Brownstone Energy Inc: The operator of the Gabriella License offshore Israel suspends operations
Tuesday, Feb 12, 2013
Brownstone Energy Inc. (TSXV: BWN; OTCQX: BWSOF) (“Brownstone” or “the Company”) has been informed by the operator of the Gabriella License Offshore Israel, Adira Energy Israel Ltd., that it has suspended all operations with regard to drilling the Gabriella well until further notice. The failure of the 70 percent party Modi in Energy LP (“Modi in”) to fund its obligations under the joint operating agreement was given as the reason for the suspension. Brownstone has met its funding obligations under the joint operating agreement. As a result of the disputes amongst the parties, the Company has not provided funds in support of letters of credit to be posted by Modi in for the Gabriella rig contract. Brownstone will endeavour to continue discussions with its joint operating parties surrounding the drilling and funding of the well.
Brownstone Energy Inc. is a Canadian-based, energy focused company with direct interests in oil and gas exploration projects, including varying interests in three off-shore Israel concessions and in three Colombian blocks in the Llanos basin, as well as other oil and gas interests worldwide. By owning and managing a diversified portfolio of energy-based projects, Brownstone provides shareholders with a unique energy alternative. For additional information, please see Brownstone's website: www.brownstoneenergy.com.
Source: Brownstone Energy Inc.
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