Bullboard - Stock Discussion Forum PETRO RIO SA V.PRJ

Energy Oil & Gas E&P

"Petro Rio SA is engaged in exploration and production of oil and gas in Brazil and abroad. The Company is currently engaged in the hydrocarbon production in Polvo field."

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PETRO RIO SA > Where Petrorio will get U$1 bi dollars (=R$ 4 bi )?

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Post by Rzbern on Oct 26, 2015 8:07pm

Where Petrorio will get U$1 bi dollars (=R$ 4 bi )?

"PetroRio go shopping to raise production", aims 100,000boe/d
www.abegas.org.br/Site/?p=51722, (in portuguese)
translated with "google translator":
"The PetroRio (former HRT) aims to achieve a production of 100,000 barrels of oil at the end of 2016 and includes acquisitions of producing fields to reach this level.
Currently, the company participates in competitions in Brazil and abroad to purchase production assets and sees the possibility of acquiring assets that cost up to $ 1 billion."

Where they will get 1 billion dollars (=R$ 4 billion brasilian reals)? They not had this value, nor in the best moment, on IPO. I Know where they get this money. Look for the clause 6 on by-laws Petrorio, as below:

6. The Company is authorized to increase the capital stock up to the limit of R$10,000,000,000.00 (ten billion Brazilian reais), excluding the shares already issued, regardless of any amendment to the Bylaws.

Paragraph 1 - For the purposes of this Article, the capital stock shall be increased upon resolution of the Board of Directors, which shall be responsible for determining the issuance conditions. In the event of subscription with full payment in assets, the competence to increase the capital shall fall upon the shareholders’ meeting, after having heard the Fiscal council’s opinion, in case it is established.

Paragraph 2 - The Board of Directors, within the authorized capital limit, may authorize the Company to issue common shares, subscription warrants and debentures convertible into shares.

Paragraph 3 - Should a subscriber fail to pay the total amount subscribed, under the conditions set forth in the subscription instrument or in the call required by management, the subscriber shall be defined as a shareholder in default by operation of law, pursuant to articles 106 and 107 of Law 6.404 of December 15, 1976, as amended ("Corporation Law"), and shall be subject to the payment of the amount in arrears, adjusted for inflation according to the variation of the price levels reflected by the General Market Price Index (ndice Geral de Preos ao Mercado) calculated and disclosed by the Getlio Vargas Foundation, or an alternate index, within the shortest frequency lawfully accepted, plus interest of 12% (twelve percent) per year, calculated pro rata temporis and the corresponding fine of 10% (ten percent) of the outstanding amount, duly adjusted, without prejudice to the adoption of the measures set forth in Article 107 of the Corporation Law.

https://ri.petroriosa.com.br/conteudo_en.asp?idioma=1&conta=44&tipo=32094