Brownstone Energy Inc. has received the following operational update for its Colombian operations.

As announced on February 29, 2012, the operator advised that it had planned a workover for the Canaguay-1 well, whereby, a new electric submersible pump ("ESP") was installed at 12,000 feet and a considerable amount of high viscosity emulsion was removed that was plugging the well and limiting its productivity. On March 15, 2012, the well was put back on production and during the first seven days the well produced emulsion and water that had built up during the shut in phase. During this initial stage, management observed that fluid and oil production continued to increase while watercut decreased. During the four days from March 22 to March 25 average fluid production stabilized at approximately 2,000 BFPD, oil production was approximately 1,320 BOPD and water production was approximately 675 BWPD (34% watercut).

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