PRIO Acquisition of Albacora Leste Field

Petro Rio S.A. (“Company” or “PRIO”) (B3: PRIO3), following the Material Fact released on April 28, 2022, informs its shareholders and the market in general that, on this date, the payment regarding the acquisition of 90% interest and operation of the Albacora Leste Field (“Field” or “Albacora Leste”) with Petróleo Brasileiro S.A. (“Petrobras”) was made. The National Agency of Petroleum, Natural Gas and Biofuels (“ANP”) has already been notified of the closing of the deal and formal procedures are expected to be completed today.

Once the aforementioned procedures are concluded, PRIO will take over the asset’s operation, after a meticulous transition program carried out by a multidisciplinary team made up of the previous operator’s professionals and PRIO employees. Since the signing of the transaction, 16 working groups have enabled the handover of information and knowledge. During this period, more than 100 PRIO employees have embarked on the platform, learning the unit’s operational and safety routines.

The fixed price of the transaction totaled $1,951 million, of which $293 million was paid upon the signing of the agreement on April 28, 2022, and the remainder paid on this date, corrected by applicable price adjustments. Additionally, earnout payments totaling up to $250 million can be made, depending on future oil prices, as described in the Material Fact of April 28, 2022.

Albacora Leste has water depth of 1,200 meters and is located in the north of the Campos Basin, 23 km from the Frade Field. Discovered in 1986, the Field had its first oil in 1998 and currently has a production of approximately 32 kbbld (last 30 days average), of which 27,2 kbbld net for PRIO, with 19º API oil and low-sulphur content, produced through its 10 production wells and 6 injection wells currently operating.

According to the Reserve Certificaton Report, required by PRIO and developed by DeGolyer & MacNaughton (“D&M”), in October 2022 the Field had economically recoverable 1P reserves of approximately 280 million, with reserves of over 240 million barrels net to PRIO, and expects the Field to be abandoned after 2050. These estimates consider a long-term price of US$ 60 per barrel of oil.

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