RIO DE JANEIRO, March 16, 2015 /CNW/ -
PetroRio1, the new brand of HRT Participações em
Petróleo S.A., (the "Company" or "PetroRio") (BM&FBOVESPA:
HRTP31, TSX-V: HRP1), announces an update on the expected timing of
the geological report to be filed with the TSX Venture Exchange
("TSX-V") in connection with the proposed acquisition of 80% of the
rights and obligations of the concession contracts for the Bijupirá
and Salema Fields and the FPSO
Fluminense.
As previously disclosed (by Material Fact dated
February 13, 2015), the Company has
retained an independent qualified reserves evaluator to prepare a
geological report in compliance with the Canadian Securities
Administrators' National Instrument 51-101 Standards of Disclosure
for Oil and Gas Activities (the "Report"). The Report is now
expected to be received on or about March
20, 2015. The Report will be used by the TSX-V as supporting
documentation for the proposed transaction, and it is expected that
the Report will assist investors in assessing the proposed
transaction. A further news release will be issued by the Company
when the Report is available, providing further details on the
assets proposed to be acquired under the agreements. Investors
are cautioned that, until the Report is prepared and disclosed,
there may not be sufficient information about the assets so as to
enable investors to make a reasonable investment decision about the
transaction.
The completion of the proposed acquisition is
subject to certain conditions precedent, including approval of the
assignment of rights by Brazil's
Council for Economic Defense (CADE) and the National Agency of
Petroleum, Natural Gas and Biofuels (ANP). Receipt of required
regulatory approvals and the subsequent Closing may take several
months, or may not occur at all.
PetroRio is born of a new corporate culture focused
on increasing production through the acquisition of production
assets, the re-exploration and optimization of the Polvo, Bijupirá
and Salema Fields, increasing
operational efficiency and reducing production costs and corporate
expenses, as well as eliminating exploration risk. The Company's
main objective is to create value for its shareholders, protecting
its liquidity and increasing revenue and profits, with full respect
for safety and the environment.
1 The Company's corporate name will
remain HRT Participações em Petróleo S.A., until the modification
is approved at the Shareholders' Meeting, in accordance with
proposal to be submitted by Management. The Company's shares and
GDSs will continue to be traded under the tickers HRTP3 on the
BM&FBOVESPA and HRP on TSX-V until the new corporate name is
approved and the request to change the tickers is authorized by the
BM&FBOVESPA and the Brazilian Securities and Exchange
Commission (CVM). The Company will keep its shareholders and the
market in general informed of the progress of this process.
About PetroRio
PetroRio is one of the largest independent oil and natural gas
producer in Brazil. It is operator
of Polvo field which is located in the southern portion of the
Campos Basin, Rio de Janeiro , and
holds a 60% participating interest. Polvo has Brazil's seventh largest daily production of
barrels of oil equivalent (boe), with 20.3º API, deriving from
three producing reservoirs. PetroRio is the owner, through its
subsidiaries, of "Polvo A" fixed platform and a 3.000HP drilling
rig, currently in operation in the field, being the platform
connected to the "Polvo FPSO" vessel, with capacity to segregate
hydrocarbons and water treatment, oil storage and offloading. Polvo
Field license covers an area of approximately 134km2, with several
prospects with potential for further explorations.
On January, 2015, PetroRio announced the
acquisition of 80% of the Bijupira and Salema Fields located at the same basin, Campos
Basin, at a distance of approximately 80 km from the Polvo Field,
tripling its current daily production to more than 33,000 barrels
of oil. Such acquisition is subject to the approval of Brazil's Council for Economic Defense (CADE)
and the National Agency of Petroleum, Natural Gas and Biofuels
(ANP). Furthermore, PetroRio is born of a new corporate culture
focused on increasing production through the acquisition of
production assets, the re-exploration and optimization of the
Polvo, Bijupirá and Salema Fields,
increasing operational efficiency and reducing production costs and
corporate expenses. The Company's main objective is to create value
for its shareholders, protecting its liquidity and increasing
revenue and profits, with full respect for safety and the
environment. For more information, please visit the Company's
website: www.petroriosa.com.br
Reader Advisories
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 the expected time for
completing closing of the proposed acquisition under the
Agreements, the proposed change of the Company name to PetroRio 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, as well as our ability to complete the proposed
acquisition under the Agreements: 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; labor disputes, disruptions or declines in
productivity; increases in materials or labor costs; inability to
obtain required regulatory approvals; inability to attract
sufficient labor; 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 these cautionary
statements. 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.
Sedar Profile # 00031536
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE HRT Participações em Petróleo S.A.