Brownstone Enters Into Settlement Agreement With Gabriella License Partners and
Applies for License Extension
TORONTO, ONTARIO -- (Marketwired) -- 07/01/13 -- Brownstone Energy
Inc. (TSX VENTURE:BWN) (OTCQX:BWSOF) ("Brownstone" or "the Company")
is pleased to announce that it has entered into a settlement
agreement with Adira Energy Israel Ltd ("Adira") and Modiin Energy LP
("Modiin") (collectively the "Consortium Partners") for the drilling
and funding of the Gabriella License (offshore Israel). The
settlement agreement follows the Consortium Partners' disputes over
their respective funding obligations and related suspension of
operations with respect to the Gabriella well in February, 2013.
The settlement agreement provides that the Consortium Partners will
fund their proportionate share of all costs associated with the
Gabriella license that have been incurred in connection with the
drilling of the first well. Brownstone's share of the costs, which
totals approximately US$3.5 million, is payable in stages following
unitholder approval discussed below. The final payment of
approximately US$1.2 million out of the US$3.5 million being
conditional upon funding by the other Consortium Partners.
The settlement agreement also provides the Consortium Partners with
tag-along rights to participate in a farm out of their interests in
the License consummated by the other Consortium Partners and
preserves Brownstone's option to acquire a 10 % interest in the Yam
Hadera License (offshore Israel) owned by Modiin.
The Settlement Agreement is subject to the approval of the unit
holders of Modiin, which is expected to be sought within 15 days. If
the agreement is not so approved, it will terminate.
The Company further announces that the Consortium Partners have
applied to the Minister of Energy and Water of the State of Israel
for an extension of the dates for the execution of the drilling
program to spud the first well on the Gabriella License. The current
spud date expired on June 30, 2013.
Brownstone Energy Inc. is a Canadian-based, energy focused company
with direct interests in oil and gas exploration projects, including
varying interests in three off-shore Israel concessions and in three
Colombian blocks in the Llanos basin, as well as other oil and gas
interests worldwide. By owning and managing a diversified portfolio
of energy-based projects, Brownstone provides shareholders with a
unique energy alternative. For additional information, please see
Brownstone's website: ww.brownstoneenergy.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX enture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
This news release contains forward-looking information and
forward-looking statements within the meaning of applicable
securities laws (together, "forward-looking information"). The use of
any of the words "expect", "anticipate", "continue", "estimate",
"believe", "plans", "intends", "confident", "may", "objective",
"ongoing", "will", "should", "project", "should" and similar
expressions are intended to identify forward-looking information.
The forward-looking information is based on certain key expectations
and assumptions made by the Company, including expectations and
assumptions concerning the operational results in the U.S.A. Although
the Company believes that the expectations and assumptions on which
the forward-looking information are based are reasonable, undue
reliance should not be placed on the forward-looking information
because the Company can give no assurance that they will prove to be
Since forward-looking information addresses future events and
conditions, by its very nature it involves inherent risks and
uncertainties. Actual results could differ materially from those
currently anticipated due to a number of factors and risks. These
include, but are not limited to, the inherent risks involved in the
exploration and development of oil and gas properties, the
uncertainties involved in interpreting drilling results and other
geological data, uncertainties relating to fluctuating oil and gas
prices, the possibility of cost overruns or unanticipated costs and
expenses and other factors including unforeseen delays. Anticipated
exploration and development plans relating to the Company's
properties are subject to change.
The foregoing list of assumptions, risks and uncertainties is not
exhaustive. The forward-looking information contained in this press
release is made as of the date hereof and Brownstone 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
Brownstone Energy Inc.
Jonathan Schroeder, P. Geoph.
President and COO
Brownstone Energy Inc.
Brownstone Energy Inc.
Vice-President Corporate and Legal Affairs
Press spacebar to pause and continue. Press esc to stop.