RELEVANT FACT - HRT Signs Farm-Out With Galp Energia for Namibian Blocks
RIO DE JANEIRO, Nov. 26, 2012 /CNW/ - HRT PARTICIPAÇÕES EM PETROLEO S.A.
(the "Company" or "HRT") (BM&FBOVESPA: HRTP3, TSX-V: HRP) announces the
signature of a Farm-Out Agreement with the company Galp Energia in regard to
the assignment of a 14% participating interest in exploratory rights over
three (3) offshore Petroleum Exploration Licences (PEL) in Namibia -
specifically PEL 23 in the Walvis Basin and PELs 24 and 28 in the Orange
Basin. HRT will retain the operatorship of these PELs and is set to commence a
drilling campaign in 1Q13.
According to the terms agreed to by the parties, Galp Energia will carry part
of HRT's share of costs, limited by a cap, associated with the drilling of
wildcat wells, which are set to be drilled in 2013. The exploration program is
expected to comprise the drilling of three exploration wells, in already
identified and defined prospects, targeting two prospects in PEL 23 and one in
PEL 24. These prospects carry both oil and gas assessments with material
volumes, and are expected to be more oil prone.
The three PELs cover an area of 37,744 km(2) in water depths ranging from 180
meters to 2,500 meters. Both Walvis and Orange basins are located in a new
exploratory frontier area in an emerging hydrocarbon province with potential
for oil and natural gas discoveries with already identified, drill-ready
It is important to highlight that HRT has carried out the largest 3D seismic
acquisition campaign with excellent quality off the Namibian coast, which
covered the areas where the three wells will be drilled, decreasing,
therefore, the exploration risk.
The main targets of these prospects have a combined estimated gross
recoverable resource of almost 8 billion bbl (unrisked mean estimate) with POS
(probability of success) in the 20% - 30% range.
"We are honored to haveGalpEnergia as a partner in these highly
prospective assets. This partnership will enable HRT to bring into its
drilling campaignthe experience of a major company that has had outstanding
performance in the search for hydrocarbons in frontier-exploration projects
such as the Brazilian pre-salt and also the West-African deep-waters", CEO
Marcio Rocha Mello commented.
The transaction is subject to the requisite regulatory approvals, specifically
the Namibian government approval.
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
For further information regarding such prospective resources please refer to
HRT's Statement of Reserves Data and Other Oil and Gas Information for fiscal
year ended December 31, 2011 (Form NI 51-101F1) dated March 26, 2012 and filed
under the Company's profile on SEDAR at www.sedar.com. The prospective
resources estimates described therein and in this release are "undiscovered
resources" as defined in the Canadian Oil and Gas Evaluation Handbook. There
is no certainty that any portion of these resources will be discovered. If
discovered, there is no certainty that it will be commercially viable to
produce any portion of the resources. Undiscovered resources are defined as
those quantities of oil and gas estimates on a given date to be contained in
accumulations yet to be discovered. The estimate of the potentially
recoverable portions of undiscovered resources are classified as prospective
resources. Prospective resources are defined as those quantities of oil and
gas estimated on a given date to be potentially recoverable from undiscovered
accumulations by application of future development projects.
The above prospective resource estimate is presented in barrel of oil
equivalents ("BOE's"). BOE's may be misleading, particularly if used in
isolation. A BOE conversion ratio of 6 Mcf: 1 bbl is based on an energy
equivalency conversion method primarily applicable at the burner tip and does
not represent a value equivalency at the wellhead."
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.
Carlos Tersandro Fonseca Adeodato - CFO and Investor Relations Officer +55 21
SOURCE: HRT Participações em Petróleo S.A.
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-0- Nov/27/2012 04:10 GMT
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