PetroRio: acquisition of additional interest in Frade field

Once concluded, PetroRio’s will increase its working interest in the concession from 18.26% to 70% and become the field’s operator. With the transaction, PetroRio's combined production at Frade will reach 15 000 boe/d and contribute to a significant increase in the Company's total production, reaching approximately 28 000 boe/d. In addition, Company 2P reserves are expected to reach 83.6 million bbls.

The transaction also includes a 50% operated interest in the deepwater CE-M715 Block (Ceara Basin). The conclusion of the acquisition is subject to certain conditions precedent as well as internal and external approvals.

The transaction is accretive to cash flow and will result in PetroRio becoming the largest independent oil & gas player in Brazil. The agreement also reaffirms PetroRio’s strategy of growth through acquisitions of producing assets and represents a diversification of its portfolio of revenue generating assets.

The commercial conditions of the transaction are subject to confidentiality and shall be duly disclosed to the market through the relevant channels. Scotiabank acted as PetroRio’s financial advisor and Mattos Filho Advogados as external legal counsel on this transaction.

Read the article online at: https://www.oilfieldtechnology.com/offshore-and-subsea/31012019/petrorio-acquisition-of-additional-interest-in-frade-field/