RIO DE JANEIRO, Dec. 21, 2016 /CNW/ - PetroRio, ("Company" or
"PetroRio") (BM&FBOVESPA: PRIO3, TSX-V: PRJ), hereby informs
the execution, through one of its subsidiaries, of a Share Purchase
Agreement aiming to purchase the indirect interest equivalent to
23.19% held by Goldman Sachs & Co. ("GS") in Brasoil do Brasil
Exploração Petrolífera S.A. ("Brasoil").
Brasoil is a holding company, with indirect stake of 10% over
the rights and obligations of the Manati Field concession contract,
that, in turn, currently produces 4.1 million cubic meters of
natural gas per day (approximately 26 thousand barrels of oil
equivalent per day), ranking as the 8th largest producing field of
natural gas in Brazil
(*).
Additionally to the stake in the Manati Field, other relevant
assets from Brasoil include the indirect stake of 100% in the
concessions of the Pirapema Field – gas asset currently in
development – and of Block FZA-M-254, both in the mouth of the
Amazon River.
The closing of the sale and purchase transaction between
PetroRio and GS is subject to certain conditions precedent, among
which, the period for exercise of the right of first offer and tag
along by the remaining investors of Brasoil, additional to the
analysis of the transaction by the competent regulatory bodies, as
deemed necessary.
The execution of this agreement is aligned with the Company's
business model and acquisition growth strategy and it represents a
diversification of its portfolio of revenue generating assets.
(*) As per the October, 2016 Oil and Natural Gas Production
Buletin (Boletim da Produção de Petróleo e Gás Natural) of
the Brazilian Oil and Natural Gas Agency (Agência Nacional do
Petróleo, Gás Naturals e Biocombustíveis – ANP).
Sedar Profile # 00031536
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Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
About PetroRio
PetroRio is one of the largest independent companies in the oil
and gas production in Brazil. It
is the operator of the Polvo Field, located in the Campos Basin,
which has Brazil's seventh largest
daily production of barrels of oil equivalent (boe). PetroRio is
the owner of "Polvo A" fixed platform and a 3.000HP drilling rig,
currently in operation in this 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. The Company´s
corporate culture seeks to increase production through the
acquisition of new production assets, the re-exploration of assets,
increased operational efficiency and reduction of production costs
and corporate expenses. PetroRio's main objective is to create
value for its shareholders with growing financial discipline and
preserving its liquidity, with full respect for safety and the
environment. For further information, please visit the Company's
website: www.petroriosa.com.br.
Disclaimer
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; labor disputes, disruptions or declines in
productivity; increases in materials or labor costs; 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 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 PetroRio