PetroRio plans drilling campaign in Frade

 

PetroRio plans to begin its first drilling campaign in the Frade field in the first quarter of 2020. According to financial director Blener Mayhew, the Brazilian company is studying ways to accelerate exploratory work on assets.

“There is interest from drilling companies to finance the operation. It would be an interesting situation that could unlock Frade sooner than expected, “the executive revealed, during a conference with analysts last Thursday (3/3)

In 2019, PetroRio will commit more efforts and resources in the Polvo field, initiating exploratory campaigns in the prospects of Copacabana, Leblon, Ipanema and Piratininga. The expectation is for an initial flow of 2,000 bopd in each one, with estimated total cost between US $ 30 million and $ 60 million. Drilling in the areas should start in April.

Mayhew stressed that the oil company intends to reach the mark of 100 thousand bopd by the expansion of its portfolio. “We have acquisitions history, we are one of the leaders in this oil and gas and value generation market. We did this in Polvo, we hope to repeat in Frade. We seek to acquire assets and invest in them, “said the director.

PetroRio’s production is currently around 30,000 bopd, a volume reached after the acquisition of 70% of the Frade field, announced in February, for $ 400 million. It is expected to complete the operation in the second quarter of this year.

The company’s appetite to expand the portfolio and increase its output will be strengthened by the $ 400 million issuance of debt securities in Norway that the company plans to raise, as announced this week. Road shows will be promoted with investors to address the issue.

“We have ongoing talks with Norwegian banks. Part of this amount will be for the operations in Polvo and Frade and another for new acquisitions, “confirmed Mayhew.

Financial results

PetroRio posted net income of R $ 204.9 million in 2018, up 300% compared to the previous year. In the same period, net revenue grew 59%, totaling R $ 848.9 million.

Adjusted EBITDA was R $ 278.8 million, 209% higher than in 2017. In addition, the company’s total 2P reserves increased from 12.9 million boe in 2017 to 83.6 million boe in the year. last year.

Source: BE Petroleum

 

 

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