RIO DE JANEIRO, July 22, 2013 /CNW/ - HRT Participações em Petróleo S.A.
(the "Company" or "HRT") (BM&FBOVESPA: HRTP3, TSX-V: HRP), following the
creation of a Special Committee to promptly evaluate inorganic development
options for HRT, as previously disclosed on July 1(st), 2013, announces the
-- The signing of an updated contract, on July 19(th) 2013, with
Erickson Air-Crane Inc. (the "Buyer") for the sale of HRT's air
logistics business, Air Amazonia, reflecting a reduced work
program for the Solimões. This event replaces the binding Term
Sheet announced on March 7(th), 2013.
The updated contract reflects the revised work program for the Solimões,
provides certain advantages to improve HRT financial risk management and
increases operational flexibility as compared to the earlier structure. The
new terms include a reduction of the number of aircraft sold exclusively to
the Buyer and a one-year initial term with annual renewal options and
structured incentives over an additional four years.
Key components of the new agreement include:
-- The sale of 6 helicopters.
-- An aerial services agreement with an initial one-year term and
four one-year options to support HRT's operations in the
-- An agreed-upon total transaction price between US$26 million
and US$40 million depending on meeting certain contractual
-- The Company has granted the Buyer with the right of first
refusal on the sale of aircraft in the remaining fleet of 8
helicopters and on additional aerial services work that the
Company may require.
-- Both companies expect to complete the sale in the third
Additionally, the Company is continuing with its plan to sell its remaining
fleet of 8 helicopters and is currently in ongoing negotiations with other
potential buyers. The market value of these helicopters is approximately US$
-- The commencement of discussions with leading companies to
evaluate the sale of HRT's world class geochemistry services
IPEXco is a Brazilian Company, providing integrated analytical services and
technology to support petroleum production and exploration players. IPEXco's
projects are diversified and range from molecular geochemistry of oil and gas
samples, to 3D modeling of basins. IPEXco laboratory facilities have attained
important certifications, such as ISO 9001:2008 and ISO 17025:2005.
HRT has decided to open a virtual data room to expedite access to
information on IPEXco and its business for potentially interested companies.
-- The launch of the sale of four heli-transportable drilling rigs
with the capacity to drill up to a 4,000 meters depth.
We are in preliminary negotiations with potential buyers and results should be
disclosed as soon as HRT has entered into a final agreement. The market value
for the drilling rigs ranges from, approximately, US$ 40 million to US$ 50
"This strategic process of divestment is focused on concentrating our efforts
on our exploratory activity and in the transition process and operation of the
Polvo field, as well as recover relevant financial resources to strengthen the
cash position of HRT. These are potential paths forward to maximize value for
HRT shareholders", highlighted Milton Franke, CEO of HRT.
For additional information, please contact HRT's Investor Relations Department.
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.
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
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.
Ricardo Bottas Dourado- CFO and Investor Relations Officer Sandra Calcado -
Investor Relations Manager Tainah Costa - Investor Relations Senior Analyst
+55 21 2105-9700 email@example.com
SOURCE: HRT Participações em Petróleo S.A.
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-0- Jul/22/2013 15:31 GMT
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