Porto Energy Corp. Concludes Definitive Joint Operating Agreement with Galp for Aljubarrota-3 Concession

THE WOODLANDS, TX, March 27, 2013 /CNW/ - Porto Energy Corp., ("Porto" or the "Company") (TSXV:PEC), a company focused on oil and gas exploration, appraisal and development in Portugal, today announced it has entered into a definitive joint operating agreement ("JOA"), through its wholly-owned subsidiary, Mohave Oil and Gas Corporation, with Petróleos de Portugal - Petrogal, S.A. ("Galp") in connection with its June 2012 farmout agreement relating to the Aljubarrota-3 concession.

In June 2012, the Company entered into a definitive farmout agreement with Galp whereby they paid the Company $4.3 million in back costs as well as their portion of the drilling of the ALC-1 well, approximately $6.15 million, to earn 50% of the Company's rights in the Aljubarrota-3 concession which comprises approximately 300,000 acres onshore Portugal.  Participation in the concession also provides Galp with a working interest in part of the Company's Lias stratigraphic interval within the concession. The assignment of interest was approved by the Portuguese oil and gas authority, Divisão para a Pesquisa e Exploração de Petróleo ("DPEP") in September 2012.  The terms of the JOA are standard and consistent with the provisions of the 2012 Association of International Petroleum Negotiators ("AIPN") model.

"Concluding a definitive JOA formalizes our relationship with Galp and provides a solid foundation on which to proceed," said Joseph P. Ash, President and CEO of Porto.  "Galp's participation provides them a working interest over a significant portion of our Presalt play in the basin, a play type they have been very successful exploiting and developing in Brazil.  We welcome their expertise and we anticipate their exploration team will add valuable experience to our Lias unconventional resource play as well.  This agreement establishes a clear precedent and will serve as a basis for future operating agreements with other partners."

The Company is in the final stages of discussions with Sorgenia International B.V., Netherlands ("Sorgenia"), and Rohöl-Aufsuchungs Aktiengesellschaft, Austria ("RAG"), with respect to formalizing the next phase of exploration for the Lias play.  The Company anticipates providing additional updates within the next 30 days.

About Porto Energy Corp.

Porto Energy Corp. is an international oil and gas company engaged in the exploration of crude oil and natural gas in Portugal, including the appraisal of a gas discovery.  Through its wholly owned subsidiary, Mohave Oil And Gas Corporation (a Texas corporation with branch offices in Portugal), the Company holds working interests in seven concessions in Portugal's Lusitanian Basin totaling 1.3 million net acres. Through its exploration efforts to date, the Company has identified seven major exploration trends over its concessions and generated more than 45 prospects and leads. Porto Energy's shares trade on the TSX Venture Exchange under the ticker symbol "PEC". For more information on Porto Energy visit www.portoenergy.com.

Cautionary Statements

This press release contains certain forward-looking statements.  These statements relate to future events or the Company's future performance.  All statements other than statements of historical fact are forward-looking statements.  The use of any of the words "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "should", "believe", "predict" and "potential" and similar expressions are intended to identify forward-looking statements.  These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. No assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon.  These forward-looking statements are made as of the date of this press release and the Company does not undertake to update any forward-looking statements that are contained in this press release, except in accordance with applicable securities laws.

Neither 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.

SOURCE Porto Energy Corp.

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