VANCOUVER, BRITISH COLUMBIA–(Marketwired – May 24, 2017) – BRS Resources Ltd. (“BRS”) (TSX VENTURE:BRS) is pleased to announce that AleAnna Resources LLC (“AleAnna”) has received the final approvals from the Italian Ministry of Environment and the Italian Ministry of Heritage and Culture on the production concession application for the Gradizza natural gas field development. BRS is active in Italy through its ownership in AleAnna.
These approvals are the last requirement before the Italian Ministry of Economic Development issues the final production concession decree. AleAnna expects the final production concession decree by late summer and anticipates production start-up before the end of the year.
The Gradizza-1 discovery well, drilled in November 2013, is located in AleAnna’s La Prospera permitted area in the eastern section of northern Italy’s Po Valley. The well tested conventional natural gas at a stabilized rate of 800,000 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 was approximately 1,200 psi.
AleAnna’s conventional natural gas reserves in the Gradizza area as of December 31, 2016, evaluated by independent petroleum engineering consultants Chapman Engineering, in accordance with the definitions, standards and procedures contained in the Canadian Oil and Gas Evaluation Handbook and National Instrument 51‐101 – Standards of Disclosure for Oil and Gas Activities were as follows: total proved developed non-producing marketable non-associated conventional gas reserves of 1,504 Mmcf, estimated in the Pleistocene sands based on the logs and production tests of the Gradizza-1 well; proved and probable marketable non-associated conventional gas reserves of 3,188 Mmcf; and proved and probable and possible marketable non-associated conventional gas reserves of 5,617 Mmcf. AleAnna anticipates the need for two more wells to fully develop the field.
In March 2017 AleAnna successfully drilled the Trava 2 exploration well, also located in eastern Po Valley. The Trava 2 well tested at rates up to 1.89 million cubic feet per day, with bottom hole pressures exceeding 1,700 psi. Both the Trava 2 and successful Longanesi exploration wells are in the final stages of approval for production concessions.
“It has been a great year for AleAnna,” said Byron Coulthard, Chairman of BRS. “The Gradizza approvals are another indication of support for AleAnna’s natural gas strategy and validate AleAnna as a natural gas producer in Italy.”
AleAnna holds thirty-one exploration applications and permits for over 2.9 million acres in Italy. To date, AleAnna has also acquired 134,672 acres of 3-D geophysical data, making it the largest owner of on-shore 3-D geophysical data in Italy. Part of AleAnna’s operating strategy is the use of high-resolution 3-D seismic technologies to image subsurface hydrocarbons to more efficiently high-grade prospects while reducing environmental impact and risk.
ON BEHALF OF THE BOARD OF DIRECTORS
Byron Coulthard, President/CEO
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. Actual results may differ materially from those currently anticipated due to a number of factors beyond the control of BRS including any negative change in the law, regulatory or political environment which would negatively affect BRS’s or 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 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.
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