SOURCE: BRS Resources Ltd.

BRS Resources Ltd.

September 12, 2013 09:00 ET

Flow Test Confirms Gradizza-1 Gas Discovery

DALLAS, TX--(Marketwired - Sep 12, 2013) - BRS Resources Ltd. (TSX VENTURE: BRS) is pleased to announce that Po Valley Energy Limited (PVE) has carried out initial testing of the Quaternary gas bearing level of the Gradizza-1 exploration well. BRS is participating in the well through its membership interest in AleAnna Resources, LLC. As previously announced, AleAnna and PVE executed a farm-in agreement which allowed AleAnna to earn a 10% interest in the Gradizza prospect and La Prospera permit.

The Gradizza-1 well encountered good gas shows and a drilling break in the target Pleistocene-age sand interval. After coring and logging, operations confirmed the presence of a gas-bearing reservoir exceeding 33 ft (10 m) in thickness and 7-in. casing was run and cemented to a total depth of 3,372 ft (1,028 m). The well was perforated from 2,808 to 2,822 ft (856 to 860 m), gravel packed, and 2 3/8-in. production tubing installed.

The initial shut-in tubing pressure recorded was 1,110 psi (78 kg/cm2), indicating original pressures and no depletion by any area production. Initial flowing tubing pressures and rates varied by choke size and averaged over 220 psi (15 kg/cm2) in flowing tubing pressure with varying rates between 175,000 to 250,000 cu ft per day (5,000 to 7,000 cu m per day). Although no formation water was associated with gas production during the test, the cleanup process is not complete. The flow rate is expected to improve once cleanup is achieved. The completion zone appears to have minor skin damage that may clean up when the well is released to production or may require stimulation to achieve production potential. PVE will take the next few months to review the data and consider rigless testing to better evaluate the real reservoir capability.

"We're pleased with the initial results of the Gradizza-1 well and look forward to additional testing to get a better gauge of production rates and ultimate recovery," commented Steven Moore, president/CEO of BRS Resources. "What's more significant for BRS and AleAnna Resources is that the Gradizza-1 well affirms the viability of a number of analogous drillable prospects on AleAnna's neighboring Ponte del Diavolo permit."

ABOUT BRS RESOURCES LTD.

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 in particular onshore Italy. BRS's web site is www.brsresources.com.

ON BEHALF OF THE BOARD OF DIRECTORS

Steven Moore
President/CEO
Phone: 214.276.0373

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 the Company's and/or AleAnna's plans. Forward-looking statements in this news release include statements regarding: (i) AleAnna's proposed drilling prospects and the estimated timing of same; (ii) AleAnna's reserve potential and expected economics; (iii) AleAnna's discussions with working-interest partners and participation by other parties in the exploration of its projects; and (iv) AleAnna's future drilling goals generally. Actual results may differ materially from those currently anticipated due to a number of factors beyond the control of the Company and AleAnna. These risks and uncertainties include, among other things, any negative change in the law, regulatory or political environment which would negatively affect BRS/AleAnna'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 the operating costs, changes in economic conditions and conditions in the resource, foreign exchange and other financial markets, changes in the 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 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.

Contact Information

  • For further information, please contact
    Steven Moore
    214.276.0373
    Email Contact