RIO DE JANEIRO, Jan. 9, 2014 /CNW/ - HRT Participações em Petróleo SA (the "Company" or "HRT") (BM&FBOVESPA: HRTP3, TSX-V: HRP), together with its subsidiary, HRT O&G Exploração e Produção de Petróleo Ltda. ("HRT O&G"), reports that it was concluded on January 8th, 2014 the commercial transaction with BP Energy do Brasil Ltda ("BP") for the transfer of 60% working interest in the Polvo Field to HRT, becoming the operator. In addition, HRT acquired 100% interest in BP ENERGY AMERICA, LLC ("BPEA") which owns the fixed platform, "Polvo A" and a 3,000 HP drilling rig that operates in the field. Maersk Oil Brasil Ltda ("MAERSK") is the partner of HRT in the field, with 40% participating interest.
The Polvo Field is located in the southern portion of the Campos Basin, 100 km eastward of the city of Cabo Frio, State of Rio de Janeiro, in Brazil. The field's current daily production is approximately 12,000 barrels of oil per day through 10 producing wells that were drilled in the three different reservoirs. The area of Polvo license extends for 134 sq. km and contains several prospects for future exploration. The platform "Polvo A" is connected to the "FPSO Polvo" operated by BW Offshore ("BWO") through a contract that can be renewed up to the next 8 years. This FPSO has capacity for separation of hydrocarbons, water treatment, oil storage and offloading.
On May 6th 2013, HRT and BP signed a Purchase and Sale Agreement ("PSA") with an agreed price of US$ 135 million, with an effective date of January 1st 2013. The total field production in 2013 was approximately 4.2 million barrels of oil and the amount paid by HRT by the time of closing was $101 million after purchase price adjustments provided for in the PSA. The preliminary operating result of the field in 2013 to BP was approximately $67 million (60%). HRT will still receive its share of produced oil that was not exported and is stored in the FPSO, which totals approximately 300,000 barrels.
HRT's plans propose the drilling of the first development well in 2014, with the intent to increase the production from proved undeveloped reserves. The acquisition of Polvo Field makes HRT the fifth largest operator of oil fields in Brazil.
For additional 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 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 and 60% of interest in The Polvo Field, is located in the southern portion of the Campos 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.
SOURCE: HRT Participações em Petróleo S.A.
For further information:
Ricardo Bottas Dourado - CFO and Investor Relations Officer
Sandra Calcado - Investor Relations Manager
Tainah Costa - Investor Relations Senior Analyst
+55 21 2105-9700