PetroReconcavo Completes Sale of 50% Stake in Seven Concessions to Mandacaru Energia

Oct. 14 (moneytimes) PetroReconcavo announced to the market the completion of a farm-out with Mandacaru Energia on October 10th. A farm-out is a type of agreement in which one party transfers part of its stake in a concession to another, which assumes responsibility for exploration and/or development activities within that concession.

The transaction involves the sale of 50% stakes and transfer of operations in seven concessions in Rio Grande do Norte: Acauã, Baixa do Algodão, Fazenda Curral, Fazenda Malaquias, Pajeú, Rio Mossoró, and Três Marias, for a total value of US$5 million.

Mandacaru already operates the Cardeal and Colibri concessions in partnership with PetroReconcavo. Since taking over operations, the company has seen production growth.

Payment was made as follows: 20% by the closing date, 15% to be paid six months after that date, and the remaining balance, 65% of the total amount, will be allocated over a period of up to two years as PetroReconcavo’s counterpart in investments aimed at developing production from the concessions.

The agreement also provided for the formation of a consortium between the parties, with the execution of a Joint Operating Agreement (JOA), which will govern joint operations.

“The completion of this transaction reinforces the company’s strategy of portfolio optimization and efficient capital allocation, focusing on assets with the greatest economic attractiveness and return potential, reaffirming its commitment to sustainable long-term value generation and financial discipline,” said PetroReconcavo.

PetroReconcavo’s Production Struggle
September marked the fifth consecutive month of decline in PetroReconcavo’s production, accumulating a reduction of 1,900 barrels of oil equivalent per day (kboed) since the peak of 27.8 kboed in April. The new decline was primarily driven by lower production at the Tiê field in the Bahia area.

PetroReconcavo Completes Sale of 50% Stake in Seven Concessions to Mandacaru Energia

PetroReconcavo (RECV3) announced to the market the completion of a farm-out with Mandacaru Energia on October 10th. A farm-out is a type of agreement in which one party transfers part of its stake in a concession to another, which assumes responsibility for exploration and/or development activities within that concession.

The transaction involves the sale of 50% stakes and transfer of operations in seven concessions in Rio Grande do Norte: Acauã, Baixa do Algodão, Fazenda Curral, Fazenda Malaquias, Pajeú, Rio Mossoró, and Três Marias, for a total value of US$5 million.

Mandacaru already operates the Cardeal and Colibri concessions in partnership with PetroReconcavo. Since taking over operations, the company has seen production growth.

Payment was made as follows: 20% by the closing date, 15% to be paid six months after that date, and the remaining balance, 65% of the total amount, will be allocated over a period of up to two years as PetroReconcavo’s counterpart in investments aimed at developing production from the concessions.

The agreement also provided for the formation of a consortium between the parties, with the execution of a Joint Operating Agreement (JOA), which will govern joint operations.

“The completion of this transaction reinforces the company’s strategy of portfolio optimization and efficient capital allocation, focusing on assets with the greatest economic attractiveness and return potential, reaffirming its commitment to sustainable long-term value generation and financial discipline,” said PetroReconcavo.

PetroReconcavo’s Production Struggle
September marked the fifth consecutive month of decline in PetroReconcavo’s production, accumulating a reduction of 1,900 barrels of oil equivalent per day (kboed) since the peak of 27.8 kboed in April. The new decline was primarily driven by lower production at the Tiê field in the Bahia area.

PetroReconcavo (RECV3) announced to the market the completion of a farm-out with Mandacaru Energia on October 10th. A farm-out is a type of agreement in which one party transfers part of its stake in a concession to another, which assumes responsibility for exploration and/or development activities within that concession.

The transaction involves the sale of 50% stakes and transfer of operations in seven concessions in Rio Grande do Norte: Acauã, Baixa do Algodão, Fazenda Curral, Fazenda Malaquias, Pajeú, Rio Mossoró, and Três Marias, for a total value of US$5 million.

Mandacaru already operates the Cardeal and Colibri concessions in partnership with PetroReconcavo. Since taking over operations, the company has seen production growth.

Payment was made as follows: 20% by the closing date, 15% to be paid six months after that date, and the remaining balance, 65% of the total amount, will be allocated over a period of up to two years as PetroReconcavo’s counterpart in investments aimed at developing production from the concessions.

The agreement also provided for the formation of a consortium between the parties, with the execution of a Joint Operating Agreement (JOA), which will govern joint operations.

“The completion of this transaction reinforces the company’s strategy of portfolio optimization and efficient capital allocation, focusing on assets with the greatest economic attractiveness and return potential, reaffirming its commitment to sustainable long-term value generation and financial discipline,” said PetroReconcavo.

PetroReconcavo’s Production Struggle
September marked the fifth consecutive month of decline in PetroReconcavo’s production, accumulating a reduction of 1,900 barrels of oil equivalent per day (kboed) since the peak of 27.8 kboed in April. The new decline was primarily driven by lower production at the Tiê field in the Bahia area.