3R Petroleum Óleo e Gás S A : Release de Resultados 2T22 - Versão inglês

Earnings | 2Q22

Rio de Janeiro, August 10, 2022 - 3R Petroleum Óleo e Gas S.A. ("3R" or "Company") (B3: RRRP3) hereby presents its earnings for the second quarter of 2022 ("2Q22"). Except as indicated otherwise, the financial and operational information described in this document is presented on a consolidated basis and in Brazilian Reais (R$), in accordance with International Financial Reporting Standards (IFRS).

Main Indicators (in thousands of R$, except as indicated otherwise)

	2Q22	2Q21	Y/Y	1Q22		Q/Q
Net Revenues	399,624	152,801	161.5%	375,294		6.5%
Adjusted EBITDA	205,796	89,246	130.6%	198,526		3.7%
Adjusted EBITDA Margin	51.5%	58.4%	-6.9 p.p.	52.9%		-1.4 p.p.
Total Production1 (boe/day)	12,246	5,635	117.3%	9,164		33.6%
Average Daily Production of Oil (bbl/day)	8,402	4,808	74.7%	7,686		9.3%
Average Daily Production of Gas (boe/day)	3,845	827	365.1%	1,478		160.1%
Average oil sale price (US$/bbl)	102.7	62.4	64.7%	93.8		9.3%
Average gas sale price (US$/MMbtu)	6.0	3.4	78.4%	5.9		2.1%
Lifting Cost (US$/boe)	12.7	7.1	79.4%	9.2		38.0%
¹ 3R equity interest

SECOND QUARTER HIGHLIGHTS AND POST REPORTING DATE EVENTS

Short-term Business Plan Pillars: completion of acquisitions, organic growth and risk mitigation

• Funding structure for Potiguar Cluster in advanced stage: Funding of US$ 500MM concluded;
• Start-upof operations at 3 new assets: Recôncavo (May/22), Fazenda Belém and Peroá (August/22);
• 6 of 9 assets incorporated into 3R operations and 2 more expected for 2022: Pescada and Papa-Terra;
• Start-upof Offshore operations with Peroá;

Development of a robust and diversified portfolio

• Updating of reserve certifications: Portfolio of 514.8 million barrels of oil equivalent (boe) in certified 2P reserves (180 million PDP), with 89% being oil and 11% gas;
• Huge proportion proven, developed and in production reserves (PDP): reduced operational execution risk;
• Portfolio with average daily production of 44.1 thousand boe in past 12 months, which 39.0 thousand boe held by 3R, including the assets in transition;
• Average production of 12.2 thousand boe/d of the integrated portfolio1 in 2Q22, +33.6% Q/Q and +117.3% Y/Y;
• Rise of 70.8% Y/Y in production of operated oil¹, +9.5% Q/Q;
• Consistent increase in production at the Recôncavo Complex, Rio Ventura and Recôncavo Clusters;

1 All of Macau, Areia Branca, Rio Ventura and Recôncavo Clusters and 35% of the Pescada Cluster operated by Petrobras.

Consistent financial results in 2Q22

• Net Revenues amounted to R$ 399.6 million, a rise of 6.5% Q/Q and +161.5% Y/Y;
• Net Revenues from oil represented 91.6% of the total, benefitted by a greater volume of oil and the upswing in the Brent price;
• Renegotiation of gas contracts for the Rio Ventura and Recôncavo Clusters with Bahiagás: better monetization of the Recôncavo Complex production;
• Adjusted EBITDA worked out to R$ 205.8 million, a rise of 3.7% Q/Q and 130.8% Y/Y;
• Adjusted EBITDA Margin wound up the quarter at 51.5%, even with transition expenses related to the assets still operated by Petrobras;
• Capex of US$ 16.3 million, workover activities and preparation of infrastructure for drilling campaigns;
• Consolidated Lifting Cost of US$ 12.7/boe in 2Q22, a competitive level even considering the assets integration phase and first revitalization activities.

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Message of Management

2Q22 featured an extremely challenging dynamic for capital markets amidst macroeconomic aspects where persistent volatility abounded in global markets. Even though the world is still dealing with complex geopolitical issues, besides rising interest and inflation curves, it is possible to note indications of a pickup in global activity and lower impacts of the Covid-19 pandemic. The O&G industry finds itself in a strategic position when compared with other sectors of the economy, backed by a global energy supply shock that has kept oil prices at high levels.

