Canada-based Fortress Energy has signed a letter of intent to buy Brazilian oil and gas company Alvorada Petroleo for $37m.
The move will allow the company to acquire a 100% working interest in seven exploration blocks in Brazil’s Reconcavo basin, covering an area of 200km2.
Alvorada also owns three oilfields in various basins of Brazil, currently producing approximately 50 barrels per day of light oil.
Fortress Energy is required to execute a purchase and sale agreement in due course for the acquisition of Alvorada, which is subject to regulatory approval in Brazil and Canada.
