PRESS RELEASE FROM CNW GROUP
MATERIAL FACT - PetroRio Terminates Operations In Namibia
Wednesday, March 09, 2016
MATERIAL FACT - PetroRio terminates operations in Namibia
17:58 EST Wednesday, March 09, 2016
RIO DE JANEIRO, March 9, 2016 /CNW/ - Petro Rio S.A. ("PetroRio" or the "Company") (BM&FBOVESPA: PRIO3, TSX-V: PRJ) hereby announces that it will not execute any new investments and it is terminating its exploratory activities in Namibia.
PetroRio, after a long period of conversations with the Namibian government, chose not to proceed with its oil exploration licenses in Namibia and, therefore, it will not execute any new investments in that country. This decision is in line with the Company's growth strategy through the acquisition of producing fields and reducing exposure to exploratory risk.
PetroRio, one of the most important emerging companies in the Brazilian oil and gas industry, is focusing in the development of a solid growth platform aiming at generating value for its shareholders.
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About PetroRio
PetroRio is one of the largest independent companies in the oil and gas production in Brazil. It is the operator of the Polvo Field, located in the Campos Basin, which has Brazil's seventh largest daily production of barrels of oil equivalent (boe). PetroRio is the owner of "Polvo A" fixed platform and a 3.000HP drilling rig, currently in operation in this Field, being the platform connected to the "Polvo FPSO" vessel, with capacity to segregate hydrocarbons and water treatment, oil storage and offloading. Polvo Field license covers an area of approximately 134km2, with several prospects with potential for further explorations.
The Company´s corporate culture seeks to increase production through the acquisition of new production assets, the re-exploration of assets, increased operational efficiency and reduction of production costs and corporate expenses. PetroRio's main objective is to create value for its shareholders with growing financial discipline and preserving its liquidity, with full respect for safety and the environment. For further information, please visit the Company's website: www.petroriosa.com.br.