In this context, it is important to point out the resilience of the business model structured by 3R: a portfolio that counts on a huge proportion of proven, developed and producing (PDP) reserves that can be operated with a low operating cost and competitive break-even point. The Company has built up a portfolio of upstream assets diversified between oil and gas production, with onshore and offshore assets located in 5 States in Northeast and Southeast Brazil, and it has also acquired mid and downstream assets that are strategically integrated with the Potiguar Cluster, the most important production hub of 3R.

During 2022, 3R achieved several strategic achievements that mitigate execution risks and ensure the construction of its portfolio, production growth, expansion of operating results and, consequently, the long- term return to its shareholders and communities where its operations are located.

In the strategic aspect, the Company closed the Recôncavo Cluster, adding the fourth operation to its portfolio and the second operation in the State of Bahia. With this acquisition, 3R formed the Recôncavo Complex, a set of fields that will be operated in an integrated manner, sharing suppliers, teams, inventories and boosting commercial synergies. At the same time, the Company concluded the renegotiation of the contracts for the sale of gas produced in the Recôncavo and Rio Ventura Clusters, replicating an important milestone for 3R's commercial strategy, previously achieved for the assets of the Potiguar Basin.

In the operational sphere, in June 3R posted daily production of 12.6 thousand barrels of oil equivalent (boe) in its operated portfolio. The highlight was the operation of the Recôncavo Cluster, which represented more than 40% of the production and has continued with its trend for increased monthly production ever since it started up operations in the region. In June, the daily production of oil from the Rio Ventura Cluster posted increases of 41% and 102% when compared with the average for the entire first quarter of this year (1Q22) and the first month of 3R operation of the asset, respectively. Production for the second quarter of this year (2Q22) led to record results, with Net Revenues of R$ 400 million and Adjusted EBITDA of R$ 206 million in the three-month period, rises of 2.6 and 2.3 times when compared with 2Q21, respectively.

As a strategic post reporting date event, at the beginning of August 3R concluded the acquisitions of Fazenda Belém and Peroá Clusters, marking the entrance of the Company into the States of Ceará and Espírito Santo. The Fazenda Belém Cluster is part of the huge Potiguar Complex and will take advantage of the synergies generated by the joint operation of all the assets in the region. The Peroá field, on the other hand, marks the start of the offshore operations of the Company and will provide a marked rise in the production of gas by 3R. With these two acquisitions, 3R now controls the operation of 6 assets out of a portfolio, while preparing to complete the acquisition of the 3 assets in transition with Petrobras.

The reduced concentration of the production in a single asset and/or a single region of Brazil is one of the major strengths of 3R's portfolio. In this format, the gradual incorporation of assets to the portfolio operated by the Company guarantees our resilience in quarters like 2Q22. This is because in the quarter just ended operation of the Macau Cluster was affected by external factors and actually dropped compared with 1Q22. However, our earnings were more than offset by evolution of the operation at the Rio Ventura Cluster and the incorporation of the Recôncavo Cluster in our results as from May. This dynamic will tend to gain strength in the forthcoming quarters with the incorporation of more assets and, therefore, the rise in the distribution of 3R results through different wells, fields and assets.

Further in 2Q22, 3R managed to have updated the certifications reserves of the Macau, Recôncavo, Rio Ventura, Fazenda Belém and Pescada Clusters. Considering its consolidated portfolio, 3R can now draw on 515 million boe of proven plus probable (2P) reserves, of which 373 million barrels (or 73%) are proven (1P) reserves. It should also be highlighted that 35% of the 2P reserves, or 180 million barrels, are classified as proven, developed and producing (PDP) reserves, which renduces the Company's execution risk.

In August, 3R reached an important strategic milestone by securing a relevant portion of the financing needed to complete the acquisition of the Potiguar Cluster, the largest and most strategic asset acquired and with closing scheduled for the first half of 2023. In a challenging market, the Company obtained support from a strong syndicate, led by Morgan Stanley Bank, and structured a firm financing commitment of US$ 500 million, which has characteristics such as prepayment without penalties starting 12 months from the disbursement date. Thus, this strategy avoids allocating a significant volume of resources in the Company's cash months before closing, which reduces the interest incurred in the period, while reinforcing the capacity of the financial structuring to complete the acquisition.

Finally, it is worth mentioning that the results for the quarter are intrinsically related to the intense dedication and loyalty of the 3R team, which is permanently focused on the continuous improvement of its strategic, operational and financial results. Supported by a robust corporate governance structure, the Company's ambition is to become a reference in the Latin American oil and gas industry, both in production volume and in safety, diversity and positive social impacts on the communities in which it operates.