Petro Rio S.A. ADR fka HRPTY

[VanWilder]

Gusmaran Post (translated)

Comment 32684 to 32698 of HRT Petroleum, the Girl Oils - HRTP3
Gusmaran - 16 May 2013 - 11:27:34
The facts:

1) Friday the stock rises a lot with the largest volumes of history. At the end of the session, HRT announces the departure of Marcio;
2) Monday before trading, HRT announces the entrance of Milton with CEO, and a note at the end, announces the resignation of Wagner Peres. Market assumes that Peres and Mello left because Namibia was bad. Action plummets to half the volume;
3) Tuesday, the stock falls slightly due to the raw value that informs that "market sources" say that the well was dry, and when it begins to recover, the "Gradual Investments" which publishes the webcast, the " HRT would bore Wingat found that liquid hydrocarbons, but no oil, and that the company was drifting. " The action falls again;
4) Wednesday, the action starts to rise due to have found hydrocarbons in the layers found in the Devonian, Carboniferous and perhaps in. Comes the call, which in fact was a chasm between the old company presentations. Just read the questions and slides were fraquíssimas. In the absence of greater disclosure, since the new order imposed by the funds is GOVERNANCE (comments only facts and no prospects), the market saw the new stance as a failure in the exploratory campaign. Nevertheless, upstream.online detonates matter reckless on results that have not been officially disclosed;
5) Thursday: A paplpite released several times became absolute truth and follows the ball!

Do your analysis!

On the other hand, Paula said octopus should produce MM $ 60 of cash for free HRT per year, if no decline in production. BofA says the Ebitda would be $ 90 MM per year. On a conference call and presentation of results, we see that BP has not done one since taking drilling the well in 2011, and left over numerous leaflets provided reserves "probable" in reservoir sandstones. The pre-salt field is also a possibility, as well as other high-risk contingent resources. Based on this, the management of HRT expects not only KEEP the current production of 13k bbl per day, but INCREASE. However, HRT still can not give more information for contractual reasons. But come on. How much would a company with U.S. $ 120 Mm free cash per year, or more? What is it worth? At least U.S. $ 4 per share.

Now take a look at gas. The CS gives value $ 0.30 per share related to the project OGX Parnaíba. That's about U.S. $ 1 Billion. The project is producing 4 Mm m3 per day, and OGX holds 40% of it. Ie the production of 1.6 MM m3 of natural gas per day has a value of U.S. $ 1 Billion. Making rules 3, and remembering that the HRT and TNK produce conservatively somewhere between 5:07 MM m3 per day - Net to HRT from 2.75 to 3.85 MM m3 per day, then the value of our gas is 1,718 to R $ 2.4 Bi BI, or R $ 5.72 to R $ 8 per share.

Do your accounts.