PetroRio Acquires Stake in BP Energy at Itaipu and Wahoo, Becoming the Operator of Both Pre-Salt Fields

The Acquisition of Petro Rio in the Pre-Salt Fields Is Subject to Regulatory Approvals and Other Usual Precedent Conditions, It Will Have a Fixed Portion of US$ 100 Million, to Be Divided Into 5 Payments

Petro Rio reported in a relevant fact, this morning (19/11), about the purchase of a 35.7% stake in Block BM-C-30 in Wahoo, and 60% in Block BM-C-32 in the Itaipu field, belonging to BP Energy. If approved, Petro Rio becomes the operator of both pre-salt fields. Petrobras Has Approval from Cade to Sell Its Subsidiary Liquigás, the Leader in the National Market for Liquefied Petroleum Gas (LPG) Distribution

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This transaction, subject to regulatory approvals and other usual precedent conditions, will have a fixed portion of US$ 100 million, to be divided into 5 payments (US$ 17.5 million divided between the signing and the closing of the transaction once all conditions are met; US$ 15 million in December 2021; with the remaining balance to be paid in 2022), plus an earn-out of US$ 40 million contingent on the unitization (or first oil) of Itaipu.

About Wahoo

Wahoo, with the potential to produce more than 140 million barrels (100% of the field), with oil discovery in 2008, and formation testing conducted in 2010, fits perfectly into PetroRio’s value generation strategy. With the development of the field, the Company will form another production cluster and share all infrastructure with the Frade Field (including the FPSO), thus enabling the capture of various synergies resulting in another strong and sustainable reduction of lifting costs, always maintaining the highest safety and efficiency standards.

Wahoo is located 30-35km north of Frade, with a water depth of 1,400m, and features a carbonate reservoir in the pre-salt layer at a depth of 5,000 to 7,000 meters. The oil in the field is of excellent quality, with 30º API, low viscosity, and associated gas that will be used for power generation of the Frade FPSO.

About Itaipu

Itaipu, discovered in 2009, with 3 pilot wells drilled, is located near the Parque das Baleias cluster, and preliminary studies indicate that the accumulation is potentially shared with the southeastern region of the cluster. Thus, the development of this area may undergo a unitization process before any development decisions are made.

History and Interconnection Project of Wahoo

In 2008, Anadarko (then operator of the consortium) completed the exploration, discovery, mapping, and assessment phase in Wahoo. Four pilot wells were drilled in the Wahoo reservoir, delineating it, and three of them had oil discoveries, with subsequent formation testing (TFR). At that time, an independent production system was also designed, featuring its own FPSO.

During the investment opportunity assessment process, PetroRio identified the possibility of interconnecting Wahoo with Frade and thus conceived a new development project utilizing the existing infrastructure, fully aligned with its value generation strategy.

The base interconnection project of Wahoo comprises the drilling of four production wells, two injector wells, the installation of a subsea manifold with multiphase pumps for the flow of produced oil and injected water, and the tieback between the manifold and the FPSO of Frade.

Petro Rio estimated an initial average productivity of over 10,000 barrels per day per well and production that could exceed 40,000 barrels per day in Wahoo, based on the results of the formation testing (TFR) conducted in the exploratory well.