BrazAlta Resources Corp.
TSX VENTURE : BRX

BrazAlta Resources Corp.

October 03, 2007 17:10 ET

BrazAlta Resources Corp. Completes Second Draw on Debt Facility With Standard Bank Plc

CALGARY, ALBERTA--(Marketwire - Oct. 3, 2007) - BrazAlta Resources Corp. ("BrazAlta" or the "Corporation") (TSX VENTURE:BRX) is pleased to announce that its wholly owned service company BCH Ltd. ("BCH") has completed a second draw, totaling USD$14.53 million, on the previously announced USD$30 million credit facility with a syndicate of lenders led by Standard Bank Plc. BCH completed a first draw on the facility of USD$13.69 million on August 2, 2007, the total funds drawn on the facility to date are USD$28.22 million. The funds from the second draw will be used to complete the purchase of BCH-05, a new diesel electric rated to 3,200 meters, and BCH-06, a new mechanical double rated to 2,800 meters, both rigs are under construction in Canada and are near completion, as well as purchase related ancillary equipment, and mobilize these assets to Brazil.

As previously reported, the facility has a term of five years. Under the terms of the facility, any balance advanced greater than USD$25 million is repayable by December 31, 2007. The remaining balance of the facility is repayable in quarterly installments, comprising of interest only in the first year of the facility, and then in equal quarterly installments of principal plus interest commencing in August 2008 with final payment due in July 2012.

BrazAlta is a publicly traded Canadian based international oil and gas corporation with operations in Brazil, Northern Ireland and Canada.

BCH is BrazAlta's drilling services subsidiary which provides drilling and workover services in Brazil.

This press release may contain statements within the meaning of safe harbour provisions as defined under US Laws and Regulations. The above statements are based on the current expectations and beliefs of BrazAlta's management and are subject to a number of risks and uncertainties that may cause the actual results to differ materially from those described above. BrazAlta does not undertake any responsibility with regard to the accuracy of this press release nor the obligation to update the abovementioned information.

This press release contains certain forward-looking statements within the meaning of applicable securities law. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. The Corporation cannot assure that actual results will be consistent with these forward looking statements. They are made as of the date hereof and are subject to change and the Corporation assumes no obligation to revise or update them to reflect new circumstances, except as required by law. Prospective investors should not place undue reliance on forward looking statements. These factors include the inherent risks involved in the exploration for and development of crude oil and natural gas properties, the uncertainties involved in interpreting drilling results and other geological and geophysical data, fluctuating energy prices, the possibility of cost overruns or unanticipated costs or delays and other uncertainties associated with the oil and gas industry. Other risk factors could include risks associated with negotiating with foreign governments as well as country risk associated with conducting international activities, and other factors, many of which are beyond the control of the Corporation. A barrel of oil equivalent (boe) is derived by converting gas to oil in the ratio of six thousand cubic feet of gas to oil and may be misleading, particularly if used in isolation. A boe conversion is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead, especially in various international jurisdictions.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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