Greenfields Petroleum Corporation: Bahar Energy Limited Ownership Change

01-23-2012

 

CALGARY, ALBERTA--(Marketwire - Jan. 23, 2012) -

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Greenfields Petroleum Corporation (the "Company" or "Greenfields") (TSX VENTURE:GNF) announced today that it has been advised that Baghlan Group FZCO ("Baghlan") has entered into an agreement in principle to acquire Rafi Oil FZE's ("Rafi") 33.33% interest in Bahar Energy Limited ("BEL"). Baghlan is one of the Company's fellow shareholders in BEL and holds a 33.34% interest. Rafi, Baghlan and a subsidiary of Greenfields are currently the three owners of BEL. Greenfields is advised by Baghlan that the Rafi purchase agreement was entered into on January 17, 2012 and is subject to various regulatory approvals, completion of satisfactory financing and other standard conditions in transactions of this nature. After the completion of the acquisition, Baghlan will hold a 66.67% interest in BEL. Greenfields' interest will remain unchanged whether or not the Bahar Acquisition is completed.

BEL is a Dubai-based company which operates and participates in an oil and gas exploration, rehabilitation and development profit sharing agreement ("Bahar ERDPSA") in Azerbaijan. The state-owned oil company, SOCAR, also participates in the Bahar ERDPSA. The proposed sale will have no effect on Greenfields with respect to its existing 33.33% ownership position in BEL, and it will have no effect on BEL's contractual rights or obligations under the Bahar ERDPSA.

John W. Harkins, President and Chief Executive Officer, commented "we are very pleased with Baghlan's announced intent to purchase the Rafi interest in Bahar Energy Limited because it further endorses the significant value and future potential that exists in our Bahar ERDPSA project". BEL is continuing with the rehabilitation and development in the Bahar ERDPSA project, which includes the Gum Deniz oil field and the Bahar gas field which are located in the Caspian Sea in offshore Azerbaijan. The approved 2012 work program involves initiating a two-rig workover program scheduled to start in the first quarter, and a development drilling program scheduled to start in the third quarter.

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.