BRS Resources (TSX.V: BRS) announced its third party National Instrument 51-101 compliant report estimates as of October 31, 2011, BRS’ total recoverable reserves (1P, 2P, and 3P) across the 61,628 acre Corte dei Signori (CDS) permit area in the Po Basin of Northern Italy at 17.81 Bcf with future net revenue of $115.47 million net to the Company, discounted at 10% annually.

Proved Reserves (1P) at CDS: BRS’ proved reserves at the Gallare Field in the CDS is 2.21 Bcf of recoverable gas, with future net revenues of $17.25 million before income tax (net of all drilling and completion costs), discounted at 10% annually.

Probable Reserves (2P) at CDS: BRS also said the report indicates probable reserves in the Gallare, Gallare Northwest, Corte Mezzo and Trava structures in the CDS at 7.62 Bcf and future net revenue of $49.54 million net to BRS, discounted at 10% annually.

Possible Reserves (3P) at CDS: BRS’ possible reserves for these structures are estimated to be 7.98 Bcf with future net revenue of $48.68 million, discounted at 10% annually.

Steven Moore, President and CEO of BRS Resources, said in the news release, “…. What’s really exciting is that this reserve and economic evaluation is based on only four geological anomalies in only one of our exploration permits and the total proven reserves come from just one field. On a per share basis, discounted at 10% annually, total proved reserves in this evaluation equates to $0.33 per share outstanding and P2 reserves (total proved plus probable) equates to $1.27 per share outstanding. When you consider we have permits and applications-for-permits totaling more than 800,000 acres, you can start to get a sense for how big the reserves potential is for BRS in Italy.”

Click here for the news release.

OAG360 Comments:

Positive and timely news for BRS as the company projects the spud date for the Gallare 6d well for next month. The Gallare 6d is the company’s first well on the Corte dei Signore permit where today’s announcement reported estimates of approximately 17.81 Bcf of total recoverable reserves (3P). We note that proved reserves increased 25% from the reserve engineers previously assigned 1.7 Bcf net (10.1 Bcf gross) proved undeveloped reserves a year ago that we highlighted in EnerCom’s Catalyst Report.

Shares of BRS Resources were trading at $0.45 per share at the time of posting, up approximately 2.27% for the day and up 15.38% year to date.

BRS is still technically carried on this first well by AleAnna; however, back on October 6, 2011, BRS purchased additional interest in AleAnna Resources (which was Saxon Oil Company’s remaining interest in AleAnna), and acquired working interests that were not carried. Through a 17% membership interest (25% after payout) in AleAnna Resources LLC, BRS is uniquely positioned to grow reserves, production, cash flow and ultimately shareholder value by exploiting its interest in the 800,000 acres onshore Italy that AleAnna controls. AleAnna has eight exploration permits and three applications for exploration permits in Italy.


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