Official Letter BM&FBOVESPA GEA-1/N°504/2013
RIO DE JANEIRO, Sept. 12, 2013 /CNW/ - HRT Participações em
Petróleo S.A. (the "Company" or "HRT") (BM&FBOVESPA: HRTP3,
TSX-V: HRP) hereby presents clarifications, as requested by
BM&FBOVESPA on the referred Official Letter, received on
September 10th, regarding
the Material Fact released on September
9th. For a better understanding, the transcript of Official
Letter is presented below:
RESULTS OF THE MOOSEHEAD-1 WELL OFFSHORE
NAMIBIA
Rio de
Janeiro, September
9th, 2013 - HRT Participações em Petróleo
S.A. (the "Company" or "HRT") (BM&FBOVESPA: HRTP3, TSX-V:
HRP) announces that the Moosehead-1 well (2713/16-1)
("Moosehead-1"), the third offshore well in our exploratory
drilling campaign, is a dry hole. This well targeted the Moosehead
Prospect, located in Petroleum Exploration License 24 ("PEL-24"),
in the Orange Basin, offshore the Republic of Namibia.
The main objective of the Moosehead-1 well was
to test the resource potential of Barremian-aged carbonate
reservoirs, expected to be equivalent to the Brazil and Angola "pre-salt" reservoirs, within a 546
km2 4-way dip closure, mapped on 3D seismic. Extensive
formation evaluation was performed to confirm the nature and
quality of the carbonate reservoir and source rock intervals,
including wireline logs and sidewall core samples.
The Moosehead-1 well encountered approximately
100m of carbonates at the primary target. The nature of the
reservoir, though further analysis of data collected will be
necessary, appears similar to the "pre-salt" reservoirs as
predicted. However, porosity was less developed than expected in
this location, and is being considered a dry-hole. Wet gas shows
were encountered in the section that increased in wetness with
depth. At least two potential source rocks were penetrated,
including the well-developed Aptian-age source rock. Indications of
source rocks in the deeper rift section were also apparent, though
not penetrated. Further analysis of the well sampling will greatly
help with continuing exploration on the HRT blocks in Namibia.
The Moosehead-1 well was located in 1,716m of
water depth and was drilled to 4,170m of measured total depth. The
well was drilled, wireline logged and P&A, in a total of 47
days, by the Transocean Marianas (NYSE:RIG) semi-submersible rig.
Operational and safety performance was excellent. This completes
HRT's Namibian drilling campaign and the Transocean Marianas is
available for sublease.
HRT is the operator of 10 blocks offshore
Namibia, which are contained in 4
Petroleum Licenses. GALP Energia (NYSE Euronext Lisbon: GALP), with
14% participating interest, is HRT's partner to drill the first 3
wells of the current exploration campaign.
"The Moosehead well concludes HRT's first
drilling campaign in Namibia with
very important geological information even though no pay zones were
found in this well. The time has come for a thorough analysis of
our three well results and assets in Namibia to develop new plans for 2014 and
2015. We conclude this campaign with the understanding that both
the Orange and Walvis basins, tested with drilling, are oil and gas
prone basins, new exploration efforts will bring commercial
hydrocarbon discoveries and that HRT will be part of the future of
Namibian exploration", highlighted Milton Franke, the CEO of HRT.
For additional information, please contact HRT's
Investor Relations Department.
"OFÍCIO/CVM/SEP/GEA-1/N°504/2013
Rio de
Janeiro, September 10,
2013.
To
Mr. Ricardo Bottas Dourado dos Santos
Investor Relations Officer of
HRT Participações em Petróleo S.A.
Avenida Atlântica, n.º 1130, 10º andar - Copacabana
CEP 22021-000 - Rio de Janeiro - RJ
Phone: (21) 2105-9700 / Fax: (21) 2105-9713
E-mail: ri@hrt.com.br
c/c: gre@bvmf.com.br
Subject: Addendum to Material
Fact
Dear Sir,
Reference is made to the Material Fact disclosed on
09.09.2013, at 08:48 p.m. via the IPE
System, under the title "Results of the Moosehead-1 Well Offshore
Namibia".
In this regard, in light of the exploratory, operational and
financial results of the Company, associated with the statements of
the CEO, Mr. Milton Franke, especially:
[....]
