PetroReconcavo sells 50% stake in seven fields in Rio Grande do Norte to Mandacaru Energia

(PN) PetroReconcavo signed a contract to sell 50% of its stake in seven concessions to Mandacaru Energia (Ubuntu). The assets (Acauã, Baixa do Algodão, Fazenda Curral, Fazenda Malaquias, Pajeú, Rio Mossoró and Três Marias) are located in the Potiguar Basin, in the state of Rio Grande do Norte. The fields currently produce 390 barrels of oil per day and correspond to 1.4% of PetroReconcavo’s total production.

The total value of the deal is US$5 million, with 40% to be paid by the closing date, subject to compliance with usual precedent conditions, including the approval of Brazilian regulatory bodies, and the remaining amount will be paid within two years in the form of investments in concession production development activities.

With the closing of the transaction, Mandacaru will assume the operation of the concessions, with the parties having negotiated the creation of a consortium and a Joint Operating Agreement, which will regulate joint operations between the two companies.

“This transaction is aligned with the Company’s portfolio management strategy and improvement of capital allocation, which increasingly concentrates its resources on continuing investment activities which, according to its reserves report, are more attractive for the Company”, said PetroReconcavo’s financial and investor relations director, Rafael Cunha, in a statement to the market.