The FINANCIAL — Moscow, 18 July, 2011 – TNK-BP has signed a farm-out agreement with Petra Energia for the acquisition of a 45% stake in 21 blocks in the Brazilian Solimoes Basin.
The 21 oil and gas exploration blocks, majority owned and operated by HRT O&G, covering an area of approximately 48,000 km2, are located in the Amazon's Solimoes basin. According to a Degolyer & MacNaughton reserves audit report, the blocks bring today for the company a net prospective and contingent resource of 783 Million barrels of oil equivalent (BOEs). These include 11 discoveries, where oil and gas were tested. Initial production from the fields in the Solimoes basin is expected in 2012.
According to the signed farm-out agreement, the value of the transaction will depend on the future performance of the asset. HRT will remain the operator of the Solimoes project, with TNK-BP playing a more active role during the development and production stages.
The closing of the transaction will be subject to final agreement between TNK-BP and HRT concerning operations, approval from TNK-BP and HRT boards of directors, as well as approval from Brazilian federal regulators.
"We are pleased to have successfully completed negotiations with Petra Energia regarding a farm-out agreement for the Solimoes concession in Brazil," said Michael Fridman, executive chairman of the board of TNK-BP. "Negotiations on this project are still ongoing and a number of additional agreements have to be negotiated with the Solimoes operator and majority partner, HRT. Management hopes to have these agreements finalized before the end of August and submit the entire investment for Board approval by September."