Porto Energy Spuds the Alcobaca #1 (ALC-1) Presalt Well with its Joint Venture Partner Galp

    




 THE WOODLANDS, TX, Aug. 30, 2012 /CNW/ - Porto Energy Corp., ("Porto" or the "Company") , a company focused on oil and gas exploration, appraisal  and development in Portugal, is pleased to announce that it has  commenced the drilling of the Alcobaça #1 ("ALC-1") Presalt well in its  Aljubarrota-3 concession onshore Portugal under its joint venture  ("JV") with Petróleos de Portugal - Petrogal ("Galp"). 

 The ALC-1 well is the Company's first Presalt well and is expected to be  drilled to a total depth of approximately 3,000 meters. Using  interpreted 3-D seismic data, the ALC-1 well is targeting a mapped  four-way closure approximately 800 meters high to the ALJ-2 well.   Drilling and testing is estimated to take between 45 and 55 days to  complete at a total anticipated gross well cost, not including  completion and hook-up costs, of approximately $7.0 million.  Galp is  carrying Porto on 50% of the costs associated with the drilling of this  well. 

 "Following the conclusion of our JV with Galp in June 2012, we are  excited about the spudding of this Presalt well," said Joseph Ash,  President and CEO of Porto.  "This Presalt target has an NI51-101  resource best estimate (P50) of 588 BCF gross (294 BCF net) unrisked  prospective resources by Netherland, Sewell & Associates, Inc. which  makes this an extremely important project for us." 

 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 approximately 1.9 million net  acres. Through its exploration efforts to date, the Company has  identified seven major exploration trends over its concessions  including unconventional oil and gas resource plays as well as  conventional oil and gas targets. 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 

 No proved, probable or possible reserves have been assigned by the  Company at this time. Undiscovered resources are those quantities of  oil and gas estimated on a given date to be contained in accumulations  yet to be discovered. Estimates of resources always involve  uncertainty, and the degree of uncertainty can vary widely between  accumulations/projects and over the life of a project. There is no  certainty that it will be commercially viable to produce any portion of  the resources. 

 Estimates with respect to resources that may be developed and produced  in the future are often based upon volumetric calculations,  probabilistic methods and upon analogy to similar types of resources,  rather than upon actual production history. Estimates based on these  methods generally are less reliable than those based on actual  production history. Subsequent evaluation of the same resources based  upon production history will result in variations, which may be  material, in the estimated resources. Resource estimates may require  revision based on actual production experience. 

 Prospective resources are those quantities of petroleum estimated, as of  a given date, to be potentially recoverable from undiscovered  accumulations by application of future development projects. 

 Best Estimate is considered to be the best estimate of the quantity that  will actually be recovered. It is equally likely that the actual  remaining quantities recovered will be greater or less than the best  estimate. Using probabilistic methods, there should be at least a 50  percent probability (P50) that the quantities actually recovered will  equal or exceed the best estimate. 

 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. 

Porto Energy Corp.


CONTACT:  Porto Energy Corp.Heath Cleaver - Chief Financial OfficerPhone: 1-713-975-1725 


    

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