ROYALTY RATE REDUCTION FOR TUBARÃO MARTELO FIELD
Rio de Janeiro, July 29, 2021 - Petro Rio S.A. ("Company" or "PetroRio") (B3: PRIO3), in accordance with art. 26 of the Novo Mercado Regulation, informs its shareholders that the country's National Petroleum, Gas and Biofuels Agency ("ANP") has approved on this date the Development Plan of the cluster consisting of the Polvo and Tubarão Martelo Fields.
Among other topics, ANP granted PetroRio a royalty rate reduction for the Tubarão Martelo Field, as an incentive to invest in the Field's revitalization. The approval establishes the reduction of the royalty rate from 10% to 5% on the incremental production resulting from the Field's investments, based on the concession contract and on Resolution 749/18, which regulates the royalty rate reduction on incremental production for mature fields.
As such, incremental production from new investments in Tubarão Martelo Field will have their royalty rate reduced to 5%, including the production of the TBMT-10HP well, expected to start production in September.
PetroRio is one of the largest independent companies in the oil and gas production in Brazil. The Company´s corporate culture seeks to increase production through the acquisition of new production assets, the redevelopment of assets, increased operational efficiency and reduction of production costs and corporate expenses. PetroRio's main objective is to create value for its shareholders with growing financial discipline and preserving its liquidity, with full respect for safety and the environment. For further information, please visit the Company's website: www.petroriosa.com.br.
This news release contains forward-looking statements. All statements other than statements of historical fact contained in this news release are forward-looking statements, including, without limitation, statements regarding our drilling and seismic plans, operating costs, acquisitions 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 news release not to place undue reliance on our forward-looking statements, since 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.
Praia de Botafogo, 370 • 13º andar • Botafogo • 22250-040 • Rio de Janeiro/RJ +55 21 3721 3800