Greenfields Petroleum Corporation Announces Financial Results for the Year Ended December 31, 2012.

Greenfields Petroleum Corporation Announces Financial Results for the Year 
Ended December 31, 2012. 
HOUSTON, TEXAS -- (Marketwired) -- 05/03/13 --  
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 ("Greenfields" or the "Company")
(TSX VENTURE:GNF), an independent exploration and production company
with assets in Azerbaijan, announces financial results for the year
ended December 31, 2012. 
2012 Annual and Fourth Quarter operating highlights 


 
--  The Corporation's entitlement sales volumes from production for its net
    interest in the Bahar ERDPSA averaged 487 bbl/d and 3,928 mcf/d or 1,141
    boe/d in the quarter and 430 bbl/d and 3,980 mcf/d or 1,093 boe/d for
    the year.
    
--  Through its interest in Bahar Energy, the Corporation realized average
    oil prices of $105.02 per barrel for the quarter and $104.35 per barrel
    year-to-date. Realized gas prices have remained constant during 2012 at
    $3.96 per thousand cubic feet. 
    
--  In October Bahar Energy completed the Gum Deniz 601 well in the northern
    area of the field on Gum Island setting casing at 3,557 meters. Initial
    production rates after clean-up were approximately 90 bbl/d and 800
    BWPD. In November the PSG 2 rig began workover operations on platform
    196 in the Bahar gas field and in late December the first offshore well,
    GD 715, was spudded in the Gum Deniz field on platform 2 with the PSG 1
    drilling rig. 

 
Operating highlights and plans 


 
--  During the year Bahar Energy completed rehabilitation work on platform 2
    in the Gum Deniz field and platform 196 in the Bahar field in
    preparation to receive the PSG 1 drilling rig and PSG 2 workover rig for
    the respective platforms. These platform upgrades to the existing
    structures enabled BEOC to spud the Gum Deniz 715 well on platform 2 on
    December 14, 2012 and begin working over the Bahar 196 well on platform
    196 on November 25, 2012. By year end the topsides on platform 208a in
    the Gum Deniz field had been removed, pile caps fabricated and installed
    and skid beams readied for installation to accept the PSG 3 drilling rig
    during 2013. 
    
--  A land rig was brought in to drill the Gum Deniz 601 well on Gum Island,
    which was successfully completed and placed in service with initial
    production rates of 90 barrels of oil per day and current sustained
    production rates of 60 - 70 barrels of oil per day. This well appears to
    have additional potential and is being reviewed for possible
    recompletion work in late 2013. The offshore drilling program that began
    in Gum Deniz oil field in December 2012 on platform 2 will continue
    throughout 2013 and beyond following the success of the first well, Gum
    Deniz 715, which is currently producing 600 barrels of oil per day. 
    
--  Two 14,600 barrel oil storage tanks were constructed and placed into
    service. 
    
--  During 2012 two seismic data acquisition programs, the 140 line
    kilometer 2D survey in the Gum Deniz field and the 82 square kilometer
    3D in the Bahar-2 exploration area, were completed. After delays related
    to vessel suitability and weather, the 2D project was completed in April
    2012. The data is of good quality. This data has been processed and
    interpreted, and integration with the well control for mapping updates
    is ongoing. The mapping revisions have indicated the possible extension
    of the Gum Deniz oil field off the eastern boundary. Bahar Energy has
    made a request to SOCAR for an extension of the ERDPSA area to capture
    this possible field extension. The request is presently under SOCAR's
    review. 
    
    The 3D acquisition survey over the Bahar-2 exploration area started in
    June 2011 and was completed in December 2012 after acquiring 82 square
    kilometers of 3D data. The data was in processing at year end. After the
    processing and interpretation are completed, if the interpretation
    confirms an attractive exploration prospect, Bahar Energy will develop
    an appropriate drilling strategy to evaluate the commerciality of the
    prospect. 
    
--  Workover and well rehabilitation operations continued throughout 2012. A
    total of 27 well maintenance jobs and 9 well workovers were performed
    using the older Soviet-era rigs contracted from SOCAR. This program was
    successful in performing basic well services, including tubing and gas
    lift repairs. 
    
    Workovers and recompletions performed with these Soviet-era workover
    rigs are limited to pulling tubing, cleaning out sand and performing
    wireline work. They are unable to rotate pipe, perform cementing work or
    do fishing jobs for downhole material. Thus only 9 limited workovers
    were undertaken during 2012 with 7 being successful, adding 150 barrels
    of oil per day of new production. These successful workovers have helped
    maintain field production levels after accounting for well downtimes due
    to operational and weather issues. 
    
--  Bahar Energy plans to upgrade the capability of the Soviet-era workover
    rigs to allow for more efficient well workover operations by late 2013.
    Additional options for well service interventions, selected workovers
    and recompletions will be available once these highly mobile rigs have
    been upgraded. The upgraded workover rigs will continue to be used for
    planned workover operations in the Bahar gas field. 
    
--  Bahar Energy will continue work in 2013 related to construction,
    upgrades and expansion of platforms 2, 208a, 209 in the Gum Deniz field
    and platform 168 in the Bahar field. Areas of focus include platform
    design and construction for extending platform 2, oil and gas processing
    facility upgrades, pipeline replacement, water disposal, electric power
    line installation, support infrastructure and safety monitoring.  
    
