Material Fact - Clarification on CVM/BOVESPA Consultation
Official Letter BM&FBOVESPA GEA-1/N°504/2013
RIO DE JANEIRO, Sept. 12, 2013 /CNW/ - HRT Participações em Petróleo S.A. (the "Company" or "HRT") (BM&FBOVESPA: HRTP3, TSX-V: HRP) hereby presents clarifications, as requested by BM&FBOVESPA on the referred Official Letter, received on September 10(th), regarding the Material Fact released on September 9th. For a better understanding, the transcript of Official Letter is presented below:
RESULTS OF THE MOOSEHEAD-1 WELL OFFSHORE NAMIBIA
Rio de Janeiro, September 9(th), 2013 - HRT Participações em Petróleo S.A. (the "Company" or "HRT") (BM&FBOVESPA: HRTP3, TSX-V: HRP) announces that the Moosehead-1 well (2713/16-1) ("Moosehead-1"), the third offshore well in our exploratory drilling campaign, is a dry hole. This well targeted the Moosehead Prospect, located in Petroleum Exploration License 24 ("PEL-24"), in the Orange Basin, offshore the Republic of Namibia.
The main objective of the Moosehead-1 well was to test the resource potential of Barremian-aged carbonate reservoirs, expected to be equivalent to the Brazil and Angola "pre-salt" reservoirs, within a 546 km(2) 4-way dip closure, mapped on 3D seismic. Extensive formation evaluation was performed to confirm the nature and quality of the carbonate reservoir and source rock intervals, including wireline logs and sidewall core samples.
The Moosehead-1 well encountered approximately 100m of carbonates at the primary target. The nature of the reservoir, though further analysis of data collected will be necessary, appears similar to the "pre-salt" reservoirs as predicted. However, porosity was less developed than expected in this location, and is being considered a dry-hole. Wet gas shows were encountered in the section that increased in wetness with depth. At least two potential source rocks were penetrated, including the well-developed Aptian-age source rock. Indications of source rocks in the deeper rift section were also apparent, though not penetrated. Further analysis of the well sampling will greatly help with continuing exploration on the HRT blocks in Namibia.
The Moosehead-1 well was located in 1,716m of water depth and was drilled to 4,170m of measured total depth. The well was drilled, wireline logged and P&A, in a total of 47 days, by the Transocean Marianas (NYSE:RIG) semi-submersible rig. Operational and safety performance was excellent. This completes HRT's Namibian drilling campaign and the Transocean Marianas is available for sublease.
HRT is the operator of 10 blocks offshore Namibia, which are contained in 4 Petroleum Licenses. GALP Energia (NYSE Euronext Lisbon: GALP), with 14% participating interest, is HRT's partner to drill the first 3 wells of the current exploration campaign.
"The Moosehead well concludes HRT's first drilling campaign in Namibia with very important geological information even though no pay zones were found in this well. The time has come for a thorough analysis of our three well results and assets in Namibia to develop new plans for 2014 and 2015. We conclude this campaign with the understanding that both the Orange and Walvis basins, tested with drilling, are oil and gas prone basins, new exploration efforts will bring commercial hydrocarbon discoveries and that HRT will be part of the future of Namibian exploration", highlighted Milton Franke, the CEO of HRT.
For additional information, please contact HRT's Investor Relations Department.
Rio de Janeiro, September 10, 2013.
Mr. Ricardo Bottas Dourado dos Santos Investor Relations Officer of HRT Participações em Petróleo S.A. Avenida Atlântica, n.º 1130, 10º andar - Copacabana CEP 22021-000 - Rio de Janeiro - RJ Phone: (21) 2105-9700 / Fax: (21) 2105-9713 E-mail: firstname.lastname@example.org c/c: email@example.com
Subject: Addendum to Material Fact
Reference is made to the Material Fact disclosed on 09.09.2013, at 08:48 p.m. via the IPE System, under the title "Results of the Moosehead-1 Well Offshore Namibia".
