BrazAlta Resources Corp.
TSX VENTURE : BRX

BrazAlta Resources Corp.

December 03, 2007 15:04 ET

BrazAlta Resources Corp. Enters into Farm-Out Agreements and Announces Successful Round 9 Land Bids

CALGARY, ALBERTA--(Marketwire - Dec. 3, 2007) - BrazAlta Resources Corp. (TSX VENTURE:BRX) ("BrazAlta") is pleased to announce together with W.Washington Empreendimentos E Participacoes Ltda. ("W.Washington"), that Petro Latina do Brasil Exploracao e Producao de Petroleo e Gas Natural Ltda. ("PetroLatina") has entered into two farm-in agreements with BrazAlta and W.Washington to earn interests in Blocks 204, 219, 234 and Test Well Block 235; and Blocks 94, 105, 115 and 116, each in the Reconcavo Basin, Brazil, on the following general terms and conditions.

Blocks 204, 219, 234 and Test Well Block 235 - Reconcavo

Under the terms of this farm-in agreement, PetroLatina can earn a 42 percent interest of the Test Well Block 235 and a 42 percent interest of Blocks 204, 219 and 234, all Blocks being located in the State of Bahia in the Reconcavo basin, Brazil, by paying 70% of the costs associated with the drilling of a test well. The test well on Block 235 has spud and it is expected to complete drilling in December 2007.

Blocks 94, 105, 115 and 116 - Reconcavo

Under the terms of the second farm-in agreement, by PetroLatina paying 40% of the costs associated with a 120 square kilometre 3D seismic shoot, it can earn a 12.5% interest in each of Blocks 94, 105, 115 and 116, which are all adjacent to the Fazenda Santa Estevao Field located in the State of Bahia in the Reconcavo basin, Brazil. The licensing and permitting for the seismic program has already commenced.

Brazil Round 9 Land Auction Results

BrazAlta is pleased to also announce that together with Brownstone Ventures Inc. ("Brownstone"), PetroLatina and W.Washington that the Agencia Nacional do Petroleo, Gas Natural e Biocombustiveis ("ANP"), Brazil's National Petroleum Agency, has awarded a consortium led by W.Washington, which is BrazAlta's, Brownstone's and PetroLatina's joint venture partner, 1 onshore block known as REC-T-170, covering approximately 28 square kilometres in the Reconcavo area of North Eastern Brazil. The gross bonus paid and work commitment made for the block was R$35,000 ($19,570) and 1,000 work units. The work units can be satisfied by drilling one well on the block or by paying R$3,000 ($1,677) per unit to the ANP. This is an exploration block and once the concession contract is signed with the ANP, the first exploration period is for a total of three years.

BrazAlta also wishes to announce that it has entered into a consortium agreement (the "Round 9 Agreement") pursuant to which BrazAlta, W.Washington, PetroLatina, and Brownstone will co-operate on the ownership and development of Block REC-T-170 awarded in the recent Round 9 land auctions. Per the terms of the Round 9 Agreement, the parties have agreed to allocate the beneficial ownership of the Round 9 concessions obtained by the parties through a consortium structure with the following working interests: 56.25% to BrazAlta and W.Washington, 25% to PetroLatina and 18.75% to Brownstone.

BrazAlta Round 9 Award - Espirito Santo Basin

In addition, BrazAlta was awarded three blocks in the Round 9 auction in the on-shore Espirito Santo basin ("Espirito Santo Blocks") located in Central Eastern Brazil. The Espirito Santo Blocks acquired in Round 9 are known as Blocks ES-T-318, ES-T-362 and ES-T-380. These exploration blocks cover approximately 30 square kilometers each, and once the concession contract is signed with the ANP, the first exploration period is for a total of three years. The gross bonus paid and work commitment made for the blocks was R$115,000 ($64,300) and 1,020 work units, the work units can be satisfied by drilling one well on Block ES-T-318 and performing other qualifying exploration work on Blocks ES-T-362 and ES-T-380, or by paying R$3,000 ($1,677) per unit to the ANP. The Espirito Santo Blocks are BrazAlta's first entry in this basin as an oil and gas explorer, however it should be noted that BrazAlta's drilling services subsidiary, BCH Ltd., already operates a drilling services base in the region located in Sao Mateus.

Brazil's Round 9 auction of oil and gas exploration concessions saw record bidding activity. Out of 271 concessions on offer, 117 found buyers, bringing over 2.1 billion Brazilian Reais ($1.2 billion) in premiums to the Brazilian government, above the record 1.0 billion Brazilian Reais ($0.6 billion) paid during the seventh annual round two years ago. In the Reconcavo basin there were 32 blocks offered and 29 awarded with total bonuses of R$54,759,695 ($30,617,666) and additional work commitments made of 49,600 work units. Based on R$3,000 per work unit, the total value for the entire Reconcavo basin was R$203,559,700 ($113,815,879) for an average of R$7,019,300 ($3,924,685) per block. In the Espirito Santo basin, there were 10 blocks offered and 8 awarded with total bonuses of R$4,035,670 ($2,256,455) and additional work commitments of 11,050 work units. Based on R$3,000 per work units the total value for the entire Espirito Santo basin was R$37,185,670 ($20,791,540) for an average of R$4,648,209 ($2,598,943) per block.

BrazAlta is a publicly traded a Canadian based international oil and gas corporation primarily engaged in exploration, development and production of oil and gas in Brazil, Northern Ireland and Canada. As a result of its current land holdings, BrazAlta is currently the largest Canadian independent onshore exploration corporation in Brazil. For additional information, please visit BrazAlta's website: www.brazalta.com.

Brownstone Ventures Inc. is a well-financed Canadian-based, energy focused investment company with direct interests in oil and gas exploration projects, including working interests in almost 300,000 acres in the Piceance/Uinta Basins of Colorado and Utah, 295km2 in the Assam/Arakan Basin, Northeast India and 253,000 acres in Rio Negro, Argentina. For additional information, please see Brownstone's website: www.brownstoneventures.com.

PetroLatina is BrazAlta's partner with respect to certain of BrazAlta's Brazilian exploration and production operations in the Reconcavo basin of 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 management and are subject to a number of risks and uncertainties that may cause the actual results to differ materially from those described above. Neither BrazAlta, Brownstone nor PetroLatina take nor 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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