permits or financing or political risks in the completion of development or construction activities, title disputes, change in government and changes to regulations affecting the oil and gas industry, and other risks and uncertainties detailed from time to time in the Company's filings with the Canadian securities administrators (available at www.SEDAR.com ). Forward-looking statements are made based on various assumptions and on management's beliefs, estimates and opinions on the date the statements are made. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in the forward-looking information contained herein. The Company undertakes no obligation to update forward-looking statements if these assumptions, beliefs, estimates and opinions or other circumstances should change, except as required by applicable law.

Neither 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.

SOURCE Petromanas Energy Inc.

CALGARY , Aug. 29, 2014 /CNW/ - Ironhorse Oil & Gas Inc. ("Ironhorse" or the "Company") (TSX-V: IOG) announces its financial and operating results for the three and six months ended June 30, 2014 and provides an operational update on activities to date this year as well as an outlook for the remainder of 2014.Â

Financial and Operation Summary

The Company's working capital position has remained strong at $2.3 million at June 30, 2014 , compared with $2.2 million at March 31 , 2014. Although the Pembina Nisku wells were placed on production in early March of 2014, the Company's reported Q2 production has stayed flat at 30 boe/d, as compared to the first quarter of 2014. Production from the Pembina wells was restricted due to insufficient blend gas volumes at the Sinopec Daylight Energy Ltd. (Sinopec) operated 13-2 battery.

Since onset of production in early March of 2014, the Company's share of sales volume from the Nisku L2L pool was 1,700 boe. The Pembina Nisku producing wells are tied in to the Sinopec operated 13-2 battery and are contract operated by Sinopec. The two wells produced intermittently throughout the quarter due to insufficient blend gas at the battery site. The licensed maximum hydrogen sulphide (H2S) concentration of the pipeline leaving the 13-2 battery requires the solution gas from the two Nisku wells be reduced to 10% using a blend gas stream. Sinopec had indicated sufficient blend gas volumes would be available throughout the quarter from new wells being brought on production to the 13-2 battery.  However, the blend gas volumes producing to the 13-2 battery were not sufficient to reduce the H2S levels to the required pipeline specifications which resulted in the Pembina production being severely restricted.

An alternative source of blend gas was obtained which required construction and tie in of a gas pipeline to the Sinopec battery.   On July 17, 2014 the tie in for blend gas was completed and test production began. The Pembina 9-05 well was brought back on production for testing. The Pembina 9-05 well was tested for 11 days at an average of 600 gross bbls/d of oil (net 94 bbls/d), at a 16% choke rate (choked back 84%).  The 9-05 well was then shut in and the 14-05 commenced test at restricted rates. The flow rate, averaging 440 gross bbls/d of oil (net 69 bbls/d) and subsequent low flowing temperature, caused wax to form at surface, requiring the well to be shut-in. The 14-05 well has now been brought back on production to complete flow testing. Â

Although sufficient blend gas is currently available to allow the producing rate of both Nisku wells to be increased, additional upgrades by Sinopec at the 13-2 battery are required in order for the wells to be produced at significantly higher rates. These upgrades include installation of a new separator, additional compression, and a vapour recovery unit. Battery upgrade plans are being reviewed and discussed with Sinopec.

During the quarter, the Company and its working partners received approval from the Alberta Energy Regulator (AER) for water injection and an Enhanced Recovery Application Scheme. The approval allows for immediate water injection and Good Production Practice (GPP) status.

SELECTED INFORMATION

For three months ended

June 30,

March 31,

June 30,

($ thousands except per share & unit amounts)

2014

2014

2013

Financial

Petroleum and natural gas revenues (1)

157

134

449

Funds from operations (2)

98

(44)

9

   Per share – basic and diluted

-

-

-

Net income (loss)

51

(82)

(209)

   Per share – basic and diluted

-

-

(0.01)

Capital expenditures (3)

-

636

44

Operation

Production

  Oil & NGL (bbl/d)

11

8

40

  Gas (mcf/d)

112

124

435

  Total (boe/d)

30

28

113

Petroleum and natural gas revenues ($/boe)

57.59

52.87

43.62

Royalties  ($/boe)

3.53

(10.85)

(10.97)

Operating expenses ($/boe)

(9.35)

(11.77)

(15.49)

Operating netback ($/boe)

51.77

30.25

17.16

(1)

 Petroleum and natural gas revenues are before royalty expense.

(2)

 Funds from operations and net debt are non-GAAP measures as defined in the Advisory section of the MD&A.

