Petro Rio S.A. HRTPF

Production Polvo decrease 24% an year 2014

[Rzbern]

Clarifying that HRT disclosed that the production cost of the barrel was $ 55.00 / barrel considering a production of 10,000 barrels / day. With lower production costs more expensive because they are less barrels to dilute fixed costs. By keeping the proportion in December, with a production of 8,877 bbl / cost rises to US $ 61.95 / barrel, similar to published by OGPar in Hammer Shark (Tubarão Martelo oil field). In November, the cost would have been even greater, US $ 76.18 / barrel.

2014

December

[US$55 x 10,000] /8,877 = US$61.95 (cost production per barrel)

November

[US$55 x 10,000] /7,219 = US$76.18 (cost production per barrel)



Ricardo Bottas in the conference call 3Q14, as page 3 in the link below

"In 2014, HRT posted direct production cost, excluding depreciation, that basically affects amortization of goodwill on the acquisition of the Octopus field, and amortization of our provisioning for abandonment, and we include royalty costs; thus direct cost per barrel was US$55based on the average production level of 10,000 barrelsfor these three quarters."

transcription conference call 3Q14