RIO DE JANEIRO, May 20, 2013 /CNW/ - HRT Participações em Petróleo S.A. (the "Company" or "HRT") (BM&FBOVESPA: HRTP3, TSX-V: HRP) through its wholly-owned subsidiary HRT Walvis Petroleum (Proprietary) Ltd. ("HRT Walvis"), announces that its first exploration well (Wingat-1 2212/07/1) in a multi well offshore program in Namibia has found oil although not in commercial volumes. This well is located in Petroleum Exploration License 23 ("PEL-23"), in the Walvis Basin, offshore Republic of Namibia. The well, spudded on March 25, was drilled in water depths of circa 1,005 meters and has reached a final depth of 5,000 meters.
The main objective of the well was to test the resource potential of the Albian age carbonate platform, which was penetrated on targeted depth, but its reservoir quality is much less developed than originally expected.
The Wingat well was initially planned to be drilled to a total depth (TD) of 4,127 meters, but because of the potential to drill deeper to test the presence of turbidite reservoirs and the opportunity to penetrate and to sample the main source rock, the consortium decided to go deeper, to a final TD of 5,000 meters. This decision was also supported by the increasing concentrations of hydrocarbon shows present in the well below of the depth of 1,500 meters. The Wingat-1 was drilled in 68 days by the semi-submersible Transocean Marianas (NYSE:RIG - News) and within the budget.
The information obtained, coupled with the results of preliminary studies of all data collected from the well, allowed HRT to identify two well-developed source rocks, which are rich in organic carbon and both are within the oil-generating window. Also, the well encountered several thin-bedded-sandy reservoirs that are saturated by oil. HRT collected four samples of this oil, each of 450cc, and the analysis of these samples indicated the presence of light oil, 38o to 42o API, with minimal contamination. No water-bearing zones were identified in the drilled section. The well is currently in the process of being plugged and abandoned.
The fact that the source rock is in the oil window and generating liquid hydrocarbons of excellent quality confirms the source potential of the basin. As such, the results of Wingat-1 Well provide important information that will help calibrating and guiding HRT's next exploration steps in the Walvis Basin. These source rocks present in the well can charge reservoir intervals of other prospects identified in the license, including Murombe Prospect, which will be drilled next.
Murombe Well will be drilled about 15 kilometers westward of Wingat-1, it will test a Cretaceous basin-floor fan and its spud-in is expected to happen latter in May. This well will be the second of a three-firm-well drilling campaign that HRT is currently running in Namibia.
"We are pleased with Wingat-1 overall results. The confirmation of the presence of high quality source rocks that are clearly in the oil-generation window, coupled with the IFA formation testing, which recovered light-oil from the reservoirs we penetrated, were major achievements obtained by this well. The find and recovery of the first oil offshore Namibia make us feel confident that we will achieve our goals that were set for our drilling plans in the Country. Our efforts will now be to proceed to our second exploration location in this basin - the Murombe-1 well, which will target turbidite reservoirs located above and beneath these source rocks within the same PEL," highlighted Milton Romeu Franke, the CEO of HRT.
HRT is the operator of 10 blocks offshore Namibia, which are contained in 4 Petroleum Licenses. GALP Energia (NYSE Euronext Lisbon: GALP), with a 14% participating interest, is HRT's partner in the drilling of the first 3 wells of the current exploration campaign.
For further information, please contact HRT`s Investor Relations Department.
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HRT Participações holds one of the largest independent oil and gas exploration and production companies in Brazil. The HRT Group comprises eight main subsidiaries: IPEX (Integrated Petroleum Expertise Company Serviços em Petróleo Ltda.), HRT O&G Exploração e Produção de Petróleo Ltda., HRT Netherlands B.V., HRT África Petróleo S.A., HRT América Inc., Air Amazonia Serviços Aéreos Ltda. and HRT Canada Inc.. The Company retains a 55% interest in 21 exploratory blocks in the Solimões Basin. HRT also operates ten exploratory blocks off the Namibian coast: eight blocks in the Orange Sub-basin and two blocks in the Walvis Sub-basin. HRT's team includes PHDs and masters in geochemistry, geophysics, biology and engineering, most of them former employees of Petrobras and ANP (Brazil petroleum agency). HRT is committed to minimizing any possible environmental impacts in the sites where it acts. Our commitment to the local communities is towards health conditions, safety and quality of life. For more information, please visit the Company's website: www.hrt.com.br/ir
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 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 news release are made as of the date of this news release. Except as required by applicable securities laws, we do not undertake to update such forward-looking statements.
Image with caption: "Petroleum Exploration License 23 ("PEL-23"), in the Walvis Basin, offshore Republic of Namibia (CNW Group/HRT Participações em Petróleo S.A.)". Image available at: http://photos.newswire.ca/images/download/20130520_C8479_PHOTO_EN_26916.jpg
SOURCE: HRT Participações em Petróleo S.A.
Carlos Tersandro Fonseca Adeodato - CFO and Investor Relations Officer
Sandra Calcado - Investor Relations Manager
Tainah Costa - Investor Relations Senior Analyst
+55 21 2105-9700