Greenfields Petroleum Corporation Announces Funding the Default of Baghlan Energy Limited

Greenfields Petroleum Corporation Announces Funding the Default of Baghlan 
Energy Limited 
FOR: Greenfields Petroleum Corporation 
JULY 23, 2014 
Greenfields Petroleum Corporation Announces Funding the Default of Baghlan
Energy Limited 
HOUSTON, TEXAS--(Marketwired - July 23, 2014) -  
Greenfields Petroleum Corporation ("Greenfields" or the
"Company") (TSX VENTURE:GNF) (TSX VENTURE:GNF.DB), an independent
exploration and production company with assets in Azerbaijan, announces that
pursuant to the terms of the investment and shareholders agreement (the
"Shareholders Agreement") with respect to Bahar Energy Limited
("BEL"), Greenfields Petroleum International Company Ltd.
("GPIC"), a wholly-owned subsidiary of the Company, has funded, by
way of a loan to BEL, approximately US$16.5 million of defaulted obligations
(the "Default Amount") of the other shareholder of BEL, Baghlan
Energy Limited ("Baghlan"). BEL is the parent of Bahar Energy
Operating Company Limited, being the operating company with respect to the Gum
Deniz Oil Field and Bahar Gas Field. 
Baghlan has failed to fund its share of the costs of BEL in accordance with the
Shareholders Agreement and its funding loan obligation to BEL since January 1,
2014. The Shareholders Agreement provides that in the event of a default by a
shareholder in a funding obligation, the other shareholder is required, by
additional loan, to provide such funds to BEL. To the extent that Baghlan
defaults on its future funding obligations, Greenfields anticipates that it may
also fund such amounts by further loans to BEL. 
As a result of the loan by GPIC of the Default Amount to BEL, pursuant to the
Shareholders Agreement: 
a.  all of Baghlan's loans to BEL have become "last in" loans and will not 
be repaid by BEL until all amounts outstanding under all of GPIC's loans 
to BEL, including the payment of the Default Amount, have been paid by 
BEL to GPIC in full, regardless of when such loans were made my Baghlan; 
b.  Baghlan is deemed to have assigned to GPIC a share of its dividends 
equal to the sum of: (i) the Default Amount; (ii) Greenfields' Cost of 
Funding (as defined in the Shareholders Agreement) of such Default 
Amount; and (iii) a default rate of 4% on such Default Amount computed 
from and including the date on which the Default Amount has been funded 
by GPIC to, but excluding, the date Baghlan remedies the default (the 
"Default Interest"); and  
c.  the right of any directors appointed by Baghlan to BEL to vote at a 
meeting of the board of directors of BEL is suspended until the Default 
Amount has been paid in full, together with the Default Interest. 
Greenfields drew approximately US$16.5 million of the US$21 million available
under the loan facility described in the July 2, 2014 press release of the
Corporation to enable GPIC to fund the Default Amount. 
Mr. Harkins, President and CEO of Greenfields stated that "Greenfields is
disappointed that Baghlan has been unable to fund its share of the Bahar
project and has defaulted on its obligations to BEL. Nevertheless, this default
has permitted BEL to reorganize operations under BEOC and we expect to restore
gross production by year end of this year through a series of oil and gas well
workovers and recompletions to levels of 9000+ BOEPD that were reached in March
2014. We are working closely with SOCAR to revise our 2014 and 2015 Budgets to
re-establish drilling operations in the oil field in 2015. Despite the
underfunding of our partner in 2014, we have maintained the 3D seismic
acquisition in the Gum Deniz oil field, which we feel will be key to
identifying additional development drilling opportunities for the future." 
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 
Forward-Looking Statements  
This press release contains forward-looking statements. More particularly, this
press release may include, but is not limited to, statements concerning the
Company's plans with respect to funding future defaults, operations and
production targets. 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. Actual results could differ materially from
those currently anticipated due to a number of factors and risks. These
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 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
information on these and other factors that could affect the Company's
operations and financial results are included 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 
The forward-looking statements contained in this press release are made as of
the date hereof and the Company 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.  
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) 234-0836
Greenfields Petroleum Corporation
A. Wayne Curzadd
Chief Financial Officer
(832) 234-0835 
INDUSTRY:  Energy and Utilities - Oil and Gas  
-0- Jul/23/2014 21:00 GMT
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