TORONTO, ONTARIO--(Marketwire - April 23, 2012) - Morumbi Resources Inc. (TSX VENTURE:MOC) ("Morumbi" or the "Company") announces that the Company has received total proceeds of $1,165,188 from the exercise of 2,713,320 common share purchase warrants and 326,640 finder's warrants expiring on April 19, 2012.
Bougainville Basin Oil & Gas Ltd. ("BBOG", a PNG subsidiary of Morumbi) has entered into an MOU with Bougainville Basin Exploration Company ("BBEC" a Landowner Company) which was formed by the Babanna and Rabasti Clans with the support and endorsement of the Chiefs in the Bana District of Bougainville. The terms of the MOU contemplate that BBOG will submit, on behalf of the Company and its Landowner Company partner, an Application for a Prospecting Petroleum License over much of the Bougainville Basin which is one of five oil & gas basins located in PNG. PNG is home to ESSO's massive $15 billion PNG LNG project that is expected to produce 6.6 million tonnes of LNG a year starting in 2014 and produce over 9 TCF of natural gas over the life of the project.
The Bougainville Basin is largely unexplored with the only activity to date occurring in the early 1970s when Shell shot 1800 kms of offshore 2D seismic and drilled one exploration to a depth of 1,682 meters after which it was plugged and abandoned. Most recent oil and gas discoveries within PNG have been targeting horizons deeper than those pursued originally by Shell in the 1970s on Bougainville. This has led to significant discoveries of large liquids rich natural gas fields in these deeper horizons resulting in increased exploration activity and interest in PNG's oil and gas opportunities especially by major international oil and gas companies such as Shell, Chevron, Mitsubishi and Talisman.
Morumbi is in the process of finalizing its Application for a Prospecting Petroleum License over the Bougainville Basin. The application will cover 86 graticular blocks covering an area of 6,966 km2 and Morumbi anticipates filing its application prior to the end of May 2012.
Under the terms of the MOU with BBEC, BBOG will fund 100% of the costs of exploration and development and BBEC will retain a 15% interest on any Petroleum Exploration Licences issued with its share of all exploration, development and operating costs recovered from its share of future net production revenues relating to any discoveries. Also under the terms of the MOU with BBEC, Morumbi's PNG subsidiary BBOG, has paid Kina 6,000 (approximately CDN$ 3,000) on signing and has committed to pay a further Kina 3,000 (approximately CDN $1,500) per month to the Landowner Companies to help them carry out their corporate functions.
Morumbi Resources Inc. is a public company with a light oil property in northwest Alberta as well as early stage mineral exploration licenses in PNG. Morumbi is also currently evaluating resource opportunities in Bougainville, PNG by forming strategic relationships with local Landowner Companies with the view to securing oil & gas and mineral exploration licenses on their traditional lands. The Company trades on the TSX Venture Exchange under the symbol "MOC". For more information about Morumbi and the Company's plans visit our website at www.morumbi.ca.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.
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