TORONTO, ONTARIO--(Marketwire - Feb 11, 2013) - Brownstone Energy Inc. (TSX VENTURE:BWN)(BWSOF) ("Brownstone" or "the Company") has been informed by the operator of the Gabriella License Offshore Israel, Adira Energy Israel Ltd., that it has suspended all operations with regard to drilling the Gabriella well until further notice. The failure of the 70 percent party Modi in Energy LP ("Modi in") to fund its obligations under the joint operating agreement was given as the reason for the suspension. Brownstone has met its funding obligations under the joint operating agreement. As a result of the disputes amongst the parties, the Company has not provided funds in support of letters of credit to be posted by Modi in for the Gabriella rig contract. Brownstone will endeavour to continue discussions with its joint operating parties surrounding the drilling and funding of the well.
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: www.brownstoneenergy.com.
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 correct.
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 securities laws.
- Investment & Company Information
Jonathan Schroeder, P. Geoph.
President and COO
Brownstone Energy Inc.
Brownstone Energy Inc.
Vice-President Corporate and Legal Affairs