PETRORIO – START OF PRODUCTION OF NEW WELL IN TUBARÃO MARTELO

August 18, 2020

Petro Rio S.A. (“Company” or “PetroRio”) (B3: PRIO3), in addition to the Material Fact disclosed August 3, 2020, informs its shareholders and the Market in general of the results of the the Revitalization Campaign in the Tubarão Martelo Field (“Field”).

The Revitalization Campaign consists of a workover (replacement of submersible pump) in the TBMT-2HP well and the connection of a fifth producing well (TBMT-4HP) to PetroRio’s fully owned FPSO OSX-3.

In June 2020, Dommo Energia – then operator of TBMT – announced the positive results of the workover, which increased the Field’s production levels to approximately 7,000 barrels of oil per day.

Once the workover was completed, the connection of the TBMT-4HP was carried out which resulted an initial production of approximately 3,000 barrels per day, thus increasing the Field’s production to 10.000 barrels per day, or a 40% increase from previous levels.

The revitalization of mature fields is a fundamental part of PetroRio’s strategy and plays an important role in the Company’s continued reduction of lifting costs per barrel, in the continued increase in the recovery factor of fields operated by the Company, and in the continuous increase in the economic life of its assets.

Tubarão Martelo’s tieback with Polvo Field

The Company estimates the project’s Capex will reach approximately US$ 45 million, to be disbursed during the first half of 2021. In addition, PetroRio expects to take advantage of the connection of the Polvo Field to the FPSO OSX-3, to make further investments for the connection of a sixth well – the TBMT-10H well – which the Company estimates may cost between US$ 20 million and US$ 25 million.

Finally, PetroRio thanks both Companies’ teams for the effort and work put in during this important period.

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