Porto Commences Drilling Ops at Portugal Well

Porto Energy has commenced its drilling operations in the Torres Vedras onshore concession in Portugal. The SPC-1 well is the first well of a proposed two to four well exploration drilling program in the Company's Jurassic Reef Trend. The target depth of this well is anticipated to be approximately 1,970 meters and is expected to test multiple Jurassic Reef oil prospect levels as delineated by the Company's recently completed 120 km2 3D seismic survey of this area. The Company expects to reach total depth on this well in approximately thirty days.

The Torres Vedras rig is under contract from KCA Deutag and recently completed the re-entry of the ALJ- 4 well to a depth of 2,600 meters, prior to being moved to the new SPC-1 location. The ALJ-4 well is a direct offset to the Company's ALJ-2 fractured carbonate gas discovery well. The Company recovered 65.25 meters of conventional core and 430 meters of open hole logs in the Jurassic Brenha gas reservoir. The Company is currently testing and analyzing the core, logs and associated data. The Company anticipates results from this testing and analysis within the next three months and has temporarily abandoned the ALJ-4 well until then.

"With the successful re-entry of the ALJ-4 well and the collection of critical engineering and geological data, we continue to advance our asset appraisal and exploration drilling programs on our onshore concessions," said Joseph Ash, President and CEO of Porto.