"We conclude this campaign with the understanding that both
the Orange and Walvis basins, tested with drilling, are oil and gas
prone basins, new exploration efforts will bring commercial
hydrocarbon discoveries and that HRT will be part of the future of
Namibian exploration",
[....]
Based on the jurisdiction set forth in paragraph 6, article 3
of the CVM Instruction No. 358/2002, we hereby require the
amendment of the referred Material Fact, which should be
complemented with the following information:
i. Description of the steps to be taken by the Executive
Board, due to the termination of the current exploratory campaign
in Namibia;
ii. Financing sources for new exploratory efforts, given the
current financial and equity conditions of the company;
iii. Reasons why the CEO of HRT assures that new exploration
efforts will bring commercial hydrocarbon discoveries;
Lastly, we would like to point out that the amended
Material Fact must include copy of this Official Letter and must be
resubmitted via the IPE System, category "Material Fact", type
"Resubmission due to Request".
We further clarify that it will be incumbent upon the
Superintendence of Corporate Relations, exercising the powers
vested in it by Law, and based on item II, article 9 of Law
6,385/1976, and article 7, combined with article 9 of CVM
Instruction 452/2007, to determine the application of a coercive
fine, in the amount of R$ 1.000,00
(one thousand Brazilian reais), without prejudice to other
administrative sanctions, due to non-compliance with the requests
comprised in this official letter, within 24 (twenty-four)
hours as from the receipt of this letter, which was also sent
by facsimile and email.
Sincerely,
Nilza Maria Silva de Oliveira
Company Follow-Up Manager-1
Fernando Soares Vieira
Corporate Relations Superintendent
Dear Sirs,
Pursuant to the Official Letter GEA-1/N°504/2013 ("Letter") as
of September 10th, 2013,
in which the Company has been asked to present clarifications about
the Material Fact released on September
9th, we hereby inform:
Steps that will be taken by the Executive
Board, due to the termination of the current exploratory campaign
in Namibia:
- The Company has been working on the review of the Business
Plan, in which the activities to be developed in the Namibian
assets in the next 2 years will be defined;
- As per the Minutes of the Board of Directors' meeting held on
September 9 and 10, 2013, on its item
(a.1): […] "The Board of Directors discussed the strategies and
plans to enhance the Company's cash position. The Board of
Directors provided the executive board with the guidelines to
develop an updated business plan with a view to reflecting
significant cost reduction, so that it can assure financial
stability throughout 2014"
- HRT will process all geological and geochemical data sampled
with the drilling of the three exploration wells (Wingat-1,
Murombe-1 and Moosehead-1) and will calibrate their seismic
interpretations and petroleum system modelings aiming to reassess
the current prospects and identify new potential prospects. Based
on these new studies, the Company will search for new partnerships
aiming to carry out future exploratory campaigns in these
basins.
Financing sources for new exploratory
efforts, given the current financial and equity conditions of the
company:
- New exploratory efforts have to be funded through new strategic
partnerships. Two farm-downs (Namibia and Solimões) are under
negotiations with a view to raising funds and sharing the risk. As
disclosed on the Material Fact as of September 4th, 2013 ("Updates on the
Strategic Divestment Program"), the Company announced that: (i)
concluded the sale of its air logistics business (Air Amazonia,
with a fleet of six helicopters), having received US$ 23 million, which may reach up to
US$ 40 million; (ii) performed the
sale of an airplane, having received US$ 1.8
million, and (iii) it is performing the disposal of other
assets (eight helicopters, three airplanes, four heli-transportable
drilling rigs), with an estimated value of around
US$ 80 million, as well as the
disposal of its laboratory (IPEXco), all none-core assets for
E&P activities;
- The activities to be developed in a short-term will be related
to the studies, such as the evaluation of drilled-well results and
reprocessing of already-acquired seismic data, not including new
drillings. In this way, these investments will be associated with
own Company's personnel costs and specialized consultancies.
