Material Fact - HRT signs an agreement with Maersk to acquire a 40% participating interest in the Polvo Field
RIO DE JANEIRO, July 8, 2014 /CNW/ - HRT Participações em Petróleo S.A. (the "Company" or "HRT") (BM&FBOVESPA: HRTP3, TSX-V: HRP), jointly with its wholly-owned subsidiary, HRT Oil & Gas Ltda ("HRTO&G"), announces that it has entered into a purchase and sale agreement with Maersk Energia Ltda ("Maersk") to acquire a 40% participating interest in the Polvo Field, in the Campos Basin.
The completion of the purchase and sale transaction between HRTO&G and Maersk is subject to certain conditions, including the final approval by the National Petroleum, Natural Gas and Biofuels Agency (ANP).
HRT's plan is to extend the lifespan of this Field through the increase in production from proved undeveloped reserves.
"The acquisition of a 40% stake in the Polvo Field ratifies our confidence in the potential for production of this field. After six months operating the field, we confirm what we already knew about it in the past, and we place new perspectives in it for the development of the production. This is one more milestone in HRT's strategy of growth and sustainability", highlighted Milton Romeu Franke, Chief Executive Officer of HRT.
For additional information, please contact HRT's Investor Relations Department.
Due to a confidentiality agreement with Maersk, details of the purchase and sale agreement cannot be disclosed until the final approval by ANP. Once approval is granted, salient terms of the agreement and purchase price will be disclosed.
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HRT is one of the largest independent oil and gas Exploration & Production companies in Brazil. Through its subsidiaries, HRT holds a 60% participating interest and it is also the operator of the Polvo Field, which is located in the southern portion of the Campos Basin, 100 km east of the city of Cabo Frio, Rio de Janeiro. Polvo Field has the seventh largest daily production of barrels of oil equivalent (boe), with 20.3º API, deriving from three producing reservoirs. HRT 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 134 km2, with several prospects with potential for further explorations. Additionally, HRT holds a 55% interest and it is the operator in 19 exploratory blocks in the Solimões Basin, and also operates ten exploratory blocks off the Namibian coast in the Orange and Walvis sub-basins. HRT is committed to minimizing any possible environmental impacts on 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.
SOURCE HRT Participações em Petróleo S.A.For further information:
Eduardo Larangeira Jácome - Organizational Management and Investor Relations Officer
Sandra Calcado - Investor Relations Manager
Tainah Costa - Investor Relations Senior Analyst
+55 21 2105-9700