Brownstone Energy Partner Enters Into Drilling Contract With Noble Drilling to Drill Gabriella License, Offshore Israel

Brownstone Energy Inc. BWN
7/23/2012 11:38:38 AM
Brownstone Energy Partner Enters Into Drilling Contract With Noble Drilling to Drill Gabriella License, Offshore Israel

TORONTO, ONTARIO--(Marketwire - July 23, 2012) - Brownstone Energy Inc. (TSX VENTURE:BWN)(OTCQX:BWSOF) ("Brownstone" or the "Company") is pleased to announce that further to its press release of June 13, 2012, Modiin Energy L.P. ("Modiin Energy"), on behalf of the Gabriella License consortium, including Adira Energy Ltd. and Brownstone, has executed a detailed drilling contract (the "Agreement") with Noble International Ltd ("Noble Drilling"). The Agreement provides for the drilling of the Gabriella License (the "License") by the Noble Homer Farrington semi-submersible rig prior to the government regulated spud date of June 30, 2013. Jonathan Schroeder, the Company's President, stated that, "Brownstone is pleased with the signing of the Homer Farrington rig contract and is a fundamental key in moving forward on the oil potential in offshore Israel. The Homer Farrington has drilled some of the most successful discovery wells in the Eastern Mediterranean including "Leviathan" offshore Israel and "Block 12" offshore Cyprus."

About the Gabriella License

The Gabriella License is located approximately 10 kilometers northwest of Tel Aviv, in the waters offshore Israel. The block covers an area of approximately 392 square kilometers (97,000 acres) and is in water depths that range from 100 meters on the east side of the block to just over 425 meters on the southwest side of the block. Brownstone holds a 15% Working Interest in the Gabriella License. On March 13, 2012, the Company announced it received an independent resource report prepared by Netherland, Sewell & Associates, Inc. which included a best estimate of 110.1 MMbbl of contingent oil on the Gabriella License on a gross unrisked basis. Full resource report is available on SEDAR (www.sedar.com).

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