Petro Rio S.A. ADR fka HRPTY

[DrillaHill]

Polvo May Production was 10,350 boe/ day (100%)

www.anp.gov.br/?dw=71249 (pdf, p.15)

Considering the 60% purchase price of ~US$100MM (to BP after adjustments) minus 2014 production
my guess is HRT will have to pay ~US$60MM for an additional 40% of Polvo.
(US$100MM / 60 * 40 * (~0.9 ))

With HRT’s tax credits of ~R$231MM (US$104MM),
ir.hrt.com.br/hrt/web/download_arquivos.asp?id_arquivo=2D354203-DEB0-4568-9B8E-4B7593F0CEA2 (pdf, p.84)
an increase of ~ 67% (100/60) in revenues from Polvo Oil production looks very welcome to me and justifies the investment.

HRT will have to pay ~US$35MM/ developement well
to further increase production volumes,
but in my opinion it will be worth it:

Looking back to the estimated net production & revenue numbers (60%) from D&M,
investorshub.advfn.com/boards/read_msg.aspx?message_id=103967408
then from 100% would potentially be:

PROJECTION of PROVED-plus-PROBABLE RESERVES
and FUTURE NET REVENUE

Projection of 100% Polvo Oil Production
in 2014 ~4.5 mmboe
in 2015 ~7 mmboe

Projection of Pre-Tax Net Revenue
in 2014 ~US$197MM
in 2015 ~US$406MM

GLA