Fortress Energy Inc. (FEI.TO) announced it has entered into a letter of intent to acquire 100% of the shares of a Brazilian private oil and gas company Alvorada Petroleo S.A. for an acquisition price of US$37 million. Alvorada owns a 100% working interest in 7 exploration Blocks located in the Reconcavo Basin, covering an area of approximately 200 sq km. In addition, Alvorada owns a 100% working interest in three onshore producing oil fields: Bom Lugar, located in the Reconcavo Basin, Jiribatuba, located in the Camamu Basin and Aracaju, located in the Sergipe Basin. These assets have current production of approximately 50 bbls/d of light oil.
The acquisition is subject to completion of due diligence, the execution of a formal purchase and sale agreement in due course and is also subject to regulatory approval in Canada and Brazil.
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