BrazAlta Resources Corp.
TSX VENTURE : BRX

BrazAlta Resources Corp.

September 27, 2007 09:30 ET

BrazAlta Resources Corp. Provides Operational Update

CALGARY, ALBERTA--(Marketwire - Sept. 27, 2007) - BrazAlta Resources Corp. ("BrazAlta" or the "Corporation") (TSX VENTURE:BRX) is pleased to announce that the Corporation along with W.Washington Empreendimentos E Participacoes Ltda. ("W.Washington") have successfully completed a five well summer drilling program, and the completion program is underway. Two of the wells drilled were deeper development targets (7FRB-0005-BA previously referred to as FRB-01 in a prior press release, and 7SA-0042-BA previously referred to as SA-01 in prior press releases) of greater than 2,000 meters total vertical depth, and of the three exploration wells, one was a deep well (139-01) and two of the wells were shallow exploration targets (32-01 and 23-01) of less than 800 meters total vertical depth. All of the wells were drilled and cased. Drilling rigs BCH-01 and BCH-02 have now both been released from the BrazAlta/W.Washington drilling program, and are moving to service the previously announced drilling contracts with Petroleo Brasileiro S.A. ("Petrobras"). BCH-01 and BCH-02 will be replaced with newer rigs purchased by BCH Ltd.

BrazAlta and W.Washington have been contracting third party service rigs on a windows basis for the completions as BCH's service rig (SR-101) is not yet operational to perform completions while it awaits ancillary equipment to arrive from North America. As a result, to date only two of the wells drilled have been completed. The 7FRB-0005-BA well was drilled and completed to a total depth of 2,180 meters. The previously reported 5.9 meters of oil pay in the Agua Grande formation is composed of two sands. The upper sand has 2.7 meters of oil at 16% to 17% porosity. The lower sand has 3.2 meters of oil over 2.8 meters of water at 16% to 21% porosity. The lower sand was originally completed but proved to be wet. The well was then completed in the upper sand in an attempt to isolate the water. The upper sand was perforated and production tested, based on 36 hours of swab evaluation, at 103 bbl/day of fluid at 65% to 70% water cut.

The 32-01 shallow exploration well was drilled to a depth of 600 meters. The Agua Grande was not encountered. The Sergi was encountered at 171 meters with a total of 74.5 meters of sand with 18% to 26% porosity. Two of the Sergi units for a total of 10 meters of sand were tested and both proved to be fresh water therefore the well was abandoned.

During the drilling of 139-01, at a depth of 1816 meters (Gomo Member), a hydrocarbon kick was encountered with fluid to surface. The well was brought under control within three days, after 1,100 barrels of emulsion were recovered, and drilling continued to the planned depth of 2070 meters. The primary target zone (Agua Grande) was encountered at 1909 meters. Well 139-01 is the next well scheduled to be completed. A third party service rig is being mobilized to location, and it is expected to begin the completion program on September 27, 2007. The completion program is expected to take 25 to 30 days to complete as five individual zones with a gross total of 51.5 meters of potential pay will be evaluated in the process (7.5 meters in the Agua Grande with 14% to 17% porosity, 4 meters in the Gomo with 10% porosity, and 40 meters in three shallow sands with 24% to 32% porosity).

Shallow exploration well 23-01 was drilled to a depth of 748 meters. The Agua Grande was encountered at 351 meters with a total of 35 meters of sand with 18% to 25% porosity. The completion of this well is scheduled after well 139-01 and will be followed by well 7SA-0042-BA.

BCH Rig Update

As noted above, BCH-01 and BCH-02 have now both been released from the BrazAlta/W.Washington drilling program, and are moving to service the previously announced drilling contracts with Petrobras. BCH-01 is moving to the Espirito Santo region and BCH-02 is moving to the Rio Grande do Norte region. Both are expected to spud their first wells for Petrobras before the end of September. These drilling rigs will be replaced with BCH-03, a four year old single, and BCH-06, a new 2800 meter telescopic mechanical double. Once it arrives, BCH-03 will continue the BrazAlta/W.Washington shallow exploration drilling program. BCH-06 is still under construction but near completion and is expected to arrive on location in Brazil in November.

BCH-04, a mechanical double which will be put to work for Petrobras, left the port of Houston September 23rd and is expected to arrive, along with BCH-03, mid-October in Brazil.

BCH-05, a new diesel electric rated to 3,200 meters which will be put to work for Petrobras, is still under construction and is expected to be shipped in October, along with BCH-06, for arrival in Brazil in November.

SR-101, BCH's service rig, is awaiting ancillary equipment to arrive from North America mid-October before it will be operational.

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.

W.Washington is BrazAlta's partner with respect to BrazAlta's Brazilian exploration and production operations in the Reconcavo, Sergipe and Tucano basins of 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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