Page 14 - LatAmOil Week 49 2022

LatAmOil NEWS IN BRIEF LatAmOil

Net proceeds will also be applied to bring for- Santo basin, offshore Brazil in shallow waters.
ward the drilling and potential completion of the Approximately 72.4% gas has been recovered
Cascadura-2 development well. The funds raised and remaining 2P reserves are estimated to 19mn
will strengthen the Company’s balance sheet and boe gross per year-end 2022. The cluster has a
the Company also intends to use a portion of the 55-km gas pipeline connection to the Cacimbas
net proceeds for working capital purposes as it gas-processing plant (operated by Petrobras)
continues constructing the Cascadura facility. and has an unmanned platform owned by 3R
Touchstone Exploration, December 6 2022 Offshore with opex of approximately $5 per boe.
The Peroá cluster includes the Peroá and Can-
Maha Energy announces goá producing fields and the Malombe discov-
ery. Malombe is considered to be tied back to the
business combination with (20.7%), Halvard Idland (20.7%), AGR Petro- Peroá platform in the future and could add an
leum (9.1%) and Tore Myrholt (8.4%). The new estimated production of 16,000 boepd (gross) at
DBO 2.0 focusing on mature shares in Maha issued as consideration to DBO’s peak. During October 2022, gross production at
shareholders will be subject to a 1 (one) year the Peroá cluster was 2.5,000 boepd (gross).
offshore fields in Brazil lock-up from Transaction’s closing. 3R Offshore agreed the acquisition of the
Transaction Highlights: The Transaction Peroá cluster from Petrobras in February 2021
Maha Energy AB is pleased to announce that reinforces the construction of a diversified and the acquisition closed in 2022.
it has signed a binding term sheet regarding a portfolio balanced between mature oil and gas Papa Terra cluster: Papa Terra is a heavy crude
business combination with DBO 2.0 for a con- onshore and offshore assets. field located in deep waters in the Campos Basin,
sideration of 36,775,410 new shares in Maha. In addition to increased production and approximately 100 km off the coast of the State of
Maha and DBO have agreed in the term sheet to reserves, DBO brings vast oil and gas experience, Rio de Janeiro, Brazil. Approximately 2.4% of the
conclude the final documents during a 45-day a highly successful deal track record, and access oil has been recovered as of October 2022 and
exclusivity period. The Transaction is subject to further growth opportunities for Maha. gross 2P reserves are estimated to 166mn boe per
to inter alia confirmatory and satisfactory due The Transaction will increase Maha’s net 2P year-end 2022. This represents a 11.4% recovery
diligence, board approvals and, if applicable, reserves with approximately 18.5mn boe and is factor, which compares with an average of 15.6%
regulatory approvals, and a general meeting in estimated to add around 2,000 boepd net pro- for the Campos Basin, suggesting further upside
Maha approving the necessary resolutions. The duction in 2023. potential beyond the 2P reserves. During Octo-
Transaction is expected to close in Q1 2023. The assets in DBO comes with infrastructure, ber 2022, gross production was 16.0,000 boepd
DBO is a private upstream oil and gas including the Papa Terra FPSO (after closing) and production is expected to increase in the
company focusing on mature offshore fields and Peroa production platform, yielding lower coming years due to increased drilling activity.
in Brazil. DBO was established in 2017 and operating costs, and of which DBO indirectly Papa Terra was discovered in 2003 and pro-
has brought North Sea investors to invest into owns its pro-rata share, as a shareholder of 3R duction started in November 2013. The field is
Brazilian assets, working with Brazilian part- Offshore. developed with an FPSO (P-63) and a Tension
ners and applying the most advanced North Based on public reserve reports from DeG- Leg Wellhead Platform (P-61), both owned pro
Sea approaches to identify additional reserves, olyer and MacNaughton and Gaffney Cline, rata by the owners of the oil field, with a com-
develop mature oil and gas fields and increase the 1P and 2P reserves have an estimated value bined processing capacity of 140,000 bpd of oil,
oil and gas recovery. (NPV10) of $108mn and $166mn net to DBO an injection capacity of 340,000 bpd of water,
Maha and DBO had its first strategic dis- respectively, based on an oil price of $71 per bar- a storage capacity of 1.4mn barrels and slots to
cussions in 2018. Since then, the DBO group rel in 2023 and $66 per barrel thereafter and a gas connect up to 21 producing wells and 11 inject-
has invested about $40mn in equity and built price in the range of $5.0-5.5 per mcf. ing wells. Currently, 6 production wells and 3
a strong position in the Brazilian E&P market, Subtracting $21mn relating to (i) DBO’s share injection wells are active and all systems have
having invested in onshore fields with 3R, which of 3R Offshore’s contingent payments (subject to idle capacity to implement revitalisation and
was later incorporated in the listing of 3R Petro- oil price and production performance, as well as redevelopment activities.
leum on the Brazilian stock exchange. Building to the development of Malombe) and (ii) closing 3R Offshore agreed the acquisition of Petro-
on the partnership with 3R Petroleum, DBO consideration for Papa Terra cluster to be paid to bras’ working interests (62,5%) in the Papa Terra
became a 15% shareholder in 3R Petroleum Off- Petrobras, yields a net asset value of $86mn for Cluster in July 2021 and this acquisition is sub-
shore, which holds operated interests in produc- 1P reserves and $145mn for 2P reserves. ject to specific condition precedent.
ing oil and gas fields offshore Brazil. 3R Offshore The exchange of shares ratio in the Transac- Maha Energy, December 5 2022
is operator A (license to operate deepwater fields tion implies for DBO a price to net asset value of
in Brazil) and has two assets offshore Brazil – the approximately 0.42x based on 1P reserves values
Peroá cluster (100% operated working inter- and 0.25x based on 2P reserves values, and an PROJECTS & COMPANIES
est) and the Papa Terra cluster (62.5% operated EV/2P multiple (enterprise value to 2P reserves)
working interest, subject to completion of trans- of approximately $3.1 per boe. Vallourec wins major
action with Petrobras. Further to these assets, Reserves and asset values are derived from
DBO is continuously working on new business public reserve reports from DeGolyer and Mac- line-pipe order from
development opportunities, and will incorporate Naughton and Gaffney Cline
all its assets and efforts into Maha with the ambi- Based on closing share price of Maha of SEK ExxonMobil Guyana
tion to execute further growth through the joint 10.15/share and USD/SEK of 10.31 as of Decem-
strengthened platform. ber 2, 2022 Vallourec has secured a third major order in the
DBO’s major investors and shareholders are Peroá cluster – Peroá, Cangoa and Malombe: framework of the Long-Term Agreement (LTA)
Svein Harald Øygard (29.6%), Kjetil Solbrække The Peroá gas cluster is located in the Espírito signed last year with ExxonMobil Guyana.

P14 www. NEWSBASE .com Week 49 07•December•2022