(3)

Capital expenditures are before acquisitions and dispositions.

Â

Additional Information

Ironhorse's complete results for the three and six months ended June 30, 2014 , including unaudited condensed financial statements and the management's discussion and analysis are available on SEDAR or the Company's web site at www.ihorse.ca

About Ironhorse:

Ironhorse Oil & Gas Inc. is a Calgary -based junior oil and natural gas production company trading on the TSX Venture Exchange under the symbol "IOG."

Forward-looking statements:

Statements throughout this release that are not historical facts may be considered to be "forward looking statements." These forward looking statements sometimes include words to the effect that management believes or expects a stated condition or result. All estimates and statements that describe the Company's objectives, goals, or future plans, including management's assessment of future plans and operations, drilling plans and timing thereof, expected production rates and additions and the expected levels of activities may constitute forward-looking statements under applicable securities laws and necessarily involve risks including, without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, volatility of commodity prices, imprecision of reserve estimates, environmental risks, competition from other producers, incorrect assessment of the value of acquisitions, failure to complete and/or 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 and changes in the regulatory and taxation environment. As a consequence, the Company's actual results may differ materially from those expressed in, or implied by, the forward-looking statements. Forward-looking statements or information are based on a number of factors and assumptions which have been used to develop such statements and information but which may prove to be incorrect. Although the Company believes that the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward-looking statements because the Company can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified in this document, assumptions have been made regarding, among other things: the ability of the Company to obtain 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 manor; and field production rates and decline rates. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect the Company's operations and financial results are included elsewhere herein and in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website ( www.sedar.com ). Furthermore, the forward-looking statements contained in this release are made as at the date of this release.

Boe Conversion – Certain natural gas volumes have been converted to barrels of oil equivalent ("boe") whereby six thousand cubic feet (mcf) of natural gas is equal to one barrel (bbl) of oil. This conversion ratio is based on an energy equivalency conversion applicable at the burner tip and does not represent a value equivalency at the wellhead.

"Neither 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."

SOURCE Ironhorse Oil & Gas Inc.

Ironhorse Announces Q2 2014 Financial and Operating Results

Canada NewsWire

CALGARY , Aug. 29, 2014 /CNW/ - Ironhorse Oil & Gas Inc. ("Ironhorse" or the "Company") (TSX-V: IOG) announces its financial and operating results for the three and six months ended June 30, 2014 and provides an operational update on activities to date this year as well as an outlook for the remainder of 2014.

Financial and Operation Summary

The Company's working capital position has remained strong at $2.3 million at June 30, 2014 , compared with $2.2 million at March 31 , 2014. Although the Pembina Nisku wells were placed on production in early March of 2014, the Company's reported Q2 production has stayed flat at 30 boe/d, as compared to the first quarter of 2014. Production from the Pembina wells was restricted due to insufficient blend gas volumes at the Sinopec Daylight Energy Ltd. (Sinopec) operated 13-2 battery.

Since onset of production in early March of 2014, the Company's share of sales volume from the Nisku L2L pool was 1,700 boe. The Pembina Nisku producing wells are tied in to the Sinopec operated 13-2 battery and are contract operated by Sinopec. The two wells produced intermittently throughout the quarter due to insufficient blend gas at the battery site. The licensed maximum hydrogen sulphide (H2S) concentration of the pipeline leaving the 13-2 battery requires the solution gas from the two Nisku wells be reduced to 10% using a blend gas stream. Sinopec had indicated sufficient blend gas volumes would be available throughout the quarter from new wells being brought on production to the 13-2 battery.  However, the blend gas volumes producing to the 13-2 battery were not sufficient to reduce the H2S levels to the required pipeline specifications which resulted in the Pembina production being severely restricted.

An alternative source of blend gas was obtained which required construction and tie in of a gas pipeline to the Sinopec battery.   On July 17, 2014 the tie in for blend gas was completed and test production began. The Pembina 9-05 well was brought back on production for testing. The Pembina 9-05 well was tested for 11 days at an average of 600 gross bbls/d of oil (net 94 bbls/d), at a 16% choke rate (choked back 84%).  The 9-05 well was then shut in and the 14-05 commenced test at restricted rates. The flow rate, averaging 440 gross bbls/d of oil (net 69 bbls/d) and subsequent low flowing temperature, caused wax to form at surface, requiring the well to be shut-in. The 14-05 well has now been brought back on production to complete flow testing.

