Global Value Investing

[Koufax]

HRT Petroleo

This Brazilian oil explorer is headed by a colorful man, Marcio Mello. He spent 24 years at Petrobras and played a part in the decision of Petrobras to explore the pre-salt offshore formations of Brazil. While the exact scope of that resource is unclear, it appears to be huge.

At HRT, Mr. Mello began by exploring portions of the Amazon basin. According to the company's website:

HRT Oil & Gas holds a 55% working interest in 21 exploration blocks under concession in the Solimões Sedimentary Basin, in Brazil`s Amazonas State, with a total area of approximately 49.000 Km2. The blocks contain potential reserves estimated at between four billion and six billion barrels of light oil and between 10 trillion and 20 trillion cubic feet (Tcf) of natural gas. It is estimated that the basin is the largest producer of natural gas in Brazil and one of the largest of light oil.

HRT recently purchased UNX Energy Corp, which holds offshore interests the Republic of Namibia comprising a total area of approximately 26,000 square kilometers. Mr. Mellow believes that offshore Namibia contains an extension of the pre-salt deposits now being discovered and developed off of Brazil. HRT thinks that its Namibia fields may contain 5.2 billion barrels of oil.

Some consider Mr. Mello to be overly exuberant. Some consider him to be a genius. (He has raised over $1B in capital for HRT in fairly short order). HRT may be a company to watch. Its ADRs can be bought on the Toronto Venture exchange (HRT.V) or on the pink sheets as HRTPY.PK.

I own none right now. I may accumulate some slowly as I proceed with my due diligence. I pass this on in case someone here has previously looked at this company or wishes to.

http://www.bloomberg.com/news/2011-01-24/brazil-s-amazon-may-hold-super-giant-oil-fields-hrt-says-shares-climb.html