(PetroRio, 15.Aug.2019) — PetroRio, the largest independent oil and gas company in the country, closed the second quarter of 2019 with records in operational and financial metrics, consolidating the success of the acquisition and integration of Campo de Frade. Net revenue recorded a record of R$547.9mn, a result attributed to the increase in the number of barrels sold, resulting from Frade’s 52% slice and the higher production volume in Polvo.
The company’s total production grew 73% in the first half of 2019 compared to the first half of 2018. As the main operational highlight in the quarter, Frade’s production increased by 12% year over year as a result of measures, such as gas injection, to reduce the decline in the field, after the company completely took over the operation.
Free Cash Flow was also highlighted, with R $ 287 million, the highest cash generation in the company’s history. “This quarter’s results reinforce our successful strategy. These achievements were made possible due to the work and commitment of everyone at PetroRio. It was a record period, such as sales volume, production, revenue, EBITDA and lifting cost. Looking to the future, we are committed to extracting the maximum potential from our two operated fields, in addition to seeking new acquisitions, where we hope to create even more value for our shareholders ”, points out Nelson Queiroz Tanure, PetroRio’s CEO.
The company’s total lifting cost decreased 29% year-over-year and 22% compared to the first quarter. The improvement is due to the synergies between the operations of Frade and Polvo, and initiatives to reduce operating costs implemented after the consolidation of operations. PetroRio also had an adjusted EBITDA of R$262.3mn in the second quarter, 184% higher than the same period last year and 643% higher than the first quarter of 2019.
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Frade Field
Regarding Frade’s operation, operational efficiency in the quarter reached 99.1% and there are no shutdowns scheduled for 2019 in the Field. The overall revitalization project for the Field was divided into 2 phases and considers the drilling of 4 producing wells and 3 injectors. The 1st phase of the global project includes 1 producing well and 2 injector wells and is scheduled to start in the second half of 2020.
Polvo Field
In the first six months of 2019, Polvo production was 46% higher when compared to the first half of 2018, as a result of last year’s Drilling Campaign. Based on these results, PetroRio has mapped 22 prospects with oil potential for a new drilling campaign in 2019, which will begin in September, and expects to drill up to four prospects this year. The estimated cost of the four wells will total between $30mn and $60mn, depending on the commerciality of each one. The estimate is that each well will be able to generate up to 2,000 additional barrels per day for the company’s production.
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