Although sufficient blend gas is currently available to allow the producing rate of both Nisku wells to be increased, additional upgrades by Sinopec at the 13-2 battery are required in order for the wells to be produced at significantly higher rates. These upgrades include installation of a new separator, additional compression, and a vapour recovery unit. Battery upgrade plans are being reviewed and discussed with Sinopec.

During the quarter, the Company and its working partners received approval from the Alberta Energy Regulator (AER) for water injection and an Enhanced Recovery Application Scheme. The approval allows for immediate water injection and Good Production Practice (GPP) status.

SELECTED INFORMATION


For three months ended



June 30,

March 31,

June 30,

($ thousands except per share & unit amounts)


2014

2014

2013

Financial





Petroleum and natural gas revenues (1)


157

134

449

Funds from operations (2)


98

(44)

9

Per share – basic and diluted


-

-

-

Net income (loss)


51

(82)

(209)

Per share – basic and diluted


-

-

(0.01)

Capital expenditures (3)


-

636

44

Operation





Production





Oil & NGL (bbl/d)


11

8

40

Gas (mcf/d)


112

124

435

Total (boe/d)


30

28

113

Petroleum and natural gas revenues ($/boe)


57.59

52.87

43.62

Royalties  ($/boe)


3.53

(10.85)

(10.97)

Operating expenses ($/boe)


(9.35)

(11.77)

(15.49)

Operating netback ($/boe)


51.77

30.25

17.16

(1)

Petroleum and natural gas revenues are before royalty expense.

(2)

Funds from operations and net debt are non-GAAP measures as defined in the Advisory section of the MD&A.

(3)

Capital expenditures are before acquisitions and dispositions.

Additional Information

Ironhorse's complete results for the three and six months ended June 30, 2014 , including unaudited condensed financial statements and the management's discussion and analysis are available on SEDAR or the Company's web site at www.ihorse.ca

About Ironhorse:

Ironhorse Oil & Gas Inc. is a Calgary -based junior oil and natural gas production company trading on the TSX Venture Exchange under the symbol "IOG."

Forward-looking statements:

Statements throughout this release that are not historical facts may be considered to be "forward looking statements." These forward looking statements sometimes include words to the effect that management believes or expects a stated condition or result. All estimates and statements that describe the Company's objectives, goals, or future plans, including management's assessment of future plans and operations, drilling plans and timing thereof, expected production rates and additions and the expected levels of activities may constitute forward-looking statements under applicable securities laws and necessarily involve risks including, without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, volatility of commodity prices, imprecision of reserve estimates, environmental risks, competition from other producers, incorrect assessment of the value of acquisitions, failure to complete and/or 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 and changes in the regulatory and taxation environment. As a consequence, the Company's actual results may differ materially from those expressed in, or implied by, the forward-looking statements. Forward-looking statements or information are based on a number of factors and assumptions which have been used to develop such statements and information but which may prove to be incorrect. Although the Company believes that the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward-looking statements because the Company can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified in this document, assumptions have been made regarding, among other things: the ability of the Company to obtain 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 manor; and field production rates and decline rates. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect the Company's operations and financial results are included elsewhere herein and in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website ( www.sedar.com ). Furthermore, the forward-looking statements contained in this release are made as at the date of this release.

Boe Conversion – Certain natural gas volumes have been converted to barrels of oil equivalent ("boe") whereby six thousand cubic feet (mcf) of natural gas is equal to one barrel (bbl) of oil. This conversion ratio is based on an energy equivalency conversion applicable at the burner tip and does not represent a value equivalency at the wellhead.

"Neither 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."

SOURCE Ironhorse Oil & Gas Inc.

CALGARY , Aug. 29, 2014 /CNW/ - Hawk Exploration Ltd. (" Hawk " or the " Corporation ") announces today that it has closed its previously announced acquisition of certain petroleum and natural gas assets in the plains region of Alberta and Saskatchewan from TriHawk Energy Ltd. and certain other parties.

About Hawk

Hawk is an emerging exploration company engaged in the exploration, development and production of conventional crude oil and natural gas in western Canada and is based in Calgary, Alberta . The Class A shares of Hawk trade on the TSXV under the trading symbol HWK.A.

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

SOURCE Hawk Exploration Ltd.

Hawk announces closing of asset acquisition

Canada NewsWire

CALGARY , Aug. 29, 2014 /CNW/ - Hawk Exploration Ltd. (" Hawk " or the " Corporation ") announces today that it has closed its previously announced acquisition of certain petroleum and natural gas assets in the plains region of Alberta and Saskatchewan from TriHawk Energy Ltd. and certain other parties.

