DALLAS, TX--(Marketwire -10/06/11)- BRS Resources Ltd. (TSX-V: BRS.V - News) ("BRS" or the "Company") announces that it has jointly acquired an additional 20% interest in AleAnna Resources LLC ("AleAnna Resources"), an independent oil & gas exploration company operating exclusively in Italy. Italy is one of the stronger markets for natural gas, with natural gas prices two to three times that of the U.S.
AleAnna Resources is one of the largest independent oil and gas exploration and production companies operating in Italy. AleAnna has eight "Exploration Permits" and three "Applications for Exploration Permits," totaling more than 800,000 acres (3,250 sq km). The majority of the acreage is located in Italy's prolific Po Valley, Europe's second largest onshore gas province, where 27 trillion cubic feet of natural gas (Tcf) have been produced and where significant infrastructure is already in place.
"BRS is pleased that AleAnna Energy has completed this transaction with Saxon. For BRS, it strengthens our position in Italy, an area of the world with upside in natural gas exploration and production," commented Steve Moore, president and CEO of BRS. "The acquisition also simplifies the picture for investors. BRS is clearly establishing itself as a player in the European natural gas marketplace."
AleAnna Energy LLC ("AleAnna Energy"), a company owned 49% by BRS and 51% by Bluescape Resources Company LLC ("Bluescape"), acquired the additional 20% membership interest in AleAnna Resources from Saxon Oil Company ("Saxon") for a combination of cash and common shares of BRS (each, a "Share").
AleAnna Energy held 15% of the membership interest in AleAnna Resources, with an additional 20% back-in interest after payout. As a result of the acquisition of the Saxon Interest, AleAnna Energy now owns 35% of AleAnna Resources, with an additional 20% back-in interest. Through its 49% membership interest in AleAnna Energy, BRS owns approximately 25% of AleAnna Resources after payout.
AleAnna Energy paid Saxon a non-refundable deposit to secure its obligations, which was credited against the purchase price of the Saxon Interest in connection with the closing of the acquisition. AleAnna Energy obtained the remaining consideration required for the acquisition by way of capital contributions from BRS and Bluescape. BRS contributed cash and 750,000 Shares to AleAnna Energy as part of its pro rata share of the purchase price. The cash portion of the purchase price will be disclosed in a later press release. Bluescape agreed to provide BRS with a bridge loan equal to the amount of the cash contribution BRS was required to make to AleAnna Energy in connection with the acquisition of the Saxon Interest. AleAnna Energy has issued additional membership units for each of the contributions made by BRS and Bluescape. In consideration of the loan by Bluescape to BRS, Bluescape has taken security over the additional membership units issued to BRS and If BRS fails to repay all or part of the loan on or before November 4, 2011, Bluescape has the right to assume ownership over such number of the additional membership units in AleAnna Energy equal to the then outstanding portion of the loan owed to Bluescape.
Bluescape is a private, independent oil and gas company headquartered in Dallas, Texas (www.bluescaperesources.com). Bluescape is actively involved in unconventional natural gas resource plays in the U.S., most notably the Marcellus and Eagle Ford shale plays.
ABOUT BRS RESOURCES
BRS Resources is listed on the TSX Venture Exchange under the symbol BRS. The Company is an independent international oil and gas company focused on the development and production of oil and natural gas reserves.
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