Press release content from Business Wire. The AP news staff was not involved in its creation.
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Press release content from Business Wire. The AP news staff was not involved in its creation.

PetroRio Announces Material Fact: Closing of Acquisition of Interest in Frade

March 26, 2019

RIO DE JANEIRO--(BUSINESS WIRE)--Mar 26, 2019--Petro Rio S.A. (“Company” or “PetroRio”) (B3 ticker: PRIO3), in addition to the material facts disclosed to the market on January 30 and February 13, 2019, hereby informs its shareholders that, having met conditions precedent and necessary approvals granted, has on this date closed the acquisition of Chevron Brasil Upstream Frade Ltda. (“Chevron Frade”), owner of a 51.74% interest in the concession and operation of the Frade Field, along with a proportional stake in the operating assets of the Field.

From this date, the economic benefit stemming from the interest in the Frade Field will be accounted and incorporated in PetroRio’s financial statements. The Company is now also the operator of the Field, granting influence in the consortium’s decisions and allowing the implementation of cost reduction measures and synergies in its operations.

The acquisition represents the conclusion of yet another successful step in the execution of PetroRio’s growth strategy, through the acquisition and redevelopment of producing fields. With this transaction, PetroRio’s production will increase by 11 thousand barrels per day, and 43 million barrels of oil will be added to 2P reserves.

PetroRio estimates that the acquisition will allow significant opportunities for cost cutting initiatives through operational synergies in land, air and sea, and the Company will plan for the redevelopment of Frade, which can include drilling campaigns and water injections, to be determined with the help of the Geology, Reservoir and Well Engineering teams. As such, the Company expects to replicate the success in Polvo Field and extend the Field’s economic life by over 10 years.

With this acquisition, the Company also debuts its participation in the Brazilian pre-salt, with the possible exploration of prospects analogous to the discovery in the Roncador Field, at a depth of 4500 meters, which can be part of new drilling initiatives planned for 2020.

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CONTACT: PetroRio Investor Relations

IR Contacts

George Kassab


Ph:+55 21 3721-3810




SOURCE: Petro Rio S.A.

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PUB: 03/26/2019 11:09 AM/DISC: 03/26/2019 11:09 AM