About Hawk

Hawk is an emerging exploration company engaged in the exploration, development and production of conventional crude oil and natural gas in western Canada and is based in Calgary, Alberta . The Class A shares of Hawk trade on the TSXV under the trading symbol HWK.A.

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

SOURCE Hawk Exploration Ltd.

HOUSTON, TEXAS--(Marketwired - Aug. 29, 2014) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAWS.

Greenfields Petroleum Corporation (the " Company " or " Greenfields ") (TSX VENTURE:GNF)(TSX VENTURE:GNF.DB), an independent exploration and production company with producing assets in Azerbaijan, announces its financial results and operating highlights for the second quarter and year-to-date of 2014. Except as otherwise indicated, all dollar amounts referenced herein are expressed in United States dollars.

Second Quarter and Year-to-Date 2014 Financial Results and Operating Highlights

  • For the second quarter and year-to-date 2014, the Company recorded revenues of $0.5 million and $0.9 million and realized net losses of $4.9 million and $3.8 million, respectively. For the second quarter and year-to-date 2014, the results represented a loss per share (basic and diluted) of $0.24 and $0.20, respectively. In comparison with the same periods in 2013, the Company recorded revenues of $0.7 million and $1.4 million and realized net income of $0.5 million and a net loss of $3.3 million, respectively. In addition, in comparison with the same periods in 2013, the Company realized earnings per share of $0.03 and a loss per share of $0.21, respectively.
  • The Company's 33.33% share of Bahar Energy Limited (" Bahar Energy ") entitlement sales volumes averaged 321 bbl/d and 6,983 mcf/d or 1,485 boe/d in the second quarter 2014, and 378 bbl/d and 7,980 mcf/d or 1,708 boe/d year-to-date 2014. In comparison to the average volumes for the same periods in 2013, the bbl/d volumes decreased 42% and 24%, respectively, while mcf/d volumes increased 50% and 97% respectively, and boe/d increased 12% and 46%, respectively.
  • For the second quarter and year-to-date 2014, the Company, through its interest in Bahar Energy, realized average oil prices of $101.83 and $102.13 per barrel, respectively. These prices compared favorably in comparison with the averages of $97.52 and $101.26 per barrel realized for the same periods in 2013. The Company, through its interest in Bahar Energy, realizes average gas prices of $3.96 per mcf, which is a contractually constant fixed price.
  • The Company's 33.33% share of Bahar Energy financial results provided a net loss of $0.2 million in the second quarter and net income of $3.0 million year-to-date. These results compare to net income of $1.1 million and a net loss of $1.0 million, respectively, for the same periods in 2013.
  • On April 17, 2014, Bahar Energy Operating Company (" BEOC ") informed SOCAR that on March 31, 2014, BEOC met the TPR2 (1) requirement in accordance with the ERDPSA. By achieving this production target, SOA, with a 20% interest, is obligated to pay its share of costs and will also start repayment of the contractual carry that has been in place since the beginning of the project from their respective share of petroleum revenues attributable to cost recovery.
    (1) TPR2 refers to Target Production Rate 2 under the ERDPSA whereby BEOC must maintain a daily production rate for 30 consecutive days equal to 2 times the average 2008 production rate, that rate being 9,258 boe/d.

