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Press release from CNW Group

RELEVANT FACT - HRT Signs Farm-Out With Galp Energia for Namibian Blocks

Monday, November 26, 2012

RELEVANT FACT - HRT Signs Farm-Out With Galp Energia for Namibian Blocks23:10 EST Monday, November 26, 2012RIO DE JANEIRO, Nov. 26, 2012 /CNW/ - HRT PARTICIPAÇÕES EM PETROLEO S.A. (the "Company" or "HRT") (BM&FBOVESPA: HRTP3, TSX-V: HRP) announces the signature of a Farm-Out Agreement with the company Galp Energia in regard to the assignment of a 14% participating interest in exploratory rights over three (3) offshore Petroleum Exploration Licences (PEL) in Namibia - specifically PEL 23 in the Walvis Basin and PELs 24 and 28 in the Orange Basin. HRT will retain the operatorship of these PELs and is set to commence a drilling campaign in 1Q13.According to the terms agreed to by the parties, Galp Energia will carry part of HRT's share of costs, limited by a cap, associated with the drilling of wildcat wells, which are set to be drilled in 2013. The exploration program is expected to comprise the drilling of three exploration wells, in already identified and defined prospects, targeting two prospects in PEL 23 and one in PEL 24. These prospects carry both oil and gas assessments with material volumes, and are expected to be more oil prone.The three PELs cover an area of 37,744 km2 in water depths ranging from 180 meters to 2,500 meters. Both Walvis and Orange basins are located in a new exploratory frontier area in an emerging hydrocarbon province with potential for oil and natural gas discoveries with already identified, drill-ready prospects.It is important to highlight that HRT has carried out the largest 3D seismic acquisition campaign with excellent quality off the Namibian coast, which covered the areas where the three wells will be drilled, decreasing, therefore, the exploration risk.The main targets of these prospects have a combined estimated gross recoverable resource of almost 8 billion bbl (unrisked mean estimate) with POS (probability of success) in the 20% - 30% range."We are honored to have Galp Energia as a partner in these highly prospective assets. This partnership will enable HRT to bring into its drilling campaign the experience of a major company that has had outstanding performance in the search for hydrocarbons in frontier-exploration projects such as the Brazilian pre-salt and also the West-African deep-waters", CEO Marcio Rocha Mello commented.The transaction is subject to the requisite regulatory approvals, specifically the Namibian government approval.About HRTHRT 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/irFor further information regarding such prospective resources please refer to HRT's Statement of Reserves Data and Other Oil and Gas Information for fiscal year ended December 31, 2011 (Form NI 51-101F1) dated March 26, 2012 and filed under the Company's profile on SEDAR at www.sedar.com. The prospective resources estimates described therein and in this release are "undiscovered resources" as defined in the Canadian Oil and Gas Evaluation Handbook. There is no certainty that any portion of these resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources. Undiscovered resources are defined as those quantities of oil and gas estimates on a given date to be contained in accumulations yet to be discovered. The estimate of the potentially recoverable portions of undiscovered resources are classified as prospective resources. Prospective resources are defined as those quantities of oil and gas estimated on a given date to be potentially recoverable from undiscovered accumulations by application of future development projects.The above prospective resource estimate is presented in barrel of oil equivalents ("BOE's"). BOE's may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead."DisclaimerThis 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.SOURCE: HRT Participações em Petróleo S.A.For further information: Carlos Tersandro Fonseca Adeodato - CFO and Investor Relations Officer +55 21 2105-9700 ri@hrt.com.br