Presentation on theme: "-1- 1Q13 Highlights. -2- DISCLAIMER This presentation contains forward-looking statements. All statements other than statements of historical fact contained."— Presentation transcript:
-1- 1Q13 Highlights
-2- DISCLAIMER This presentation contains forward-looking statements. All statements other than statements of historical fact contained in this presentation are forward-looking statements, including, without limitation, statements regarding our drilling and seismic plans, operating costs, acquisition of equipment, expectations of finding oil, the quality of oil we expect to produce and our other plans and objectives. Readers can identify many of these statements by looking for words such as “expects”, “believe”, “hope” and “will” and similar words or the negative thereof. Although management believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. By their nature, forward-looking statements require us to make assumptions and, accordingly, forward-looking statements are subject to inherent risks and uncertainties. We caution readers of this presentation not to place undue reliance on our forward-looking statements because a number of factors may cause actual future circumstances, results, conditions, actions or events to differ materially from the plans, expectations, estimates or intentions expressed in the forward-looking statements and the assumptions underlying the forward-looking statements. The following risk factors could affect our operations: the contingent resource and prospective resource evaluation reports involving a significant degree of uncertainty and being based on projections that may not prove to be accurate; inherent risks to the exploration and production of oil and natural gas; limited operating history as an oil and natural gas exploration and production company; drilling and other operational hazards; breakdown or failure of equipment or processes; contractor or operator errors; non-performance by third-party contractors; labour disputes, disruptions or declines in productivity; increases in materials or labour costs; inability to attract sufficient labour; requirements for significant capital investment and maintenance expenses which HRT may not be able to finance; cost overruns and delays; exposure to fluctuations in currency and commodity prices; political and economic conditions in Namibia and Brazil; complex laws that can affect the cost, manner or feasibility of doing business; environmental, safety and health regulation which may become stricter in the future and lead to an increase in liabilities and capital expenditures, including indemnity and penalties for environmental damage; early termination, non-renewal and other similar provisions in concession contracts; and competition. We caution that this list of factors is not exhaustive and that, when relying on forward-looking statements to make decisions, investors and others should also carefully consider other uncertainties and potential events. The forward-looking statements herein are made based on the assumption that our plans and operations will not be affected by such risks, but that, if our plans and operations are affected by such risks, the forward-looking statements may become inaccurate. The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement. The forward-looking statements included in this presentation are made as of the date of this presentation. Except as required by applicable securities laws, we do not undertake to update such forward-looking statements.
-3- HRT OIL & GAS SOLIMÕES -3-
-4- SOLIMÕES BASIN HIGHLIGHTS 1.ANP approval of 4 years extension of Exploration Phase of 10 blocks and HRT O&G qualification as Operator A; 2.Conclusion of seismic acquisition on Blocks 194 and 195 and mobilization for new survey in the east; 3.HRT-10 DST gas discovery, extending the exploration frontier to the south in the western part of the acreage; 4.Mobilization of QG-VIII to Aruã Cluster and drilling of HRT-1; 5.Conclusion of Group 2 work in Gas Monetization Project.
-5- SEISMIC ACQUISITION IN BLOCKS 194 AND 195 And new seismic to be acquired in 2013 and 2014 The objective of the surveys in blocks 194 and 195 was to confirm three prospects that had been identified through old seismic: Guaraná, Bacuri and Pequi; This new seismic was acquired with new parameters and the results confirmed better quality; Seismic data is under processing and processed data are being used to review the mapped prospects. Southwestern Seismic Eastern Seismic Acquired Seismic
-6- HRT-10 WELL RESULTS CONFIRMED THE EXTENSION OF THE HYDROCARBONS FRONTIER TO THE SOUTHERN BLOCKS HRT-10 RESULTS 1.First HRT well drilled using LWD and main reservoir was cored; 2.DST 2, ,260m, gas production with 389M m 3 /d, 32/64” choke and AOF = 1.6MM m 3 /d; 3.DST 2, ,218m, gas production with 140M m 3 /d with 32/64” choke.
