Petro Rio S.A. ADR fka HRPTY

[DrillaHill]

MATERIAL FACT: PURCHASE OF INTEREST IN BRASOIL (12/21/2016)

PURCHASE OF INTEREST IN BRASOIL
ir.petroriosa.com.br/download_arquivos.asp?id_arquivo=E1C9BFCD-4AF6-41FD-BD6C-F446F002F451
Rio de Janeiro, December 21st 2016 – PetroRio, (“Company” or “PetroRio”) (BM&FBOVESPA: PRIO3, TSX-V: PRJ), hereby informs the execution, through one of its subsidiaries, of a Share Purchase Agreement aiming to purchase the indirect interest equivalent to 23.19% held by Goldman Sachs & Co. (“GS”) in Brasoil do Brasil Exploração Petrolífera S.A. (“Brasoil”).
Brasoil is a holding company, with indirect stake of 10% over the rights and obligations of the Manati Field concession contract, that, in turn, currently produces 4.1 million cubic meters of natural gas per day (approximately 26 thousand barrels of oil equivalent per day), ranking as the 8th largest producing field of natural gas in Brazil (*).
Additionally to the stake in the Manati Field, other relevant assets from Brasoil include the indirect stake of 100% in the concessions of the Pirapema Field – gas asset currently in development – and of Block FZA-M-254, both in the mouth of the Amazon River.
The closing of the sale and purchase transaction between PetroRio and GS is subject to certain conditions precedent, among which, the period for exercise of the right of first offer and tag along by the remaining investors of Brasoil, additional to the analysis of the transaction by the competent regulatory bodies, as deemed necessary.
The execution of this agreement is aligned with the Company's business model and acquisition growth strategy and it represents a diversification of its portfolio of revenue generating assets.