3R INCREASES PROVEN RESERVES BY 35% WITH PAPA-TERRA AND FORECASTS PRODUCTION PEAK IN 2027

The Papa-Terra field, in the Campos Basin, which marked the entry of 3R Petroleum in the state of Rio de Janeiro, will increase the company’s proven (1P) reserves by around 35%, bringing them to a total 185.1 million barrels of oil equivalent. The company recently received from DeGolyer & MacNaughton the final result of the certification of the field’s reserves, which was purchased from Petrobras in July this year. According to the report, the independent oil company added 47.8 million barrels of oil equivalent to its 1P reserves with the acquisition of the asset. Thus, the Papa-Terra field becomes the most important area for the company in terms of reserves, followed closely behind by the Macau and Recôncavo clusters.

In relation to proven and probable (2P) reserves, the Papa-Terra field has 74.8 million barrels of oil equivalent, thus raising 3R’s total 2P reserves to 264.3 million barrels of oil equivalent. Of this total, according to the oil company, 70% corresponds to proven reserves (185.1 million barrels of oil equivalent). In addition to Papa-Terra, the company’s portfolio includes the assets Macau, Fazenda Belém, Pescada, Recôncavo, Rio Ventura, Peroa and Duna.

3R Offshore, a subsidiary of 3R Petroleum, will assume a 62.5% interest in the Papa-Terra field when the transaction is completed. The remaining portion will remain with Chevron. According to 3R’s projections, the field’s production – taking into account the proven reserves – could reach a peak close to 30,000 barrels of oil equivalent per day in 2027. Today, Papa-Terra operates with nine wells, six of which producers and three injectors. 3R assesses that as the systems in the field have idle capacity, this opens a gap for the company to apply its core business: the implementation of revitalization and redevelopment activities.

In the accounts of the National Petroleum Agency (ANP), the Papa-Terra recovery factor is currently around 2.5%, while the average in the Campos basin is 15.6%. This, according to 3R itself, fits the field perfectly into its investment thesis: assets in production, with potential to increase production and reserves; and competitive multiple entry per booking. The independent oil company sees a high potential for increasing Papa-Terra’s recovery factor, with operations focused on efficiency and reducing the total cost of operation.

“The acquisition of the Papa-Terra field represents a major step for the Company and marks the beginning of its operations in deep waters, as well as reinforcing the construction of a diversified portfolio with mature assets onshore and offshore. Additionally, with the acquisition of the Papa-Terra field, 3R will expand its portfolio, substantially increase its production and strengthen its capacity to replenish and increase reserves”, wrote 3R’s Chief Financial and Investor Relations Officer, Rodrigo Pizarro, at the time the announcement of the acquisition of the asset.

The Papa-Terra field is located in deep waters in the Campos Basin, approximately 100km off the coast of the State of Rio de Janeiro. Its discovery took place in 2003 and production began in November 2013. The field is operated using the P-61 and P-63 units, with a processing capacity of 140,000 barrels of oil per day, and an injection capacity of 340 1,000 barrels of water per day, storage capacity of 1.4 million barrels and slots to connect up to 21 producing wells and 11 injecting wells.