BrazAlta Resources Corp.

BrazAlta Resources Corp.

April 27, 2007 10:22 ET

BrazAlta Resources Corp. Announces Long-Term Contract Awards with Petroleo Brasileiro S.A. for the Provision of Drilling Services, and Announces Debt Financing Arrangements with Standard Bank Plc

CALGARY, ALBERTA--(CCNMatthews - April 27, 2007) - BrazAlta Resources Corp. (TSX VENTURE:BRX) ("BrazAlta" or the "Corporation") today announced that its wholly-owned oilfield services subsidiary, BCH Ltd. ("BCH"), has been awarded four multi-year contracts with Petroleo Brasileiro S.A. ("Petrobras") for the provision of drilling rigs and related services.

Each contract is for the provision of one on-shore drilling rig and related crew. Two contracts are for a period of two years, with two year renewable options, and two contracts are for a period of 3 years, with three year renewable options. The four rigs will be delivered for operations in Brazil starting July 15, 2007 through to October 15, 2007. The term of each contract will begin on the respective rig delivery dates. The contracts were awarded to fulfill the requirements of Petrobras' expanding on-shore drilling operations and based on BCH's high level of operational and technical performance under the previously announced 100-day drilling contract with Petrobras. In aggregate over their term, the contracts, excluding renewal options, are expected to generate gross revenues of approximately USD$80 million. BrazAlta continues to develop and enhance its operations in Brazil and looks forward to a continued successful relationship with Petrobras.

Debt Financing Arrangements

The Corporation also announced that BCH has entered into a Mandate Letter with Standard Bank Plc for a USD$30 million senior secured term loan to fund the expanding operations of BCH in Brazil.

In addition, the Corporation along with W.Washington Empreendimentos E Participacoes Ltda. ("W.Washington") have jointly entered into a Mandate Letter with Standard Bank Plc for a USD$50 million reserves based revolving line of credit. Based on current reserves estimates as delineated by third party engineering reports, and subject to due diligence by the lender, the Corporation and W.Washington anticipate up to USD$15 million will be available to be drawn upon closing.

Both debt financings are scheduled to close in early June and are subject to certain conditions including, but not limited to, completion of satisfactory due diligence by the lender, and the receipt of all necessary approvals including the approval of the TSX Venture Exchange.

Operational Update

The Corporation announced that the recently acquired deep drilling rig BCH-02 and service rig SR-101, have been successfully imported into Brazil and transported to BCH's base in Reconcavo. Final preparations are being made to ready both rigs for operations. It is expected that BCH-02 (previously referred to as JR-02 in prior press releases) will spud its first well by mid-May, and SR-101's first operation will be the completion operation on the well drilled by BCH-02.

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

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

This press release may contain statements within the meaning of safe harbour provisions as defined under Securities 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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