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HRT announces that TNK-BP signs farm-out agreement with Brazilian Petra Energia

^{Published on 2011-07-18 16:25:46 - Market Wire}
 

RIO DE JANEIRO, Brazil, July 18, 2011 /CNW/ - HRT Participações em Petróleo S.A. (the "Company" or "HRT") (BM&FBOVESPA: HRTP3, TSX-V: HRP), pursuant to CVM Instruction N. 358/2002, announces it was informed today by TNK-BP about the publication of the enclosed press release:

"TNK-BP signs farm-out agreement with Brazilian Petra Energia

Moscow, 18 July, 2011 - TNK-BP has signed a farm-out agreement with Petra Energia for the acquisition of a 45% stake in 21 blocks in the Brazilian Solimoes Basin.

The 21 oil and gas exploration blocks, majority owned and operated by HRT O&G, covering an area of approximately 48,000 km², are located in the Amazon's Solimoes basin. According to a Degolyer & MacNaughton reserves audit report, the blocks bring today for the company a net prospective and contingent resource of 783 Million barrels of oil equivalent (BOEs). These include 11 discoveries, where oil and gas were tested. Initial production from the fields in the Solimoes basin is expected in 2012.

According to the signed farm-out agreement, the value of the transaction will depend on the future performance of the asset. HRT will remain the operator of the Solimoes project, with TNK-BP playing a more active role during the development and production stages.

The closing of the transaction will be subject to final agreement between TNK-BP and HRT concerning operations, approval from TNK-BP and HRT boards of directors, as well as approval from Brazilian federal regulators.

"We are pleased to have successfully completed negotiations with Petra Energia regarding a farm-out agreement for the Solimoes concession in Brazil," said Michael Fridman, executive chairman of the board of TNK-BP.  "Negotiations on this project are still ongoing and a number of additional agreements have to be negotiated with the Solimoes operator and majority partner, HRT. Management hopes to have these agreements finalized before the end of August and submit the entire investment for Board approval by September.'"

The prospective resources estimates described in the report are "undiscovered resources" as defined in the Canadian Oil and Gas Evaluation ("COGE") Handbook. Undiscovered resources are defined as those quantities of oil and gas estimates on a given date to be contained in accumulations yet to be discovered. The estimate of the potentially recoverable portions of undiscovered resources are classified as prospective resources. Prospective resources are defined as those quantities of oil and gas estimated on a given date to be potentially recoverable from undiscovered accumulations. There is no certainty that any portion of these resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources.

The term "BOE" as used herein may be misleading, particularly if used in isolation. A BOE conversion ratio of approximately 6 Mcf:1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

For further information, contact HRT's Investor Relations Department.

About HRT
HRT Participações holds one of the largest independent oil and gas exploration and production companies in Brazil. The HRT Group comprises eight main subsidiaries: IPEX (Integrated Petroleum Expertise Company Serviços em Petróleo Ltda.), HRT O&G Exploração e Produção de Petróleo Ltda., HRT Netherlands B.V., HRT África Petróleo S.A., HRT América Inc., BN47 Serviços Aéreos Ltda., Ranger Participações Ltda. and UNX Energy Corp. The Company retains a 55% interest in 21 exploratory blocks in the Solimões Basin. HRT also operates ten exploratory blocks at the Namibian coast, where it retains interest in two of them, in the Walvis Sub-basin, and in other eight, in the Orange Sub-basin. HRT's team includes PHDs and masters in geochemistry, geophysics, biology and engineering, most of them former employees of Petrobras and ANP (Brazil petroleum agency). HRT is committed to minimizing any possible environmental impacts in the sites where it acts. Our commitment with the local communities is towards health conditions, security and quality of life. For more information, please visit the Company's website: [ www.hrt.com.br/ir ]

Disclaimer
This news release contains forward-looking statements. All statements other than statements of historical fact contained in this news release are forwardlooking statements, including, without limitation, statements regarding our drilling and seismic plans, operating costs, acquisition of equipment, expectations of finding oil, the quality of oil we expect to produce and our other plans and objectives. Readers can identify many of these statements by looking for words such as "expects", "believe", "hope" and "will" and similar words or the negative thereof. Although management believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. By their nature, forward-looking statements require us to make assumptions and, accordingly, forward looking statements are subject to inherent risks and uncertainties. We caution readers of this news release not to place undue reliance on our forward-looking statements because a number of factors may cause actual future circumstances, results, conditions, actions or events to differ materially from the plans, expectations, estimates or intentions expressed in the forward-looking statements and the assumptions underlying the forward-looking statements.

