STRATEGIC DIVESTMENT PROGRAM
Rio de Janeiro, July 22nd, 2013 - 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 1st, 2013, announces the following initiatives:
- The signing of an updated contract, on July 19th 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 7th, 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 Solimões Basin.
- And agreed-upon total transaction price between US$26 million and US$40 million depending on meeting certain contractual terms.
- The Company has granted the Buyer with the right of first refusal on the sale of aircraft in the remaining fleet of 8 helicopters and on additional aerial services work that the Company may require.
- Both companies expect to complete the sale in the third quarter.
Additionally, the Company is continuing with its plan to sell its remaining fleet of 8 helicopters and is currently in ongoing negotiations with other potential buyers. The market value of these helicopters is approximately US$ 30 million.
- The commencement of discussions with leading companies to evaluate the sale of HRT's world class geochemistry services provider IPEXco.
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 million.
"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.
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For additional information, please contact HRT's Investor Relations Department.