RIO DE JANEIRO, May 18, 2015 /CNW/ - PetroRio1, the
new brand of HRT Participações em Petróleo S.A. ("PetroRio" or the
"Company") (BM&FBOVESPA: HRTP3, TSX-V: HRP), hereby announces
that one of its subsidiaries and one of Rosneft Oil Company's
subsidiaries ("Rosneft Brasil"), have signed definitive agreements
for the sale and assignment of all its remaining interest in the
rights and obligations in the Concession Contracts of Oil and Gas
located in the Solimões Sedimentary Basin, in the State of
Amazonas, Brazil. With this
transaction, PetroRio completes negotiations started in 2014 for
its divestment from the Solimões project and Rosneft Brazil will
become the holder of 100% of both Concession Contracts.
The divestiture of the Solimões operations is entirely adherent
to the PetroRio's new strategy, initiated last year. The Company´s
focus is now driven to production increase through oil fields
already in production, re-exploration, growth of operational
efficiency, reduction in production costs and corporate
expenses.
The aggregate consideration for the transaction will be
US$55 million. The completion of the
transaction is subject to the final approval by ANP and it no
longer encompasses the sale of four heli-transportable drilling
rigs.
The elimination of the exploration risk is a key factor for the
consolidation of the Company´s strategy and, in this regard, the
sale of Solimões operations has become imperative, demonstrating
the commitment of PetroRio in achieving its main objectives,
namely, the value creation for its shareholders and the protection
of the Company´s liquidity, increase of revenues and profit,
strengthening its position as one of the most important emerging
companies in the scenario of the oil industry in Brazil.
For more information, please contact HRT's Investor Relations
Department.
1 Company's corporate name approved in the Special
Shareholders' Meeting held on May 15,
2015., subject to registration and approval in the competent
bodies. 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.