HRT Gives Up Concession to Second Exploration Period Of Blocks In Solimões Sedimentary Basin

August 6, 2013

HRT Participações em Petróleo S.A. has notified the Brazilian National Agency of Petroleum, Natural Gas and Biofuels - ANP ("ANP") of its intention of not renewing the concession agreement for the second period of the exploration phase of Blocks SOL-T-219 and SOL-T-220, whose first period expired on March 3rd, 2013, and was subsequently postponed by ANP until August 3rd, 2013, thus relinquishing the areas of the relevant Blocks to that Regulatory Agency, the company reported in a news release.

The non-continuity decision on the exploratory process of the Blocks SOL-T-219 and SOL-T-220 is based on the difficulty in obtaining the due environmental and operational licenses, arising from the presence of two National Forests, positioned on both Blocks, the respective Buffer Zones and the adjacent flood plains, that would prevent the development of geological, geophysical, and drilling activities on the land.

HRT has carried out the activities comprised in the Minimum Work Obligations (MWO), which are required by ANP, and whose execution was not contingent upon the environmental licensing process (airborne geophysics, geochemistry on riverbeds and post mortem on pre-existing well data in SOL-T-220). In addition, it has carried out seismic surveys in the NW of Block SOL-T-219, where it was possible to obtain the partial environmental license, what has not occurred in the area of Block SOL-T-220.

HRT, with this relinquishment, is now the operator of 19 blocks in the Solimões Basin, which is exploring in partnership with TNK-Brasil.

Soruce: HRT Participações em Petróleo S.A., 2013.