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GeoGlobal Resources, Inc. (GGR) Signs Memorandum of Understanding in Colombia

CALGARY, ALBERTA — (Marketwire) — 09/14/10 — GeoGlobal Resources Inc. (GeoGlobal or the Company) (NYSE Amex: GGR) announces that a Memorandum of Understanding (MOU) has been signed with Petro Caribbean Resources Ltd. (PCR) relating to conducting oil and natural gas exploration and development activities in Colombia, subject to the execution by PCR of definitive agreements with the Colombian National Agency of Hydrocarbons (ANH).

The exploration activities are to be conducted on two onshore exploration blocks located in the Putumayo basin in southwest Colombia known as the Putumayo 6 (PUT 6) and Putumayo 7 (PUT 7) exploration blocks. The PUT 6 and PUT 7 cover an area of approximately 574 and 167 square kilometers, respectively.

Subject to the execution of a Joint Operating Agreement, GeoGlobal will be carried for a 10% participating interest in both the PUT 6 and PUT 7 exploration blocks through the minimum and additional work programs as bid in return for GeoGlobal providing to PCR technical assistance through the exploration phase.

Additionally, GeoGlobal is to have the right to acquire up to an additional 40% participating interest in each of the PUT 6 and PUT 7 exploration blocks exercisable on or before September 21, 2010 unless otherwise agreed and extended by both parties, in consideration of payment to PCR of GeoGlobal’s 40% participating interest share of all third party costs incurred, including performance bonds and guarantees, through exercise of the rights.

Jean Paul Roy, a Director and the former chief executive officer of GeoGlobal, has advised GeoGlobal that his wholly-owned company, Roy Group (Mauritius) Inc. (RGM), has agreed to guarantee the payment and performance of PCR’s obligations under the Colombian exploration and production contracts (the “Guarantee”). In consideration for giving the Guarantee, PCR has agreed that: (i) RGM is entitled for a period of two years to participate in any future equity financings of PCR; (ii) PCR will indemnify RGM against any and all costs which RGM may incur under or in connection with the Guarantee; and (iii) at the request of RGM, PCR will grant RGM a first lien over all of the assets and property of PCR as security for PCR’s obligations under the indemnity.

About GeoGlobal

GeoGlobal Resources Inc., headquartered in Calgary, Alberta, Canada, is a US publicly traded oil and gas company, which, through its subsidiaries, is engaged in the pursuit of petroleum and natural gas through exploration and development in India, Israel and Colombia. The Company has been focused on the development of high potential exploration targets in the Krishna Godavari, Cambay, Deccan Syneclise, and Rajasthan basin areas in India.

Cautionary Statement For Purposes Of The “Safe Harbor” Provisions Of The Private Securities Litigation Reform Act Of 1995

This press release contains statements which constitute forward-looking statements within the meaning of the US Private Securities Litigation Reform Act of 1995, including statements regarding the plans, intentions, beliefs and current expectations of GeoGlobal Resources Inc., its directors, or its officers with respect to the oil and gas exploration, development and drilling activities being conducted and intended to be conducted and the outcome of those activities on the exploration blocks in which the Company has an interest. The company updates forward-looking information related to operations, production and capital spending on a quarterly basis and updates reserves, if any, on an annual basis. The Company’s forward looking statements include, among others, its statements and estimates as to:

--  the statements herein regarding our plans and objectives relating to our
    future operations,
--  plans and objectives regarding the exploration, development and
    production activities conducted on the exploration blocks in India,
    Israel and Colombia where we have interests,
--  plans regarding drilling activities intended to be conducted through the
    ventures in which we are a participant, the success of those drilling
    activities and our ability and the ability of the ventures to complete
    any wells on the exploration blocks, to develop reserves of hydrocarbons
    in commercially marketable quantities, to establish facilities for the
    collection, distribution and marketing of hydrocarbons, to produce oil
    and natural gas in commercial quantities and to realize revenues from
    the sales of those hydrocarbons,
--  our ability to maintain compliance with the terms and conditions of our
    production sharing and other contracts, including the related work
    commitments, to obtain consents, waivers and extensions under the terms
    of these production sharing and other contracts as and when required,
    and our ability to fund those work commitments,
--  our plans and objectives to join with others or to directly seek to
    enter into or acquire interests in additional production sharing or
    other contracts in India, Israel, Colombia and elsewhere,
--  our assumptions, plans and expectations regarding our future capital
    requirements,
--  our plans and intentions to raise additional capital we require and our
    likelihood of success in that regard,
--  the costs and expenses to be incurred in conducting exploration, well
    drilling, development and production activities, our estimates as to the
    anticipated annual costs of those activities and the adequacy of our
    capital to meet our requirements for our present and anticipated levels
    of activities are all forward-looking statements.

