Petro Rio S.A. (“Company” or “PetroRio”), following best corporate governance practices, informs its shareholders and the market in general about the drilling in the Polvo Field’s (“Polvo”) Eocene reservoir, which resulted in a well (“POL-K”) with initial production of 2,500 barrels of oil per day, still in the assessment period.
This highly satisfying result, following the POL-L drilling in 2020, confirms the potential of the Eocene reservoir, the volume of which is already accounted for in the latest reserves certification report. The well’s estimated recoverable production of approximately 4 million barrels of oil will be reclassified from Proved Undeveloped Reserves to Proved Developed Producing Reserves.
The increase in production takes the Polvo Field’s production to a 12,000 barrels per day level and contributes to a reduced lifting cost. This incremental production will also benefit from the lower royalty rate of 5%, approved by ANP in early 2020.
The well’s CAPEX was approximately US$ 11 million, and the well’s estimated payback period is under 3 months.