Operating highlights and plans

  • Work continued in the second quarter 2014 on the recording, processing and interpretation of up to 200 square kilometers of 3D seismic over the Gum Deniz Oil Field, which was contracted in 2013. At the end of the quarter, a total of 46.4 square kilometers of data had been acquired. Strong winds and seas continued to impede the seismic acquisition. The acquisition rate has not improved as was expected during the spring and summer months. The Company intends on continuing to acquire as much data as possible prior to the onset of winter weather. Once the new data is acquired, processed, and interpreted, the revised Gum Deniz Oil Field reservoir model will be used to improve well site selection for the drilling program.
  • The interpretation of the 3D seismic survey on the Bahar-2 exploration block recorded in 2012 concluded during the second quarter of 2014. Calibration of the wells to the seismic using Vertical Seismic Profile (VSP) was completed and fluid substitution models were calculated to determine the amplitude versus offset (AVO) response of the seismic. The AVO analysis will be done during the third quarter and the Company intends on evaluating the multiple anomalies seen in the interpretation.
  • A total of 19 workovers were conducted in the Gum Deniz Oil Field during the second quarter for a total of 29 workovers year-to-date. The workover activity, coupled with additional well service jobs, has largely contributed to maintaining production. In the Bahar Gas Field, 3 recompletions were performed during the quarter for a total of 5 recompletions year-to-date. These recompletions have contributed to material gas volume increases over 2013 volumes.
  • Drilling in the Gum Deniz Oil Field was suspended in late March after drilling the 774 well due to unfavorable subsurface results from the last two wells, funding shortfalls by our partner in Bahar Energy and insufficient insurance by a drilling contractor. During the suspension, the focus will shift to less capital intensive operations while the Gum Deniz Oil Field 3D seismic is completed and reservoir model revised to improve well site selections. This work will focus on recompletions in the Bahar Gas Field, which have been successful to date at adding significant gas production. Additionally, work in the Gum Deniz Oil Field will center on continued oil recompletions along with production optimization and Electrical Submersible Pump (ESP) installations to maximize production rates.
  • Construction activity during the second quarter continued to focus on platform upgrades, primarily in the Bahar Gas Field, to support workovers, and on facilities improvement in the tank farm and process areas. It is expected that the construction activity will conclude in the third quarter.
  • On July 2, 2014, the Company closed a $21 million loan facility (" Loan ") with an arm's length third party (" Lender ") arranged through Meridian SEZC. Pursuant to the terms of the Loan, the Company is entitled to draw up to an aggregate of US$21 million to meet funding obligations under the Bahar Energy shareholders agreement. A 0.15% commitment fee is payable pursuant to the Loan and the Loan will mature on June 30, 2018. In addition, the amounts drawn by the Company bear interest at a rate of 12% per annum.
  • On July 16, 2014, the Company drew $16.5 million under the Loan to enable Greenfields Petroleum International Company Ltd. (" GPIC "), a wholly-owned subsidiary of the Company, to fund the defaulted obligations of Baghlan Energy Limited (" Baghlan "), the other shareholder of Bahar Energy. With the funding of defaulted obligations, GPIC provides protection to the interest of Bahar Energy in the ERDPSA and ensures that the Bahar Project has adequate working capital for operations. All transaction and financing costs resulting from using the Loan are subject to reimbursement by the defaulting partner. GPIC expects the remaining balance of the Loan will also be drawn down to address Baghlan's additional 2014 funding defaults. (See Defaulting Shareholder paragraph in Note 6 - Investment in Joint Venture to the unaudited consolidated financial statements of the Company for the period ended June 30, 2014.)

Selected Information

The selected information below is from the Greenfields' Management Discussion & Analysis for the three and six months ended June 30, 2014. The Company's complete financial statements as of and for the three and six months ended June 30, 2014 and 2013 with the notes thereto and the related Management's Discussion & Analysis can be found on Greenfields' website at www.Greenfields-Petroleum.com and on SEDAR at www.sedar.com . All amounts below are in thousands of US dollars unless otherwise noted.

Greenfields Petroleum Corporation

(US$000's,except as noted)
Three months ended
June 30
Six months ended
June 30
2014 2013 2014 2013
Financial
Revenues 469 684 896 1,371
Net (loss) income (4,900) 517 (3,799) (3,286)
Per share, basic and diluted ($0.24) $0.03 ($0.20) ($0.21)
Capital Items
Cash and cash equivalents 4,910 6,721
Total Assets 65,772 41,973
Working capital 4,865 7,716
Convertible debt and Shareholders' equity 63,802 39,704

Bahar Energy Limited (a Joint Venture)

