3R Petroleum 1Q23 Earnings Release

3R Petroleum Óleo e Gas S.A. (“3R” or “Company”) (B3: RRRP3) hereby reports its results for the first quarter of 2023 (“1Q23”).  Except as indicated otherwise, the financial and operational information described hereinafter are presented on a consolidated basis, are expressed in Brazilian Reais (R$), and are in accordance with International Financial Reporting Standards – IFRS.

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2023 Priorities: Execution of the Business Plan

• Consolidation of portfolio with conclusion of transition processes underway: Potiguar & Pescada Clusters
• Operational safety:
intensification of integrity and maintenance activities for equipment and systems of facilities and infrastructure of production assets
• Execution:
operational resilience and rise in production curve
• Investments:
execution of Capex plan drawn up to support evolution of production
• Structure of capital:
balanced, enhanced leverage, and support for investment planWide-Ranging and Diversified Portfolio

7 of 9 assets already incorporated into portfolio, onshore and offshore operation in 4 sedimentary basins
• Updated certification of reserves,
as of December 2022, and consolidated into a single certifying firm
• 516 million boe in certified 2P  reserves,
of which over two thirds (71%) are proven (1P) reserves
• 88% of our 2P reserves are oil
and 12% involve natural gas reserves
• 89% of the Company’s 2P reserves are in onshore or near-shore waters
• Useful lifespan of our 2P reserves exceeds 15 years,
considering estimated production peak

Greater Scale and Improvement of Production Systems

• Proforma portfolio  posted 39.0 thousand (Th.) barrels of oil equivalent per day (boe/d) in 1Q23, with over half (54%) incorporated into 3R’s portfolio
• Average daily production passed threshold of 20 Th. boe/d in 1Q23,
+35% Q/Q or +126% Y/Y
• Intensification of integrity and systems backup activities:
search for greater resilience of production infrastructure
• Start of onshore drilling campaign,
in March 2023 in the Potiguar Basin

Consistent Financial Results and Optimization of Capital Structure

• Funding for Potiguar Cluster, US$ 1 billion in debts awaiting closing for disbursement
• Proposal to increase capital that can reach up to R$ 900 million:
optimization of 3R capital structure and encouragement of shareholder base participation
• Record net revenues, R$ 573.7 million,
growth of 28.9% Q/Q or 53% Y/Y
• Negotiation of new oil agreements in Bahia:
expansion of portfolio of products sold and better commercial terms that should drive improved results in 2Q23
• Adjusted EBITDA amounted to R$ 155.6 million in this past quarter
, a rise of 38.1% Q/Q
• Adjusted EBITDA Margin of 27.1%
, even considering transition expenses
• Net income of R$ 16.1 million in this past quarter
• Capex of US$ 32.7 million in 1Q23,
with allocations focused on workovers, reactivation of wells and facilities
•  Lifting cost of US$ 23.1/boe in 1Q23Y

1 Proven plus probable reserves (2P)
2 Includes 3R working interest in assets still in operational transition phase (65% of Pescada Cluster and 100% of Potiguar Cluster)

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