--  Bahar Energy expects to drill at least 6 wells in the Gum Deniz field
    and to recomplete approximately 16 wells in Gum Deniz and Bahar fields
    during 2013. The multi-year drilling program is scheduled to drill 83
    new wells in the Gum Deniz field and 7 new wells in the Bahar field.
    Total planned recompletions include 29 in the Gum Deniz field and 40 in
    the Bahar field. 
    
--  Bahar Energy will focus greater effort in the development of the Gum
    Deniz oil field during 2013 and plans to have 3 drilling rigs operating
    in the field by year end. The PSG 2 workover rig currently assigned to
    the Bahar gas field may undergo modifications to allow it to begin
    drilling operations later in 2013. This would add a third drilling rig
    along with the PSG 3 rig presently in preparation to commence drilling
    and the actively drilling PSG 1 rig. 
    
--  To date in 2013 Bahar Energy continues to have success with its workover
    programs and positive progress with new drilling in the Gum Deniz field.
    The Bahar 208 gas well on platform 196 was recompleted using the PSG 2
    workover rig. The well was re-completed in 8 meters (26 feet) of pay in
    Zone 1 and has been flowing at an average rate of 1.24 million cubic
    feet per day. In Gum Deniz field, the 479 well has been recompleted in
    Zone 10 by perforating 9 meters (29 feet) of pay and is currently
    producing 220 barrels of oil per day. In a
ddition, the PSG 1 drilling
    rig has set 13-3/8" surface casing at 450 meters on the Gum Deniz 716
    well, the second new well in the field, and is currently drilling at
    1,539 meters. A larger electrical submersible pump was installed on the
    Gum Deniz 473 well after a smaller pump failed which resulted in
    production increase of 90 barrels of oil per day. 
    
--  Total field production for Q1 2013 averaged 3,275 barrels oil equivalent
    per day (net to Greenfields 1,037 boe/d) and including these recent
    results noted above, current production has increased to approximately
    4,466 barrels oil equivalent per day (net to Greenfields 1,414 boe/d).
    Pursuant to the Production Sharing Agreement, the Contractor Parties are
    required to increase total field production to 6,944 barrels oil
    equivalent per day by June 22, 2014 and the license contract term will
    be extended to the full 25 years. 

 
Selected Information  
The selected information below is from the Greenfields' Management
Discussion & Analysis. The Company's complete financial statements as
of and for the years ended December 31, 2012 and 2011, with the notes
thereto and the related Management's Discussion & Analysis can be
found either on Greenfields' website at www.Greenfields-Petroleum.com
or on SEDAR at www.sedar.com. All amounts below are in thousands of
US dollars unless otherwise noted. 


 
                                                                            
                                                   Years Ended December 31, 
                                                  --------------------------
                                                          2012         2011 
Financial                                                                   
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Revenues                                                26,801       26,801 
Net loss                                               (16,075)     (24,578)
Per share, basic and diluted                         $   (1.04)   $   (1.66)
                                                                            
Operating                                                                   
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Average Entitlement Sales Volumes (1)                                       
Oil and condensate (bbl/d)                                 430          397 
Natural gas (mcf/d)                                      3,980        4,121 
Barrel oil equivalent (boe/d)                            1,093        1,084 
                                                                            
Average Oil Price                                                           
Oil price ($/bbl)                                    $  104.35    $  103.53 
Net realization price ($/bbl)                        $  102.23    $   99.67 
Brent oil price ($/bbl)                              $  111.64    $  111.26 
                                                                            
Natural gas price ($/mcf)                            $    3.96    $    3.96 
                                                                            
Capital Items                                                               
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Cash and cash equivalents                               15,419       25,289 
Working capital (2)                                     13,377       29,674 
Total Assets                                            90,315       53,087 
Convertible debentures and shareholders' equity         38,327       28,481 
                                                                            
(1) Daily volumes represent the Corporation's share of the Contractor       
    Parties' entitlement volumes net of 5% compensatory petroleum and the   
    government's share of profit petroleum.                                 
(2) Working capital, presented here, is current assets net of current       
    liabilities (excluding warrants).                                       

 
The Financial Statements for the year ended December 31, 2011 have
been adjusted to reflect an asset impairment of $8.0 million. For
additional information, please see the Financial Statements and MD&A
as filed on www.sedar.com.  
About Greenfields Petroleum Corporation  
Greenfields is a junior oil and natural gas corporation 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 
The Company's press releases contain forward-looking information that
involve substantial known and unknown risks and uncertainties, most
of which are beyond the control of Greenfields, including, without
limitation, those listed under the headings "Risk Factors" in
Greenfield's Annual Information Form, its Management Information
Circular and similar headings in the Company's Management's
Discussion & Analysis which may be viewed on www.sedar.com.
Forward-looking information in this press release may include, but is
not limited to, information concerning its future operations.  
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. Accordingly, prospective investors should not place
undue reliance on these forward-looking statements. These
forward-looking statements are made as of the date of this press
release and, other than as required by applicable securities laws,
Greenfields does not assume any obligation to update or revise them
to reflect new events or circumstances. 
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. 
Contacts:
Greenfields Petroleum Corporation
John W. Harkins
Chief Executive Officer
(832) 234-0836
info@greenfieldspetroleum.com 
Greenfields Petroleum Corporation
A. Wayne Curzadd
Chief Financial Officer
(832) 234-0835
info@greenfieldspetroleum.com 
Greenfields Petroleum Corporation
Robin Cook
CHF Senior Account Manager
(416) 868-1079 x 228
info@greenfieldspetroleum.com
www.greenfields-petroleum.com
 
 
Press spacebar to pause and continue. Press esc to stop.