We caution you that various risk factors accompany our forward-looking statements and are described, among other places, under the caption “Risk Factors” in our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and our Current Reports on Form 8-K, as well in our press releases. These risk factors could cause our operating results, financial condition and ability to fulfill our plans to differ materially from those expressed in any forward-looking statements made in this press release and could adversely affect our financial condition and our ability to pursue our business strategy and plans. If our plans fail to materialize, your investment will be in jeopardy. Among others, these risk factors include:

--  We cannot assure you that our assumptions or our business plans and
    objectives will prove to be accurate or be able to be attained.
--  We cannot assure you that the exploratory drilling to be conducted on
    the exploration blocks in which we hold an interest will result in a
    discovery of reserves of hydrocarbons or that any hydrocarbons that are
    discovered on the exploration blocks in which we have an interest will
    be in commercially recoverable quantities. In addition, the realization
    of any revenues from commercially recoverable hydrocarbons is dependent
    upon the ability to deliver, store and market any hydrocarbons that are
    discovered.
--  Our ability to realize material revenues cannot be assured. Our ability
    to successfully drill, test and complete significant numbers of
    producing wells cannot be assured.
--  We cannot assure you that we will have available to us the capital
    required to meet our plans and objectives at the times and in the
    amounts required or we will have available to us the amounts we are
    required to fund under the terms of the production sharing and other
    contracts we are a party to. We cannot assure that we will be successful
    in raising the additional capital we currently require.
--  We cannot assure you that we will be successful in joining any further
    ventures seeking to be granted production sharing or other contracts in
    India, Israel, Colombia or elsewhere or that we will be successful in
    acquiring interests in existing ventures.
--  We cannot assure you that we will obtain all required consents, waivers
    and extensions from a governmental or regulatory body in India or Israel
    as and when required to maintain compliance with production sharing or
    other contracts we have entered into, that we may not be adversely
    affected by any delays we may experience in receiving those consents,
    waivers and extensions, and that we may not incur liabilities under the
    production sharing or other contracts for our failure to maintain
    compliance with the requirements of and timely complete the related work
    programs.
--  We cannot assure you that Gujarat State Petroleum Corporation, the
    operator of the KG Offshore Block, may not be successful in its efforts
    to obtain payment from us on account of exploration costs it has
    expended on the KG Offshore Block for which it asserts we are liable or
    otherwise seek to hold us in breach of that Production Sharing Contract
    or commence arbitration proceedings against us and be successful in its
    assertion that it can terminate our contract with them or the Government
    of India.
--  We cannot assure you of our ability to meet our goals and objectives and
    the consequences to us from adverse developments in general economic or
    capital market conditions, events having international consequences, or
    military or terrorist activities could have a material adverse effect on
    us.

An investment in shares of our common stock involves a high degree of risk. Our periodic reports we file with the Securities and Exchange Commission and Canadian provincial authorities may be viewed at http://www.sec.gov and www.sedar.com.

Contacts:
GeoGlobal Resources Inc.
Paul B. Miller
President and CEO
403 777-9250

GeoGlobal Resources Inc.
Carla Boland
Investor Relations and Corporate Affairs
403 777-9250
403 777-9199 (FAX)
info@geoglobal.com
www.geoglobal.com

The Equicom Group
Dave Feick
Managing Director, Western Canada
403 218-2839
403 218-2830 (FAX)
dfeick@equicomgroup.com

Tuesday, September 14th, 2010 Uncategorized
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