Greenfields Petroleum Corporation Provides Update on Partner Default

HOUSTON, TEXAS--(Marketwired - Dec. 19, 2014) -

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Greenfields Petroleum Corporation ("Greenfields" or the "Company") (TSX VENTURE:GNF)(TSX VENTURE:GNF.DB), an independent exploration and production company with assets in Azerbaijan, is pleased to provide an update on Baghlan Group Limited ("BGL"), being the other shareholder of Bahar Energy Limited ("BEL") and its partner in the Bahar Project.

Greenfields Petroleum Corporation has been advised by BNP Paribas Trust Corporation UK Limited ("BNP") that BNP, in its capacity as trustee under certain loan documents with Baghlan Group FZCO ("Baghlan"), has accelerated the outstanding notes with Baghlan and has taken possession of mortgaged property related thereto. Included in this mortgaged property are Baghlan's shares of BGL. BGL is the owner of 2/3 of the shares of BEL (the "BGL Shares"), while Greenfields Petroleum International Company Ltd. ("GPIC"), a subsidiary of the Company, is the owner of the other 1/3 of the shares of BEL.

As a result, BNP has appointed joint receivers to dispose of the BGL Shares in order to maximize recovery value for the secured creditors in accordance with the joint receivers' statutory duties and their powers. The Company has been advised that the sale of the BGL Shares by the joint receivers is expected to occur within the next six months. Given the default by BGL in its financial obligations to BEL and the Bahar Project, Greenfields views this foreclosure as a favorable event and does not anticipate any negative near term impact on its operations.

In order to fund BGL's financial defaults as is required by GPIC under the BEL shareholders agreement, the Company has delivered a notice to the lender under the US$21 million loan facility announced on July 2, 2014, to draw down an additional US$4.3 million under the loan facility. Following the drawdown, the Company will have drawn down approximately US$20.8 million under the loan facility.

John Harkins, President and CEO of Greenfields, stated that: "The action by BNP is positive news and will hopefully lead to the replacement of BGL with a partner in BEL that is capable of the investment required by the Bahar Project. Once a new partner begins to contribute to the Bahar Project, GPIC is repaid for funding the defaults, and assuming that SOCAR Oil Affiliate funds its obligations as is required under the Joint Operating Agreement, we anticipate that the operator of the Bahar Project, Bahar Energy Operating Company, will be able to re-establish drilling operations in late 2015 with the benefit of the recently acquired 3D seismic over the Gum Deniz Oil Field."