Reasons why the CEO of HRT assures that new
exploration efforts will bring commercial hydrocarbon
discoveries:
- The sentence quoted by the CEO of HRT refers to the exploratory
efforts to be conducted and commercial hydrocarbon discoveries to
be identified by companies that also hold assets in Namibia and it
reflects only positive expectations under the geological point of
view. This is because, through the execution of 3D seismic surveys
in 2012, and the drilling of three exploration wells in 2013, it
was possible to identify source rocks, and in the first well
drilled by the Company, Wingat-1, high-quality oil samples, however
with no commercial volume;
- As an example of these expectations, new drillings to be
performed in 2014 were announced by companies that also hold
exploration rights in Namibia, and whose results, in case they are
positive, may add value to HRT's assets.
For additional information, please contact HRT's
Investor Relations Department.
Sedar Profile # 00031536
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policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
About HRT
HRT Participações holds one of the largest independent oil and gas
exploration and production companies in Brazil. The HRT Group
comprises six main subsidiaries: IPEX (Integrated Petroleum
Expertise Company Serviços em Petróleo Ltda.), HRT O&G
Exploração e Produção de Petróleo Ltda., HRT Netherlands B.V., HRT
África Petróleo S.A., HRT América Inc. and HRT Canada Inc.. The
Company retains a 55% interest in 19 exploratory blocks in the
Solimões Basin. HRT also operates ten exploratory blocks off the
Namibian coast: eight blocks in the Orange Sub-basin and two blocks
in the Walvis Sub-basin. HRT's team includes PHDs and masters in
geochemistry, geophysics, biology and engineering, most of them
former employees of Petrobras and ANP (Brazil petroleum agency).
HRT is committed to minimizing any possible environmental impacts
in the sites where it acts. Our commitment to the local communities
is towards health conditions, safety and quality of life. For more
information, please visit the Company's website:
www.hrt.com.br/ir
Disclaimer
This news release contains forward-looking statements. All
statements other than statements of historical fact contained in
this news release are forward-looking statements, including,
without limitation, statements regarding our drilling and seismic
plans, operating costs, acquisitions of equipment, expectations of
finding oil, the quality of oil we expect to produce and our other
plans and objectives. Readers can identify many of these statements
by looking for words such as "expects", "believe", "hope" and
"will" and similar words or the negative thereof. Although
management believes that the expectations represented in such
forward-looking statements are reasonable, there can be no
assurance that such expectations will prove to be correct. By their
nature, forward-looking statements require us to make assumptions
and, accordingly, forward-looking statements are subject to
inherent risks and uncertainties. We caution readers of this news
release not to place undue reliance on our forward-looking
statements because a number of factors may cause actual future
circumstances, results, conditions, actions or events to differ
materially from the plans, expectations, estimates or intentions
expressed in the forward-looking statements and the assumptions
underlying the forward-looking statements.
The following risk factors could affect our
operations: the contingent resource and prospective resource
evaluation reports involving a significant degree of uncertainty
and being based on projections that may not prove to be accurate;
inherent risks to the exploration and production of oil and natural
gas; limited operating history as an oil and natural gas
exploration and production company; drilling and other operational
hazards; breakdown or failure of equipment or processes; contractor
or operator errors; non-performance by third party contractors;
labour disputes, disruptions or declines in productivity; increases
in materials or labour costs; inability to attract sufficient
labour; requirements for significant capital investment and
maintenance expenses which HRT may not be able to finance; cost
overruns and delays; exposure to fluctuations in currency and
commodity prices; political and economic conditions in Namibia and
Brazil; complex laws that can affect the cost, manner or
feasibility of doing business; environmental, safety and health
regulation which may become stricter in the future and lead to an
increase in liabilities and capital expenditures, including
indemnity and penalties for environmental damage; early
termination, non-renewal and other similar provisions in concession
contracts; and competition. We caution that this list of factors is
not exhaustive and that, when relying on forward-looking statements
to make decisions, investors and others should also carefully
consider other uncertainties and potential events. The
forward-looking statements herein are made based on the assumption
that our plans and operations will not be affected by such risks,
but that, if our plans and operations are affected by such risks,
the forward-looking statements may become inaccurate.
The forward-looking statements contained herein
are expressly qualified in their entirety by this cautionary
statement. The forward-looking statements included in this news
release are made as of the date of this news release. Except as
required by applicable securities laws, we do not undertake to
update such forward-looking statements.
SOURCE HRT Participações em Petróleo S.A.
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