RIO DE JANEIRO, Jan. 2, 2017 /CNW/ - PetroRio, ("Company" or "PetroRio") (BM&FBOVESPA: PRIO3, TSX-V: PRJ), hereby informs the execution of a Share Purchase Agreement aiming to acquire an additional direct interest of approximately 29.21% held by Fundo Brascan de Petrleo, Gs e Energia – Fundo de Investimento em Participaes ("FIP Brascan") in Brasoil do Brasil Explorao Petrolfera S.A. ("Brasoil").
The conclusion of this transaction in connection with the acquisition of the indirect participation held by Goldman Sachs & Co. ("GS"), which was announced on December 21st, 2016, will give to PetroRio a total participation in Brasoil of 52.40%.
Brasoil is a holding company, with indirect stake of 10% over the rights and obligations of the Manati Field concession contract, that, in turn, currently produces 4.1 million cubic meters of natural gas per day (approximately 26 thousand barrels of oil equivalent per day), ranking as the 8th largest producing field of natural gas in Brazil (*).
Additionally to the stake in the Manati Field, other relevant assets from Brasoil include the indirect stake of 100% in the concessions of the Pirapema Field – gas asset currently in development – and of Block FZA-M-254, both in the mouth of the Amazon River.
The closing of the sale and purchase transaction between PetroRio and FIP Brascan is subject to certain conditions precedent, among which, the approval by the investment committee of FIP Brascan and the period for exercise of the right of first offer and tag along by the remaining investors of Brasoil, additional to the analysis of the transaction by the competent regulatory bodies, as deemed necessary.
The execution of this agreement is aligned with the Company's business model and acquisition growth strategy and it represents a diversification of its portfolio of revenue generating assets.
(*) As per the October, 2016 Oil and Natural Gas Production Buletin (Boletim da Produo de Petrleo e Gs Natural) of the Brazilian Oil and Natural Gas Agency (Agncia Nacional do Petrleo, Gs Naturals e Biocombustveis – ANP).
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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.