News out Just in case you guy's didn't see it below....
Porto Energy hires Black Spruce as financial adviser
2012-08-23 18:08 ET - News Release
Mr. Heath Cleaver reports
PORTO ENERGY ENGAGES BLACK SPRUCE MERCHANT CAPITAL TO PROVIDE FINANCIAL ADVISORY SERVICES
Porto Energy Corp. has engaged Black Spruce Merchant Capital Corp. to provide financial advisory services with respect to project and corporate business combinations, as well as equity and debt financings as part of the continuing development on Porto's seven concessions in Portugal's Lusitanian basin.
Porto is currently actively advancing two of its projects in Portugal. First, on June 29, 2012Porto through its wholly owned subsidiary, announced a definitive farmout with PetrA Superscript threeleos de Portugal - Petrogal whereby Galp will pay the Company approximately US$7.8 million to earn 50% of the Company's rights in the Aljuabarrota-3 concession, comprising approximately 300,000 acres, onshore Portugal. Under the terms of the agreement, the Company intends to drill a Presalt well with a target depth of approximately 3,000 meters. Drilling is expected to commence in late August, 2012 and take approximately 45-55 days to complete. This well has a NI51-101 estimate of 588 BCF P50 gross unrisked resources (294 BCF net P50 unrisked resources). Second, on March 1, 2012, Porto announced a definitive agreement with Sorgenia International B.V., Netherlands, and RohAparagraphl-Aufsuchungs Aktiengesellschaft, Austria, to jointly evaluate the unconventional resource potential of the Lower Jurassic (Lias) stratigraphic interval within Porto's concessions in Portugal. Porto retains operatorship of the Company's concessions and the joint venture. With the additions of the two new concessions in May 2012, Zambujal and Peniche, the area to be jointly evaluated is approximately 690,000 acres. The Lias stratigraphic interval is being pursued as an unconventional resource throughout Europe. Second phase activities, for which Porto will be carried for until phase 3, include the drilling of two deep wells and additional geochemical and geophysical analysis. The costs associated with the two wells will be shared equally between the Farm-in Partners capped at a gross cost of US$10.0 million, net of mobilization and demobilization costs. Phase 1 of this joint venture is currently underway with the drilling of 19 wells (9 core wells) of which 11 wells have been drilled and logged to date both inside and outside the AMI to determine the outer extent of the Lias interval over the Lusitanian Basin. The focus of the first phase, which must be completed by December 31, 2012, is on developing a comprehensive geophysical and geochemical analysis of the Lias interval.
Porto continues to pursue interests in its other concessions, most notably its offshore acreage for which the Company has shot and interpreted approximately 1,100 km2 of seismic data. Using this data, the Company has mapped approximately 3 - 4 prospective opportunities.
Upon the engagement of BSMC, the Company issued to BSMC 1,000,000 options exercisable at a price of
.11 per common share for three years to vest one-third every six months from the date of the engagement. In addition, BSMC will be paid a monthly work fee during the term of the engagement, milestone fees in certain circumstances and a financing success fee on the closing of any debt or equity financing provided to Porto.
About Black Spruce Merchant Capital
Black Spruce is a private independent merchant banking company focused on providing executive level and unbiased financial advisory services to the global oil and gas industry. Black Spruce's award winning principals have a history of achieving success for clients based high-level industry focus, strong industry relationships and innovative transaction skills. Offering advice in project, corporate and debt capital markets; equity-linked financings; mergers and acquisitions; and strategic business development.
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