SOURCE: BRS Resources Ltd.
DALLAS, TX--(Marketwired - Feb 3, 2014) - BRS Resources Ltd. ("BRS") (TSX VENTURE: BRS) reported in December 2013 that Po Valley Energy Ltd. ("PVE") had completed rig-less well testing of its newly drilled Gradizza-1 discovery well (the "Gradizza Well"). PVE and its farm-in partners, which include AleAnna Resources, LLC ("AleAnna"), have agreed to apply for a Production Concession and anticipate filing the Production Concession Application in early February 2014. BRS holds an interest in the Gradizza Well through its ownership in AleAnna.
PVE initially drilled and tested the Gradizza Well in September 2013 and carried out additional tests in November 2013. The Gradizza Well is located on the top of the crest and intersects 33 ft (10 m) of net gas sand. No gas-water contact was detected. The Gradizza Well tested natural gas at a stabilized rate of approximately 700,000 cubic feet per day, with 500 psi flowing tubing pressure on a 1/4-inch choke. No formation water, pressure decline or gas impurities were recovered during testing, and the bottom-hole pressure measured approximately 1,200 psi.
The following information is a summary of the information in a press release issued by PVE on January 30, 2014, which can be found on PVE's website at www.povalley.com and should be read in conjunction with the disclosure in PVE's press release.
PVE released a Contingent Resource Assessment for the Gradizza Well in which Prospective Resources were reclassified as Contingent Resources. Contingent Resources estimates, assuming a 100% working interest in the Gradizza Well, are summarized as follows: 1C (low case) - 1.6 billion cubic feet (Bcf); 2C (best case) - 3.6 Bcf; C3 (high case) - 8.8 Bcf. Contingent Resources may be re-classified as Reserves based on many factors including economic, legal, environmental, political and regulatory matters, including a preliminary Production Concession must be granted by the Ministry of Economic Development in Italy. The Contingent Resources is comprised of natural gas excluding natural gas liquids.
The Gradizza Well volumes estimates are reported in accordance with SPE/WPC/AAPG/SPEE Petroleum Resource Management System. Contingent Resources are indicated as those quantities of gas estimated, as of a given date, to be potentially recoverable from known accumulations by application of development projects, but which are not currently considered to be commercially recoverable due to one or more contingencies. There is no certainty that it will be commercially viable for PVE to produce any portion of the Contingent Resources.
1C denotes low case estimate scenario of Contingent Resources. When applied to the Gradizza Well, they include the gas volume limited to the gas down to (GDT) and the petro-physical features deriving from the electrical logs and the surrounding wells drilled in the past.
2C denotes best estimate scenario of Contingent Resources. When applied to the Gradizza Well, the 2C includes1C plus the volume limited to the structural closures of the fault block tested by the well.
3C denotes high estimate scenario of Contingent Resources. When applied to the Gradizza Well, the 3C resource includes the 2C resource plus the volume limited to the spill point.
Steve Moore, the President and CEO of BRS, commented, "The Gradizza Well is important to AleAnna and BRS in establishing production in Italy and in broadening and quantifying our prospect portfolio in our adjacent permits. The Gradizza test data are in line with our pre-drill expectations and economic modeling, and we are also pleased with the permitting and operational progress being made by our Gradizza Well partner and operator, PVE."
ADDITIONAL INFORMATION ON THE FIELD
The La Prospera exploration permit, located in the Ferrara province north of Bologna, was awarded in September 2008. A subsequent seismic interpretation of 42 miles (68 km) of ENI seismic lines identified the Gradizza prospect. The Gradizza structure consists of a sandstone Quaternary target (Asti sands Fm.) at a total measured depth of 2,808 ft (856 m). PVE holds a 75% equity interest and operatorship through a joint venture with Petrorep Italiana Spa (15%) and AleAnna (10%).
ABOUT BRS RESOURCES
BRS Resources Ltd. is listed on the TSX Venture Exchange under the symbol BRS. BRS is an upstream oil and gas exploration company focused on the Mediterranean region and, particularly onshore Italy. Currently, BRS owns a 25% after-payout interest in AleAnna. For further information, visit brsresources.com or follow BRS on Twitter @BRSresources and Facebook facebook.com/brsresources.
ABOUT ALEANNA RESOURCES, LLC
AleAnna is a Delaware (U.S.) limited liability company. AleAnna's interests are in Italy, where it is building a presence with nine exploration permits and three permit applications in the Po Valley and Bradano basins, encompassing more than 800,000 acres (3,250 sq km). AleAnna is owned by three experienced oil and gas exploration and production companies, including BRS. AleAnna's web site is www.aleannaresources.com.
ON BEHALF OF THE BOARD OF DIRECTORS
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Disclaimer for Forward-Looking Statements
This press release includes certain "forward-looking statements." Forward-looking statements are statements or projections that involve various risks and uncertainties regarding future events related to BRS's, PVE's and/or AleAnna's plans, including the anticipated filing of the Production Concession Application in early February 2014. Actual results may differ materially from those currently anticipated due to a number of factors beyond the control of BRS, AleAnna, and PVE including any negative change in the law, regulatory or political environment which would negatively affect BRS's or PVE's ability to obtain permits necessary for drilling; BRS/AleAnna's lack of sufficient financing to proceed with proposed drilling; the continued price and demand for natural gas; BRS's ability to hire and retain personnel necessary to successfully operate its business; the speculative nature of natural resource exploration activities; changes in operating costs; changes in economic conditions and conditions in the resource, foreign exchange and other financial markets; changes in investments and exploration expenditure levels; litigation, legislation, environmental, judicial, regulatory, political and competitive developments in areas in which BRS operates; technological, mechanical and operational difficulties encountered in connection with the BRS' activities; and other risk factors detailed in BRS' various filings filed on SEDAR at www.sedar.com. You are urged to consider these factors carefully in evaluating the forward-looking statements contained herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by these cautionary statements. These forward-looking statements are made as of the date hereof and BRS disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise, unless required by applicable law.