HRT evaluates funding for investment
05/09/2014 at 05:00
HRT evaluates funding for investment
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By André Ramalho | Do Rio
HRT Oil signaled that can go to the market to raise funds to invest in the project that aims to stretch the life of the Polvo field in the Campos Basin. The company's president, Milton Franke, said the oil company is considering funding to fund planned investments in the first perforations, which should require, initially, about $ 60 million.
The idea of HRT is drilling, at first, two producing wells in 2015 According to Franke, the first well is expected to cost $ 35 million. Investment already planned for the second is $ 25 million.
The company's plan is to dedicate the next few months, the first intervention in the area, such as the installation of subsea equipment. The commencement of drilling is planned for the beginning of 2015 Initially, the company plans to re-enter abandoned wells.
The financing plan for the recovery project Octopus, he said, is still being discussed. The company ended the first quarter with free cash of R $ 365 million position. The oil, however, still need to shell out the amount for the purchase of share of Maersk, 40% in the field. The company does not comment on the amounts involved in the negotiation, but, for comparison, 60% of bought cost BP $ 135 million in December last year.
The company's plans also include the intention to use part of the cash to purchase mature assets already in production in Brazil. HRT evaluates camps on land or at sea, preferably in the Campos Basin.
The Polvo field, the only active production of oil, is the main source of cash for the company. This month, the company expects to sell the fourth load of oil produced in the area, operated by the company since the beginning of the year. The expectation is to sell 550,000 barrels. In June, the oil had already shipped 595,000 barrels, which earned him a net income of R $ 138 million in the second quarter.
The lifespan of Octopus, according to Franke, should run out in two to three years. With the recovery project, the goal is to keep the production on the field over 10 thousand barrels per day and extend the life of the area for another ten or fifteen years. According to HRT, Octopus produced on average 10,400 bpd in the second quarter, down 14% YoY.
