BrazAlta Resources Corp.
TSX VENTURE : BRX

BrazAlta Resources Corp.

December 04, 2007 09:30 ET

BrazAlta Resources Corp. Provides Operational Update

CALGARY, ALBERTA--(Marketwire - Dec. 4, 2007) - BrazAlta Resources Corp. ("BrazAlta" or the "Corporation") (TSX VENTURE:BRX) is pleased to announce that the Corporation along with its Brazilian joint-venture partner, W.Washington Empreendimentos E Participacoes Ltda. ("W.Washington"), have successfully completed the remaining four wells out of the previously reported five well summer drilling program, and have begun the second phase of the exploration drilling campaign.

Completion Update

As previously reported the 7FRB-0005-BA well was drilled and completed to a total depth of 2,180 meters. The upper Agua Grande sand has perforated and production tested, it has now been on production for 24 days and has averaged 80 bbls/day of 35 degree API gravity oil. Total fluid is 235 bbls/day with an associated 65% water cut.

As previously reported the 7SA-0042-BA well was drilled to a total depth of 2,010 meters in the Santana Field. The well has now been completed in the Azevedo sands, production tested, and has been on production for 10 days averaging 12 bbl/day of 35 degree API gravity oil with an associated 0.5% water cut.

In the North East area of Reconcavo the company has drilled well 23-01, a shallow exploration target, to total depth of 748 meters. Five meters of the Agua Grande was completed and tested, proving to be fresh water and the well has been abandoned.

As previously reported, during the drilling of 139-01, at a depth of 1816 meters (Gomo Member), a hydrocarbon kick was encountered with fluid to surface. The initial completion program tested the deepest zone, the Agua Grande (7.5 meters), which proved to be wet and the zone has been abandoned. The well was then completed in the Gomo Member (4.0 meters) and initial swab testing recovered parfinic 30 degree API oil. Based on the results of the initial swab testing, the Agencia Nacional do Petroleo, Gas Natural e Biocombustiveis ("ANP"), Brazil's National Petroleum Agency, has granted a new discovery classification on Block 139, and a ring fence area of 13.2 square kilometers surrounding the well has been established. The well will undergo a six month long-term production test to determine commerciality. Facilities are in place and it is expected that initial results of the long-term production test will be released within 120 days. The Corporation is evaluating additional drilling locations in Block 139 to better delineate the discovery and expects to provide a further development plan at the time of releasing the results of the long-term production test.

On-Going Exploration Drilling

The Corporation has recently started the drilling of an exploration target located on block 51 to a projected total depth of 1215 meters. 51-01 is the first well being drilled with the Corporation's recently imported to Brazil single drilling rig named BCH-03, which is owned and operated by the Corporation's wholly-owned oilfield services subsidiary, BCH Ltd.

The Corporation has also spud and set surface casing on exploration well 235-01. The drilling of this well is expected to be completed by the end of December 2007.

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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