Concession contracts for Paraná Basin blocks signed

We participated in the signing ceremony of the concession contracts for the blocks auctioned in the 2nd Cycle of the ANP Open Acreage, held on December 4, 2020. The Company acquired a 30% interest in four onshore blocks – PAR-T-86, PAR-T-99, PAR-T-196 and PAR-T-215 – in the Paraná Basin, in partnership with Eneva.

 

The acquisition of these four blocks marks our entry in the Paraná Basin, considered as a border area due to the low amount of exploration activities carried out in the region, allowing the Company to be well-positioned to capture new business opportunities. We took this window of opportunity to diversify our asset base with low financial commitment.

 

Investments in the order of R$15 million are expected in exploratory activities for the Company. The blocks are located in the states of Mato Grosso do Sul and Goiás, with an extended area of approximately 11,544 km2, larger than the entire Recôncavo Basin, in Bahia. Upon successful discovery, the proximity to the gas consumer market would enhance the utility value of its production. The consortium could also replicate the successful reservoir-to-wire (R2W) model, generating electricity from natural gas.

 

The signature bonus for these blocks totals R$2.1 million, with R$633 thousand net to be disbursed by Enauta in the coming days. The Minimum Exploratory Program (MEP) tendered for 100% of the blocks corresponds to 1,000 km of 2D seismic survey to be carried out within six years.