BrazAlta Resources Corp.

BrazAlta Resources Corp.

November 10, 2006 09:35 ET

BrazAlta Resources Corp. Announces New COO, Acquires Service Rig, Receives Final Regulatory Approval for Private Placement to W.Washington and Provides Operational Update

CALGARY, ALBERTA--(CCNMatthews - Nov. 10, 2006) -


BrazAlta Resources Corp., (TSX VENTURE:BRX) is pleased to announce that Mr. Peter J. Pelensky, P.Eng. has been appointed as the Corporation's Chief Operating Officer effective immediately. Mr. Pelensky is a professional petroleum engineer with over 25 years experience in drilling, operations, production and exploitation combined with a consistent record of achieving production increases. Most recently Mr. Pelensky was Vice President of Operations for Sequoia Oil and Gas Trust. Mr. Pelensky has worked internationally with Ranger Oil and Anglo Albanian Petroleum. We welcome the contribution that Mr. Pelensky will bring to BrazAlta. The final appointment is subject to regulatory approval.

Service Rig Acquired

BrazAlta is pleased to report that it has entered into an agreement to acquire a service rig for USD $900,000. The rig is currently located in Utah and will be transported to Brazil with the expectation of commencing operations by year end.

Final Regulatory Approval Received for Private Placement

BrazAlta is pleased to report that it has received final regulatory approval for its previously announced private placement to W.Washington Empreendimentos E Participacoes Ltda ("W.Washington") of up to 3,010,000 Units at a price of $1.05 per Unit for proceeds of $3,160,500.

Each Unit will be comprised of one common share and one half of one common share purchase warrant. Each Warrant will entitle the holder to acquire one common share at a price $1.20 per common share for a period of 24 months. The private placement was initially announced on or about March 22, 2006 and was approved by the disinterested shareholders at the annual and special meeting of BrazAlta held on February 9, 2006.

Alessandro Novaes is a director of BrazAlta and also owns a minority interest in W.Washington. W.Washington is BrazAlta's partner with respect to BrazAlta's Brazilian operations in the Reconcavo and Sergipe areas of Brazil.

Brazil Operational Update

BrazAlta is pleased to report that it has drilled and cased two locations in the Santana Field, well numbers SA39 and SA40 respectively. The company expects to reach TD on SA 41, a 2,100 meter target, on or about, November 20, 2006.

BrazAlta has been able to attain a Service Rig for the completion of three wells. A completion program has been developed and will be implemented on the locations commencing December 1, 2006.

Grant of Options

BrazAlta has granted 1,165,000 stock options to purchase common shares to officers, employees and consultants of BrazAlta. Of the total granted, 500,000 options were granted to officers of the Corporation. The options are granted with an exercise price of $1.20 and a term of five years.

The stock option grant is subject to regulatory approval. BrazAlta has determined that exemptions from the various requirements of TSX Venture Exchange Policy 5.9 are available for the grant of options.

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

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.

Contact Information

  • BrazAlta Resources Corp.
    Mr. David R. P. Mears
    President & CEO
    (403) 561-1648