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BONANZA TO ACQUIRE OIL AND GAS INTERESTS IN ITALY - Announces Consolidation of Outstanding Shares
July 20, 2010
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DALLAS, TX, July 20, 2010 – Bonanza Resources Corporation (“Bonanza” or the “Company”) (TSX.V: BRS) (US TRADING: BRSUF) (FRANKFURT: B4G) is pleased to announce that it has signed a non-binding letter of intent (the “LOI”) with AleAnna Energy LLC (“AE”) to acquire all of AE’s interests in AleAnna Resources LLC (“AleAnna”), a privately owned company with a portfolio of oil and gas assets strategically located in the Po Valley and Bradano basins of Italy. AE’s interest in AleAnna includes a 15% membership interest before payout, an additional back-in interest after payout and a carried interest on drilling the company’s first well, scheduled for early 2011. In accordance with the terms of the LOI, Bonanza has paid AE a non-refundable deposit of $100,000 to secure its obligations, which shall be credited against the purchase price upon the closing of the acquisition. The parties have agreed to enter into a definitive agreement with respect to the acquisition by September 6, 2010. Bonanza will issue a more comprehensive press release if and when it enters into a definitive agreement with AE. Completion of the acquisition is subject to the approval of the TSX Venture Exchange (the “Exchange”).
In Italy, AleAnna has three “Exploration Permits” and eight “Applications for Exploration Permits”, totaling 826,000 acres, approved by the Italian Ministry of Economic Development (General Directorate for Energy and Mining Resources, National Mining Office for Hydrocarbons and Geothermics). Nine of the exploration permit applications, totaling 671,000 acres, are located in the Po Valley in northern Italy, and three exploration permit applications, totaling 155,000 acres, are located in the Bradano Foredeep basin in southern Italy.
In March 2009, AleAnna completed a 126 sq km 3-D seismic survey in the Corte Dei Signori Permit area. AleAnna completed the processing and interpretation of the 3d data in September 2009. Several prospects were generated from this data and a drill location within the Gallare Field was selected as the first drill location. In June 2010, AleAnna submitted a drilling permit to the regional authorities for a well on the Gallare site and approval of the permit is expected by year end, with drilling commencing early in the first quarter of 2011.
AleAnna has two permits in the Ponte Dei Grilli and Ponte Del Diavolo areas that are currently in the 3d seismic acquisition analysis and permitting phase. The Molino, Fantozza, Bugia and Torrente Acqua Fredda applications are expecting approved decrees by the Italian Ministry of Economic Development before year end.
“It is an exciting time to be part of an opportunity to develop Italian oil and gas reserves,” commented Byron Coulthard, President and CEO of Bonanza. “The Italian market relies on the Russian pipeline for the bulk of its natural gas supply. This politically sensitive supply source has destabilized commodity prices and made developing sustainable in-country oil and gas reserves a key objective. AleAnna is uniquely positioned to play a key role in the development of in-country reserves to serve the Italian domestic market.”
Italy has been a major gas producing region in Europe since the late 1940s, with over 4,300 wells drilled in several geologic provinces. The Po Valley is the most prolific gas basin in Italy with over 45 trillion cubic feet of gas recovered from high quality sandstone reservoirs at shallow depths. AleAnna is using state-of-the-art 3-D seismic technology to explore and exploit potential stratigraphic traps and identify other significant geological features. Each of AleAnna’s permitted areas has the potential to yield multiple exploration targets in multiple reservoirs.
In addition, Bonanza announces that, as approved by shareholders at its annual and special meeting held on June 10, 2010, it has determined to proceed with a consolidation of its fully paid and issued common shares on a ratio of one (1) post-consolidation common share for every ten (10) pre-consolidation common shares, subject to receipt of the approval of the Exchange. Further information will be sent to Bonanza’s shareholders upon receipt of Exchange approval. At the completion of the consolidation, the Company will have approximately 5,188,621 shares outstanding. Additional information about the consolidation is available in the information circular that was mailed to shareholders in connection with the meeting and was filed on SEDAR, at www.sedar.com, on May 14, 2010.
About Bonanza Resources Corporation:
Bonanza Resources Corporation is listed on the 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.
ON BEHALF OF THE BOARD
Per: /s/ Byron Coulthard
Byron Coulthard
President and Director
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For further information, please contact:
Bonanza Resources Corporation
+1 604 340-4853
email: info@bonanzaresources.com
website: www.bonanzaresources.com
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.
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