Bonanza, Bluescape acquire stakes in Italy

Bonanza and Bluescape have completed the acquisition of 100% of the membership interests in AleAnna Energy LLC. AleAnna Energy LLC owns a 15% membership interest in AleAnna Resources LLC, which holds eleven exploration permit applications in the Italian Po Valley and Bradano basins, encompassing a total of 3,100 sq kilometers (760,000 acres).

Bluescape is an equity owner in AleAnna Energy along with Bonanza and provided interim bridge financing to Bonanza to close the acquisition. Once permanent financing is in place, Bonanza and Bluescape will own 49% and 51% of AleAnna Energy, respectively.

In Northern Italy's Po Valley, AleAnna Resources currently holds five active exploration permits. The fifth permit, on the Bugia block, covering 197.8 sq kilometers (48,877 acres), was awarded on September 28th, 2010. AleAnna Resources has four additional permit applications in the Po Valley Region, all of which are expected to be awarded by the end of 2011 or early 2012.

In the Bradano basin in Southern Italy, AleAnna Resources received its first exploration permit for the Torrente Acqua Fredda block, covering 66.24 sq kilometers (16,368 acres) in late October 2010. AleAnna Resources has submitted a second application for a property in the Bradano basin which is expected to be awarded in 2011 or early 2012. These permit application areas are on trend with several recent oil / gas discoveries in the Bradano basin.

AleAnna Resources has an excellent position in the Po Valley, one of the most prolific gas basins in Europe and is the second largest holder of permit application areas behind ENI/Agip. In March 2009, AleAnna Resources completed a 130 sq kilometer (32,124 acres), state-of-the-art 3-D seismic shoot in the Corte dei Signori license area, identifying several significant structural anticlines. AleAnna Resources will drill its first well on the Corte dei Signori license area – Gallare Field – in early 2011. AleAnna Energy is carried on the cost of drilling the first well. AleAnna Energy also holds an additional 20% back-in working interest after payout in AleAnna Resources, which will bring AleAnna Energy's total working interest in AleAnna Resources to 35% after payout.