Porto Energy Corp. reported that its one year drilling rig contract with KCA Deutag has expired. As a result, the Company will settle all outstanding payables with Deutag including a final demobilization fee of €350,000.

Upon conclusion of these final provisions of the contract, Porto expects to receive its US$2.8 million restricted cash deposit which is currently collateralizing a third party bank guarantee under the terms of the rig contract.

KCA Deutag has informed Porto that it intends to leave the rig stacked at the Company's facility for the near-term with Porto providing for fuel and onsite security.

Tags: KCA DEUTAG, Porto Energy Corp.