-7- UPSTREAM: Subsurface resource capacity already established with base case 5 MM m 3 /d and high case of 7 MM m 3 /d; Engineering studies and cost estimates concluded for Gathering system; Production facilities and export pipeline; DOWNSTREAM: Visit to units of Celanese, Ventech and Velocys in USA; Cost estimation for GTL, LNG and Power Generation; MARKETING: Draft Reports issued and workshop held with Petrobras and TNK-BP; ECONOMICS: Economic model construction underway. SOLIMÕES GAS MONETIZATION HIGHLIGHTS
-8- IN CONCLUSION, THE FIRST QUARTER OF 2013 OFFERED IMPORTANT INFORMATION FOR SOLIMÕES EXPLORATION New seismic is key for Solimões future exploration – acquisition with new parameters in the Blocks 194 and 195 has improved data quality that should imply in better prospect definition; HRT-10 data consolidation has confirmed the exploration potential of the southwestern blocks of the basin and offering new guidelines for future seismic surveys; Gas monetization project is being finalized: engineering, cost, evaluations, new technologies and onsite installation visits in the USA.
-9- HRT AFRICA -9-
-10- WINGAT-1 WELL: DRILLING UPDATE First prospect to be drilled, spud-in on March 25 th. Albian carbonate reservoirs in a combination trap with 381km 2 of area, which structural component has capacity to hold over 350MM BOE of recoverable reserves; Current activities to be concluded up to next week. 3D-View of the main objective Wingat-1
km 4000m 5000m 3000m WINGAT-1 (2212/07-1) Top Carbonate Platform Hard Soft G’ Hig h Lo w A Trough Amps A’ A PSDM XLN 1940 (Zoomed) WINGAT WELL RESULTS TD 5,000 meters
-12- Top Murombe Fan Complex Source Rock Top Seal Base Murombe Fan Complex 4000m 5000m 6000m 5 km C C’ N C PSDM XLN 1900 (Zoomed) Baobab Sivaradi PLANNED MUROMBE WELL Murombe-1 Proposed Location Source Rock
-13- HRT OIL & GAS POLVO FIELD
-14- POLVO FIELD AT A GLANCE CONCESSION: Discovery: 1993 (Guarajuba 1-RJS-486), 2001 (Quissamã) Declaration of Commerciality July 2005 Working interest: BP: 60%; Maersk: 40% (no first right of refusal) Water Depths m PLATFORM AND FPSO: Owned, single, 24-slot platform (with warm-stacked drill rig) Produces to leased, turret-moored FPSO; Both platform and FPSO in 100m WD WELLS (DRY TREES): 10 producers, 1 water injector Guarajuba Upper Cret. Sandstones (6+1 wells) Quissama Albian Carbonates (4 wells) PRODUCTION: First Oil 2007 Current production: 13 MBOD (gross) 8 MBOD (net) Export Crude: 20+ API
-15- Source: ANP (maps.bdep.gov.br) POLVO FIELD AREA Distance: 100 km (Cabo Frio) Area: 134,19 Km 2
-16- POLVO FIELD RESOURCES PROVED POSSIBLE PROBABLE High-risk contingent resources PROVED
-17- POLVO AS AN ASSET OF HRT HRT has a long history with POLVO FIELD HRT America technical team came from Devon IPEX (Ex HRT Petroleum) was a service provider HRT’s strategies with POLVO FIELD 1) Maintain Safe and Compliant Operations, giving priority to people and HSE processes; 2) Sustain established oil production, and introduce measures and initiatives for production increase; 3) Work on Polvo re-exploration, acquiring new seismic data, if necessary, and drilling new exploration and development wells; 4) Identify new production alternatives in mature fields in Campos Basin. 5) Receive a cash flow from proved reserves on short term and a cash flow from the upsides on middle term
-18- Dr -18- HRT FINANCIALS
CASH FLOW Million BRL -19
-20- HRT Participações S.A. Av. Atlântica 1130 – 10º andar - Copacabana CEP Rio de Janeiro - RJ - Brazil INVESTOR RELATIONS CONTACT Sandra Calcado Gerente de RI +55 (21) Carlos Tersandro Adeodato Diretor Financeiro e de RI +55 (21) Tainah Costa Analista Sênior de RI +55 (21)