Greenfields Petroleum Corporation Announces Financial Results for the Three and Nine Months Ended September 30, 2012

HOUSTON, TEXAS–(Marketwire – Nov. 29, 2012) –



Third quarter 2012 operating and financial highlights

— The Corporation’s entitlement sales volumes from production for its net

interest in the Bahar ERDPSA averaged 456 bbl/d and 4,215 mcf/d or 1,159

boe/d in the quarter and 411 bbl/d and 3,998 mcf/d or 1,077 boe/d year-


— Through its interest in Bahar Energy, the Corporation realized average

oil prices of $103.51 per barrel for the quarter and $104.08 per barrel

year-to-date. Realized gas prices have remained constant during 2012 at

the contract price of $3.96 per thousand cubic feet.

Operating highlights and plans

— During the third quarter, ongoing operations focused on production

optimization and preparation for drilling and workover activity.

— Well maintenance and recompletion activities continued during the

quarter using the Soviet-era rigs contracted from SOCAR. Eight wells

were recompleted into new zones providing an estimated 200 bopd gross

(approximately 67 bopd net) increase in production.

— To accommodate rig operations on existing platforms, significant

modifications were made to Gum Deniz Platform 2 and Bahar Platform 196.

Similar work is currently underway to prepare Gum Deniz Platform 208 for

drilling expected to commence in the first quarter 2013. Rehabilitation

work on Bahar Platform 168 will commence in late fourth quarter 2012 in

preparation for workovers planned in 2013.

— The PSG-1 rig, initially contracted as a workover rig, is now undergoing

the final modifications necessary to convert it for drilling. Based on

latest inspection by ModuSpec, the rig should be ready to spud the first

well on Gum Deniz Platform 2 by the end of December. The well, the GD-

715, will target multiple stacked pays in an under-developed area near

the heart of the field. The Operator, BEOC, is presently tendering for

an additional rig for drilling from Gum Deniz Platform 208 during 2013.

— The PSG-2 rig began recompletion work November 25, 2012 on the B-196

well on Platform 196 in the Bahar field. Recompletion work will continue

in the Bahar gas field with workovers planned on Platforms 196 and 168

throughout 2013.

— The Gum Deniz 601 well was spudded on August 20, 2012 from a Gum Island

location to test for oil in a northern extension of the Gum Deniz field.

The test of the lower KaS reservoir revealed it to be tight. The PK

reservoir was then perforated and found to be wet. Further evaluation

will follow once the rig has been moved. Other locations that can be

reached from the Island are being reviewed.

— The Bahar-2 3D program commenced in June 2011, with 87% of the survey

acquired by the end of the third quarter 2012. The survey is expected to

be completed before year end, after which processing and interpretation

will follow. If the interpretation confirms an attractive exploration

prospect in the Bahar-2 exploration area, Bahar Energy will develop an

appropriate drilling strategy to evaluate the prospect.


Selected Information

The selected information below is from the Greenfields’ Management Discussion & Analysis. The Corporation’s complete financial statements as of and for the three and nine months ended September 30, 2012 and 2011, with the notes thereto and the related Management’s Discussion & Analysis can be found either on Greenfields’ website at or on SEDAR at All amounts below are in thousands of US dollars unless otherwise noted.


(US$000’s,except as noted)

Three months ended Nine months ended

September 30 September 30


2012 2011 2012 2011



Revenues 6,956 6,322 19,279 20,682

Net loss (482) (461) (8,341) (1,995)

Per share, basic and diluted $(0.03) $(0.03) $(0.54) $(0.13)

Operating (1)


Oil and condensate (bbl/d) 456 388 411 410

Natural gas (mcf/d) 4,215 4,000 3,998 4,069

Barrel oil equivalent (boe/d) 1,159 1,055 1,077 1,088

Average Oil Price

Oil price ($/bbl) $103.51 $103.93 $104.08 $103.18

Net realization price ($/bbl) $101.63 $100.14 $102.06 $99.31

Brent oil price ($/bbl) $109.61 $113.24 $112.17 $111.88

Natural gas price ($/mcf) $3.96 $3.96 $3.96 $3.96

Capital Items


Cash and cash equivalents 22,594 28,615

Total Assets 101,364 63,094

Working capital (2 ) 23,206 41,040

Convertible debt and shareholders’ equity 56,814 49,914


(1) Daily volumes represent the Corporation’s share of the Contractor

Parties entitlement volumes sold net of 5% compensatory petroleum and

the government’s share of profit petroleum.

(2) Working capital, presented here, is current assets net of current

liabilities (excluding warrants liability).


About Greenfields Petroleum Corporation

Greenfields is a junior oil and natural gas company focused on the development and production of proven oil and gas reserves principally in the Republic of Azerbaijan. The Corporation 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 Corporation may be obtained on the Greenfields website at

Forward Looking Statements

The information and statements in this news release contains certain forward-looking information. This forward-looking information relates to future events or Greenfields’ future performance. In particular, this document contains forward-looking information and statements regarding Greenfields’ future operations and projects. All statements other than statements of historical fact may be forward-looking information. This forward-looking information is subject to certain risks and uncertainties and may be based on assumptions that could cause actual results to differ materially from those anticipated or implied in the forward-looking information. The outcome and timing of the proposed Offering, as well as the Corporation’s actual results, performance or achievement could differ materially from those expressed in, or implied by, such forward-looking information and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking information will transpire or occur or, if any of them do, what benefits that the Corporation will derive from them. 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. The Corporation’s forward-looking information is expressly qualified in its entirety by this cautionary statement. These forward-looking statements are made as of the date of this press release and, except as required by law, the Corporation undertakes no obligation to publicly update or revise any forward-looking information.

This news release does not constitute an offer to sell or the solicitation of an offer to buy any securities of Greenfields in the United States. The Debentures described in this news release (and any common shares of Greenfields issued upon the conversion, redemption or maturity of the Debentures) have not been and will not be registered under the United States Securities Act of 1933, as amended, or the securities laws of any state and may not be offered, sold or delivered in the United States absent an exemption from registration.

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.


Greenfields Petroleum Corporation

John W. Harkins

Chief Executive Officer

(832) 234-0800

Greenfields Petroleum Corporation

A. Wayne Curzadd

Chief Financial Officer

(832) 234-0800

Greenfields Petroleum Corporation

Robin Cook

CHF Senior Account Manager

(416) 868-1079 x 228