Fortress Energy to acquire Alvorada Petroleo

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.