BrazAlta Resources Corp.
TSX VENTURE : BRX

BrazAlta Resources Corp.

February 27, 2008 09:30 ET

BrazAlta Resources Corp. Announces Second Quarter Results

CALGARY, ALBERTA--(Marketwire - Feb. 27, 2008) - BrazAlta Resources Corp. ("BrazAlta" or the "Corporation"); (TSX VENTURE:BRX) is pleased to announce that it has filed its unaudited consolidated financial statements for the six months ended December 31, 2007 ("Financial Statements") and related Management Discussion and Analysis ("MD&A"). Copies of the filed documents may be obtained via SEDAR at www.sedar.com or on the Corporation's website at www.brazalta.com.

HIGHLIGHTS

The Q2-2008 business and operational highlights are outlined in BrazAlta's MD&A located under the Investor Information section of BrazAlta's website: www.brazalta.com/s/FinancialStatements.asp.

Selected financial results outlined below should be read in conjunction with the Corporation's Financial Statements and related MD&A.



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As At and For the Three and Six Months
Ended December 31, Three Months Ended Six Months Ended
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FINANCIAL RESULTS 2007 2006 2007 2006
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($000s), except share data
Petroleum and natural gas sales, net
Brazil 992 689 1,798 1,538
Canada 42 70 98 81
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1,034 759 1,896 1,619
Drilling services revenue 5,257 604 6,260 725
Interest and other 106 115 228 365
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6,397 1,478 8,384 2,709
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Funds used in operations(1) (4,247) (735) (5,331) (1,677)
Per share - basic and diluted (0.05) (0.01) (0.07) (0.03)

Net loss (728) (1,300) (3,450) (2,373)
Per share - basic and diluted (0.01) (0.02) (0.04) (0.04)

Capital expenditures
Brazil 1,682 5,770 6,401 6,153
Canada 202 253 292 378
Northern Ireland - - - -
Brazil drilling services 13,446 745 32,247 1,412
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15,330 6,768 38,940 7,943
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Total assets 82,215 27,006 82,215 27,006

Total long-term liabilities 37,235 229 37,235 229

Weighted average shares outstanding
Basic and diluted (000s) 81,205 54,293 80,390 53,909
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(1) "Funds used in operations" is not a measure that has a standardized meaning prescribed by Canadian GAAP and is considered a no n-GAAP measure. Therefore, this measure may not be comparable to similar measures presented by other issuers. This measure has been presented above in order to provide shareholders and potential investors with additional information regarding the Corporation's liquidity and its ability to generate funds to finance its operations.



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As At and For the
Three and Six Months
Ended December 31, Three Months Ended Six Months Ended
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OPERATING
RESULTS 2007 2006 2007 2006
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Production Brazil Canada Brazil Canada Brazil Canada Brazil Canada
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Crude oil
and NGLs
(bbl/d) 146 1 130 - 139 1 131 1
Natural gas
(mcf/d) - 84 - 63 - 103 - 62
Total (boe
per day) 146 15 130 12 139 18 131 11

Average
prices
Crude oil
and NGLs
($/bbl) 87.39 - 65.91 - 83.26 - 71.90 -
Natural gas
($/mcf) - 6.87 - 7.52 - 7.29 - 7.31
Oil
equivalent
($/boe) 87.39 38.75 65.91 42.44 83.26 41.10 71.90 41.24

Operating
netback
($/boe)
Commodity
revenue 87.39 38.75 65.91 42.44 83.26 41.10 71.90 41.24
Non-
refundable
sales
taxes (6.93) - (1.96) - (7.12) - (2.18) -
Realized
loss on
financial
derivatives (8.94) - - - (4.94) - - -
Royalties (6.59) (9.06) (4.32) (7.14) (5.90) (12.30) (4.75) (5.22)
Transpor-
tation &
processing (12.24) - (12.20) - (12.60) - (12.10) -
Well
workover &
repair (10.68) - - - (9.14) - - -
Operating
expenses (30.31) (27.90) (29.39) (10.62) (30.70) (20.87) (22.37) (11.86)
Netback(2) 11.70 1.79 18.04 24.68 12.86 7.93 30.50 24.16
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(2) "Netback" per boe is calculated as revenues net of sales taxes and royalties, less transportation & processing charges, well workover and repair, operating expenses and then divided by boe produced. Netbacks do not have a standard meaning prescribed by GAAP and therefore may not be comparable to similar measures used by other companies.

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 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.

Contact Information

  • BrazAlta Resources Corp.
    Mr. David R. P. Mears
    President & CEO
    (403) 561-1648
    or
    BrazAlta Resources Corp.
    Mr. Craig F. Nieboer, CA
    CFO
    (403) 237-9925
    Email: info@brazalta.com
    Website: www.brazalta.com