The following risk factors could affect our operations: the contingent resource and prospective resource evaluation reports involving a significant degree of uncertainty and being based on projections that may not prove to be accurate; inherent risks to the exploration and production of oil and natural gas; limited operating history as an oil and natural gas exploration and production company; drilling and other operational hazards; breakdown or failure of equipment or processes; contractor or operator errors; non-performance by third party contractors; labour disputes, disruptions or declines in productivity; increases in materials or labour costs; inability to attract sufficient labour; requirements for significant capital investment and maintenance expenses which HRT may not be able to finance; cost overruns and delays; exposure to fluctuations in currency and commodity prices; political and economic conditions in Namibia and Brazil; complex laws that can affect the cost, manner or feasibility of doing business; environmental, safety and health regulation which may become stricter in the future and lead to an increase in liabilities and capital expenditures, including indemnity and penalties for environmental damage; early termination, non-renewal and other similar provisions in concession contracts; and competition. We caution that this list of factors is not exhaustive and that, when relying on forward-looking statements to make decisions, investors and others should also carefully consider other uncertainties and potential events. The forward-looking statements herein are made based on the assumption that our plans and operations will not be affected by such risks, but that, if our plans and operations are affected by such risks, the forward-looking statements may become inaccurate.

The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement. The forward-looking statements included in this news release are made as of the date of this news release. Except as required by applicable securities laws, we do not undertake to update such forward-looking statements.

Sedar Profile # 00031536

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Press release

TNK-BP signs farm-out agreement with Brazilian Petra Energia

Moscow, 18 July, 2011 - TNK-BP has signed a farm-out agreement with Petra Energia for the acquisition of a 45% stake in 21 blocks in the Brazilian Solimoes Basin. The 21 oil and gas exploration blocks, majority owned and operated by HRT O&G, covering an area of approximately 48,000 km2, are located in the Amazon's Solimoes basin. According to a Degolyer & MacNaughton reserves audit report, the blocks bring today for the company a net prospective and contingent resource of 783 Million barrels of oil equivalent (BOEs). These include 11 discoveries, where oil and gas were tested. Initial production from the fields in the Solimoes basin is expected in 2012.

According to the signed farm-out agreement, the value of the transaction will depend on the future performance of the asset. HRT will remain the operator of the Solimoes project, with TNK-BP playing a more active role during the development and production stages.

The closing of the transaction will be subject to final agreement between TNK-BP and HRT concerning operations, approval from TNK-BP and HRT boards of directors, as well as approval from Brazilian federal regulators.

"We are pleased to have successfully completed negotiations with Petra Energia regarding a farm-out agreement for the Solimoes concession in Brazil," said Michael Fridman, executive chairman of the board of TNK-BP.  "Negotiations on this project are still ongoing and a number of additional agreements have to be negotiated with the Solimoes operator and majority partner, HRT. Management hopes to have these agreements finalized before the end of August and submit the entire investment for Board approval by September."

Notes to editors:

TNK-BP is Russia's third largest oil company, 50% held by BP and 50% held by the AAR Consortium (Alfa Group, Access Industries, and Renova). TNK-BP also owns close to 50% of another Russian oil and gas company, Slavneft. TNK-BP accounts for approximately 16% of Russia's production (including its share of Slavneft). SEC proved reserves (life of field basis) were 8.794 billion boe as of December 31, 2010.

References to "TNK-BP" or "the Group" mean "TNK-BP International and the company's consolidated subsidiaries" unless the context requires otherwise.

For further information please contact:

Public Affairs Division: Tel. (495) 363-27-57

[ media@tnk-bp.com ]

[ www.tnk-bp.com ]