RIO DE JANEIRO,
Jan. 2, 2017 /CNW/
- PetroRio, ("Company" or "PetroRio") (BM&FBOVESPA: PRIO3,
TSX-V: PRJ), hereby informs the execution of a Share Purchase
Agreement aiming to acquire an additional direct interest of
approximately 29.21% held by Fundo Brascan de Petróleo, Gás e
Energia – Fundo de Investimento em Participações ("FIP Brascan") in
Brasoil do Brasil Exploração Petrolífera S.A.
("Brasoil").
The conclusion of this transaction in connection with the
acquisition of the indirect participation held by Goldman Sachs
& Co. ("GS"), which was announced on December 21st, 2016, will give to
PetroRio a total participation in Brasoil of 52.40%.
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 FIP Brascan is subject to certain conditions
precedent, among which, the approval by the investment committee of
FIP Brascan and 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
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.
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