HRT concludes drillstem test of well 1-HRT-9-AM, in the Solimões Basin
RIO DE JANEIRO, Sept. 12, 2012 /CNW/ - HRT Participações em Petróleo S.A. (the "Company" or "HRT") (BM&FBOVESPA: HRTP3, TSX-V: HRP) announces that its subsidiary HRT O&G Exploração e Produção de Petróleo Ltda. ("HRT O&G") has concluded the drillstem test in well 1-HRT-9-AM, block SOL-T-191, in the Solimões Basin.
The test, carried out in the Juruá Formation reservoir, with a net-pay of 36.4 meters, was successfully concluded on September 7. An interval from 2,769.6 to 2,794.4 meters was opened for testing and showed excellent flow characteristics through a vertical well, reaching a stable production rate of 510 thousand cubic meters (18.01 million cubic feet) of natural gas per day, with a choke of 32/64" and a well head upstream pressure of 3,050 psi. A choke of 40/64" was attempted and resulted in a production rate of over 700 thousand cubic meters (24.72 million cubic feet) of natural gas per day; however, this level exceeded the operational well tester capacity and after 10 minutes the choke was changed out for 32/64" for the duration of the test. The calculated AOF for this test was 7 million cubic meters (247.21 million cubic feet) of natural gas per day.
The tested prospect, located southwestern of the Juruá Field, is part of a geological structure covering an area of around 56 km2, and which is estimated to hold between 10 and 32 billion cubic meters (0.35 to 1.13 Tcf) of recoverable gas.
"This is one of the best gas wells ever drilled and tested onshore Brazil, considering the thickness and quality of the reservoir as well as the DST flow results. It not only confirms the gas trend to the south and east of the Juruá Field, showing integration with the natural gas findings of wells 1-HRT-5-AM, 1-HRT-8-AM and 1-HRT-2-AM, but it opens a new exploration frontier to the southwest. HRT believes that this structure has a potential flow rate of up to 3.0 million cubic meters (105 million cubic feet) of natural gas per day, when it reaches its development phase. This discovery plays a key role in the assessment of the gas potential of the Solimões Basin", mentioned Milton Franke, Chief Executive Officer of HRT O&G.
"This result demonstrates that the Solimões Basin holds one of the largest potentials for gas among Brazilian basins and will allow to accelerate the gas monetization plan in the area", said Marcio Rocha Mello, CEO of HRT and Chairman of the Board.
The well 1-HRT-9-AM, jointly with previous discoveries made in this sub-region of the Basin, will be part of an evaluation plan to be submitted to ANP in due course.
HRT is the operator of 21 blocks in the Solimões Basin, which it is exploring in co-operation with TNK-Brasil, a subsidiary of TNK-BP, a Russian joint venture between BP and the consortium AAR.
For further information, please contact HRT`s Investor Relations Department.
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HRT Participações holds one of the largest independent oil and gas exploration and production companies in Brazil. The HRT Group comprises eight 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., Air Amazonia Serviços Aéreos Ltda. and HRT Canada Inc.. The Company retains a 55% interest in 21 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
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.
Readers are cautioned that the test result is not necessarily indicative of long-term performance or ultimate recovery.
SOURCE: HRT Participações em Petróleo S.A.For further information:
Carlos Tersandro Fonseca Adeodato - CFO and Investor Relations Officer
+55 21 2105-9700
Fábio Bueno - IR Manager
+55 21 2105-9745