BRS Resources Ltd. (TSX.V: BRS) announced that it has jointly acquired an additional 20% interest in AleAnna Resources LLC, increasing BRS’ interest after payout to approximately 25%.
AleAnna Energy LLC is owned 49% by BRS and 51% by Bluescape Resources Company LLC. This partnership acquired the additional 20% membership interest in AleAnna Resources from Saxon Oil Company for a combination of cash and common shares of BRS.
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. On October 7, 2011, BRS Resources reported that it engaged Energy Capital Solutions LLC to raise capital in association with this announcement.
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OAG360 Comments:
Italy currently imports approximately 86% of its natural gas needs. Today’s announcement is a great step forward BRS as the company successfully increased its interest in Italy and exposes itself to greater upside potential. We believe this is great timing for BRS, as the company and its partners are moving closer to the expected spud date on their first well in the Po Valley. OAG360 notes that BRS is still 100% carried on the first well in the Po Valley which greatly complements today’s announcement. If all moves forward as planned, the well is expected to spud in Q4’11. Pro forma AleAnna Energy’s (BRS and Bluescape) additional membership interest purchase from Saxon Oil & Gas, BRS is now the only public exposure to the AleAnna Resources partnership providing great exposure to the Po Valley with experienced operators.
While the company is putting all the moving parts together on the first well, BRS has been active in shooting seismic and identifying future drill sites for the partnerships. On September 27, 2011, BRS announced that it completed a 30,000 acre 3-D seismic acquisition survey on the Ponte Del Diavolo exploration permit area, in the Po Valley, Italy with AleAnna Resources. This shoot was the second onshore 3-D seismic shoot in Italy between BRS and AleAnna. A third total survey request has been filed on the Ponte Dei Grille exploration permit also in the Po Valley.