Replies to post #1853 on Petro Rio S.A. ADR fka HRPTY

[DrillaHill]

goldcanyon, so far

HRT has found commercial natural gas in Solimoes, in huge volumes.
Subsurface resource capacity already established with base case 5 MM m3/d and high case of 7 MM m3/d (i, iii?).

HRT is searching for strategic partnerships to develop the projects of natural gas liquefaction and trading and/or installation of thermoelectric power plants in the Region. (iv?)

Farm-down process of Juruá Cluster blocks and New Frontier exploratory areas are under negotiation. 25% working interest is available (to come from HRT’s current 55%).

TNK Brasil will have an option (exercisable 30 months after approval of the Transfer by ANP) to acquire additional 10% of HRT O&G´s concession rights in the Solimões blocks (“call”), which should be priced based on resources and reserves. Should the call not be exercised, HRT O&G will have the right to sell the same 10% to TNK-Brasil (“put”), on similar terms.

Farm Down of 35% should be worth a few hundreds of millions of dollars in my opinion.
With a current market cap of US$150MM the FarmOut News should give the share price a nice boost.

HRT has found light oil in Solimoes and Namibia, unfortunately noncommercial oil, so far... (ii, v)

So I am not sure if HRT has completed any milestones so far, but surely they have every chance to fulfill them. Do not forget, TNK has already paid one billion Dollars. Today it will be interesting what other partners are willing to pay. The milestone deal is something to think about in the future.

GL!