Total Joint Venture Company's share
(US$000's,except as noted) Three months ended June 30
2014 2013 2014 2013
Financial
Revenues 17,453 20,996 5,817 6,998
Net (loss) income (558) 3,270 (186) 1,090
Operating
Average Entitlement Sales Volumes (1)
Oil and condensate (bbl/d) 964 1,667 321 556
Natural gas (mcf/d) 20,952 13,936 6,983 4,645
Barrel oil equivalent (boe/d) 4,456 3,990 1,485 1,330
Average Oil Price
Oil price ($/bbl) $101.83 $97.52 $101.83 $97.52
Net realization price ($/bbl) $99.47 $95.56 $99.47 $95.56
Brent oil price ($/bbl) $109.69 $102.56 $109.69 $102.56
Natural gas price ($/mcf) $3.96 $3.96 $3.96 $3.96
Capital Items
Total Assets 199,292 139,203 66,424 46,396
Total Liabilities 42,175 40,147 14,058 13,381
Net Assets 157,114 99,056 52,366 33,015
Total Joint Venture Company's share
(US$000's,except as noted) Six months ended June 30
2014 2013 2014 2013
Financial
Revenues 40,351 38,746 13,449 12,914
Net (loss) income 9,099 (2,901) 3,032 (967)
Operating
Average Entitlement Sales Volumes (1)
Oil and condensate (bbl/d) 1,133 1,498 378 499
Natural gas (mcf/d) 23,941 12,132 7,980 4,043
Barrel oil equivalent (boe/d) 5,123 3,520 1,708 1,173
Average Oil Price
Oil price ($/bbl) $102.13 $101.26 $102.13 $101.26
Net realization price ($/bbl) $100.04 $99.26 $100.04 $99.26
Brent oil price ($/bbl) $108.93 $107.26 $108.93 $107.26
Natural gas price ($/mcf) $3.96 $3.96 $3.96 $3.96
Capital Items
Total Assets 199,292 139,203 66,424 46,396
Total Liabilities 42,175 40,147 14,058 13,381
Net Assets 157,114 99,056 52,366 33,015
(1) Daily volumes represent the Company's share of the Contractor Parties entitlement volumes net of compensatory petroleum and the government's share of profit petroleum. Effective October 1, 2013, the compensatory petroleum increased from 5% to 10% where it will remain until specific cumulative oil and gas production milestones are attained.

About Greenfields Petroleum Corporation

Greenfields is a junior oil and natural gas Company focused on the development and production of proven oil and gas reserves principally in the Republic of Azerbaijan. The Company plans to expand its oil and gas assets through further farm-ins, and acquisitions of Production Sharing Agreements from foreign governments containing previously discovered but under-developed international oil and gas fields, also known as "greenfields". More information about the Company may be obtained on the Greenfields website at www.greenfields-petroleum.com .

Forward-Looking Statements

This press release contains forward-looking statements. More particularly, this press release may include, but is not limited to, statements concerning: increased average production, drilling and completion plans and the expected timing thereof, seismic acquisition, construction activity, the Loan and the Company's operational plans. In addition, the use of any of the words "initial", "scheduled", "can", "will", "prior to", "estimate", "anticipate", "believe", "should", "forecast", "future", "continue", "may", "expect", and similar expressions are intended to identify forward-looking statements. The forward-looking statements contained herein are based on certain key expectations and assumptions made by the Company, including, but not limited to, expectations and assumptions concerning the success of optimization and efficiency improvement projects, the availability of capital, current legislation, receipt of required regulatory approval, the success of future drilling and development activities, the performance of existing wells, the performance of new wells, general economic conditions, availability of required equipment and services, weather conditions and prevailing commodity prices. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct.

Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties most of which are beyond the control of Greenfields. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results, performance or achievements could vary materially from those expressed or implied by the forward-looking information. These risks include, but are not limited to, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety, political and environmental risks), commodity price and exchange rate fluctuations, changes in legislation affecting the oil and gas industry and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. Additional risk factors can be found under the heading "Risk Factors" in Greenfields' Annual Information Form and similar headings in Greenfields' Management's Discussion & Analysis which may be viewed on www.sedar.com .

The forward-looking statements contained in this press release are made as of the date hereof and Greenfields undertakes no obligation to update publicly 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 Company's forward-looking information is expressly qualified in its entirety by this cautionary statement.

Notes to Oil and Gas Disclosures

Barrels Oil Equivalent or "boe" may be misleading, particularly if used in isolation. The volumes disclosed in this press release in regards to TPR2 production targets in the footnote under the headings "Second Quarter and Year-to-Date 2014 Financial Results and Operating Highlights" uses a 5.559 mcf: 1boe conversion ratio as the Bahar Contract (ERDPSA) uses a 5.559 mcf: 1boe conversion ratio to measure total field production in calculating the 9,258 boe production thresholds for determining TPR2 target production milestones.

All volumes disclosed elsewhere in this press release use a 6mcf: 1boe, as such is typically used in oil and gas reporting and is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. The Company uses a 6mcf: 1boe ratio to calculate its share of entitlement sales from the Bahar Project for its financial reporting and reserves disclosure.

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.

Greenfields Petroleum Corporation
John W. Harkins
Chief Executive Officer
(832) 234-0800

Greenfields Petroleum Corporation
A. Wayne Curzadd
Chief Financial Officer
(832) 234-0800
[email protected]
www.greenfields-petroleum.com