QGEP Announces Farm-In Agreement

Rio de Janeiro, November 7, 2012 - QGEP Participações S.A. (BMF&Bovespa: QGEP3, "Company") today announced that Queiroz Galvão Exploração e Produção S.A, a wholly owned subsidiary, has entered into an agreement for the transfer of 30% of the exploration and production rights held by Petrobras at the Evaluation Plan Area of the Guanabara Prospect, which encompasses Blocks C-M-122, C-M-145 and C-M-146 (a section of the BM-C-27 Concession), located in shallow waters of the Campos Basin. Petrobras will remain the operator and retain a 70% working interest in the acquired blocks. The transfer of the participating interest to QGEP is subject to ANP approval.

Located 70 kilometers off the coast of Brazil in water depths of approximately 50 meters, the BM-C-27 Concession has one pre-salt prospect identified, Guanabara Profundo, which is expected to be drilled in 2013 and presents a higher probability of the occurrence of wet gas. The agreement in place with Petrobras will not require QGEP to disburse any upfront money for its participation in the acquired blocks. QGEP will carry a portion of the drilling costs at the Guanabara Profundo prospect. The exploration commitments to be disbursed by QGEP are currently estimated at US$55 million.

"This farm-in agreement underscores QGEP‘s strategy of expanding our exploratory portfolio and investing in high quality assets," commented Lincoln Guardado, QGEP‘s Chief Executive Officer. "It also diversifies our portfolio, providing us with a presence in the Campos Basin, the most prolific basin in Brazil, in an area of high prospectivity. Most importantly, the geological knowledge that can be attained from the region will better position us when we look to potentially acquire other exploratory assets."

The Company will provide further information on the farm-in agreement on the 3Q12 conference call which will be held on November 8, 2012.

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Updated in  2013-12-09T19:43:31
All the dates of this page are presented in official timezone of Brasilia - Brazil.

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