Great stuff here.......I like the fact that with Gas monetization and Polvo, HRT should have nearly zero risk of running out of funding long term. That was the only downside here.
HRT purchase share 60% of BP in Polvo field and shut critics
By Claudia Schuffner | River
Marcio Mello, founder and shareholder of HRT, says he "took too much" of minority shareholders who criticized management and wages paid by the company.
A week after facing a very tough meeting of shareholders of HRT, Marcio Mello, founder and chief executive of the company, announced to the market to purchase a 60% share of the Polvo field, in the Campos Basin, which was owned by BP. The deal was $ 135 million, took six months to complete and in Mello, is that "most significant in the history of HRT" since the initial public offering (IPO) of the company, in October 2010.
The Polvo field produced 13,931 barrels of oil equivalent (BOE) per day in March, of which 13,671 barrels exclusive oil and gas remaining. The other partner in the area, with 40%, is the Danish Maersk. A part of BP's production Octopus in March was 8,359 BOE, according to the National Petroleum Agency (ANP).
"We were looking to buy production and avoid volatility, but no point buying six per half dozen," the executive said yesterday the value, if showing alleviated with the completion of the negotiation.
HRT obtained a loan from Credit Suisse who has two years to be settled and grace period of 12 months. Of the $ 135 million that will be paid will be discounted revenue and production since January 2013, the reference date of the contract, which will make the final value lower.
Additionally, the Executive Manager Planning and New Business of HRT, Ricardo Dourado Bottas, explained that the company may also use about U.S. $ 400 million in tax credits. According to him, this will make the operation more advantageous since it can be done with what Gold calls "efficiency costs and tax efficiency."
The acquisition of the Polvo field silent, at least for now, shareholders unhappy with the lack of commercial discoveries of oil by the HRT, which found 1 trillion cubic feet of gas but not oil in the Amazon, and now explores the coast of Namibia .
Earlier this year Mello anticipated his departure from the presidency of the board of HRT, replaced by John Willot his stated last week, facing discontent shareholders as the Southeastern U.S. funds and Discovery. The latter asked multiple voting and elected three independent directors. Past the critical moment on which the executive says only that "got too much," Mello wants to look to the future.
Excited, noted that HRT knows Octopus since the development of its production, as a service provider for the former owner, Devon. There, he says, HRT sees several possibilities for gains and improvements, as well as know the area, the grant (which has 134 square miles) has six other prospects already mapped with 3D seismic, one in the pre-salt.
"We bought a field into production with the possibility of exploring other nearby areas and we will explore to see if it's worth, including new exploration wells," said the president of HRT O & G, Milton Franke, who participated in the interview.
The price includes the purchase of 100% of BP Energy America LLC, owner of the fixed platform "The Octopus", and a rig capable of drilling horizontal wells up to 6000 meters, both used for the production in the field. This platform is connected to another, like a floating production, storage and offloading (FPSO) called Octopus, which is chartered BW contract in a long-term lease.
The FPSO is capable of processing 150,000 barrels / day and is also prepared to make the separation of oil and gas, water treatment, storage and transfer. Marcio Mello said that the facilities there will substantially reduce costs in case of new additions in the production area. The businessman said his dream is to transform the company into a perennial HRT and Octopus will ensure the financial results of oil in 2013 and 2014, and the exploration potential of the area can guarantee results from 2015. Once approved, the acquisition will put in the position of HRT fifth largest oil producer in the country. According to Mello, the company is seeking other assets in production for one year and can buy more.
The company will participate in the 11th Round of the ANP in associations that "come with intellectual capital" and the partner responsible for the money being offered, "carrying" (second language sector), HRT.
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