In this regard, in light of the exploratory, operational and financial results of the Company, associated with the statements of the CEO, Mr. Milton Franke, especially:
"We conclude this campaign with the understanding that both the Orange and Walvis basins, tested with drilling, are oil and gas prone basins, new exploration efforts will bring commercial hydrocarbon discoveries and that HRT will be part of the future of Namibian exploration",
Based on the jurisdiction set forth in paragraph 6, article 3 of the CVM Instruction No. 358/2002, we hereby require the amendment of the referred Material Fact, which should be complemented with the following information:
i. Description of the steps to be taken by the Executive Board, due to the termination of the current exploratory campaign in Namibia; ii. Financing sources for new exploratory efforts, given the current financial and equity conditions of the company; iii. Reasons why the CEO of HRT assures that new exploration efforts will bring commercial hydrocarbon discoveries;
Lastly, we would like to point out that the amended Material Fact must include copy of this Official Letter and must be resubmitted via the IPE System, category "Material Fact", type "Resubmission due to Request".
We further clarify that it will be incumbent upon the Superintendence of Corporate Relations, exercising the powers vested in it by Law, and based on item II, article 9 of Law 6,385/1976, and article 7, combined with article 9 of CVM Instruction 452/2007, to determine the application of a coercive fine, in the amount of R$ 1.000,00 (one thousand Brazilian reais), without prejudice to other administrative sanctions, due to non-compliance with the requests comprised in this official letter, within 24 (twenty-four) hours as from the receipt of this letter, which was also sent by facsimile and email.
Nilza Maria Silva de Oliveira Company Follow-Up Manager-1
Fernando Soares Vieira Corporate Relations Superintendent
Pursuant to the Official Letter GEA-1/N°504/2013 ("Letter") as of September 10(th), 2013, in which the Company has been asked to present clarifications about the Material Fact released on September 9(th), we hereby inform:
Steps that will be taken by the Executive Board, due to the termination of the current exploratory campaign in Namibia:
-- The Company has been working on the review of the Business Plan, in which the activities to be developed in the Namibian assets in the next 2 years will be defined; -- As per the Minutes of the Board of Directors' meeting held on September 9 and 10, 2013, on its item (a.1): […] "The Board of Directors discussed the strategies and plans to enhance the Company's cash position. The Board of Directors provided the executive board with the guidelines to develop an updated business plan with a view to reflecting significant cost reduction, so that it can assure financial stability throughout 2014" -- HRT will process all geological and geochemical data sampled with the drilling of the three exploration wells (Wingat-1, Murombe-1 and Moosehead-1) and will calibrate their seismic interpretations and petroleum system modelings aiming to reassess the current prospects and identify new potential prospects. Based on these new studies, the Company will search for new partnerships aiming to carry out future exploratory campaigns in these basins. Financing sources for new exploratory efforts, given the current financial and equity conditions of the company: -- New exploratory efforts have to be funded through new strategic partnerships. Two farm-downs (Namibia and Solimões) are under negotiations with a view to raising funds and sharing the risk. As disclosed on the Material Fact as of September 4(th), 2013 ("Updates on the Strategic Divestment Program"), the Company announced that: (i) concluded the sale of its air logistics business (Air Amazonia, with a fleet of six helicopters), having received US$ 23 million, which may reach up to US$ 40 million; (ii) performed the sale of an airplane, having received US$ 1.8 million, and (iii) it is performing the disposal of other assets (eight helicopters, three airplanes, four heli-transportable drilling rigs), with an estimated value of around US$ 80 million, as well as the disposal of its laboratory (IPEXco), all none-core assets for E&P activities; -- The activities to be developed in a short-term will be related to the studies, such as the evaluation of drilled-well results and reprocessing of already-acquired seismic data, not including new drillings. In this way, these investments will be associated with own Company's personnel costs and specialized consultancies. Reasons why the CEO of HRT assures that new exploration efforts will bring commercial hydrocarbon discoveries: -- The sentence quoted by the CEO of HRT refers to the exploratory efforts to be conducted and commercial hydrocarbon discoveries to be identified by companies that also hold assets in Namibia and it reflects only positive expectations under the geological point of view. This is because, through the execution of 3D seismic surveys in 2012, and the drilling of three exploration wells in 2013, it was possible to identify source rocks, and in the first well drilled by the Company, Wingat-1, high-quality oil samples, however with no commercial volume; -- As an example of these expectations, new drillings to be performed in 2014 were announced by companies that also hold exploration rights in Namibia, and whose results, in case they are positive, may add value to HRT's assets. 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. About HRT 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. 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 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; 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.
Ricardo Bottas Dourado - CFO and Investor Relations Officer Sandra Calcado - Investor Relations Manager Tainah Costa - Investor Relations Senior Analyst
+55 21 2105-9700 firstname.lastname@example.org
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CO: HRT Participações em Petróleo S.A. NI: OIL FIELD
-0- Sep/12/2013 13:56 GMT