QGEP wins two high potential blocks at Brazil's 13th ANP Bidding Round

QGEP Participações S.A. (BMF&Bovespa: QGEP3), today announced that its wholly owned subsidiary Queiroz Galvão Exploração e Produção S.A. ("Company", "QGEP") has been awarded two blocks at the 13th Bidding Round hosted by the Agência Nacional do Petróleo, Gás Natural e Biocombustíveis (ANP).

The blocks acquired by QGEP, SEAL-M-351 and SEAL-M-428, are located in ultra-deep waters in the Sergipe-Alagoas Basin, between 80 to 100 km off the coast, and encompass a total area of 1,512 km2.QGEP was awarded 100% participating interest in both blocks.

"Sergipe-Alagoas is a well-established basin and has both oil and gas production from its onshore, shallow and deep-water portions. In the ultra-deep waters, there are currently six excellent quality discoveries in the evaluation stage. Thus, it is considered a low risk exploratory basin," said Sérgio Michelucci, QGEP´s Exploration Director.

QGEP committed a total of R$100 million as signature bonus for the two exploratory blocks: R$63.9 million related to Block SEAL-M-351, and R$36.1 million related to Block SEAL-M-428. In both cases, this was the minimum bonus required to bid. QGEP expects to expense approximately US$15-20 million for the acquisition of seismic data at the blocks over the next five years.

"The acquisition of these two blocks is an important advance for QGEP and consolidates our position as a leading Brazilian E&P player. Our strong cash position, combined with our experience as an operator and our active management of our portfolio, enabled us to purchase these blocks, adding value to the Company and our stakeholders," said Lincoln Guardado, QGEP's Chief Executive Officer.

For additional information, please contact the Company's Investor Relations team.

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Updated in  2015-10-09T12:00:36
All the dates of this page are presented in official timezone of Brasilia - Brazil.

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