Exploration

Petrosynergy has participated in nearly all the bidding rounds for exploration blocks held by the National Petroleum Agency (ANP).

Beginning with the end of the Petrobras state oil monopoly in 1999, Petrosynergy has to date acquired 29 blocks. It has invested over R$ 147 million, carrying out seismic prospecting, processing and interpretation of geophysical data and finally the drilling of 26 wells in four of Brazil?s onshore basins with the greatest geological potential: Recôncavo Potiguar, Sergipe/Alagoas and Espirito Santo.

All this activity resulted in an exploratory success rate of 43% and the discovery of 8 petroleum and gas fields which are currently in development and production, increasing reserves by more than 12,5 million barrels of oil and 461 million meters cubic meters of natural gas.

Petrosynergy pioneered in importing drilling and production rigs so as to comply with its exploration commitments vis-à-vis the Federal Government, considering that at the time there was no established service structure in existence.


Production

In the 2001 bidding round held for mature fields, Petrosynergy acquired 9 fields from Petrobras in the Alagoas basin, among them some which were part of pioneering efforts at petroleum exploration in the country during the 1950s. After investing in facilities, operational structure and well repairs, Petrosynergy achieved a significant production increase, from 200 barrels per day to 600 barrels per day, thus creating value for shareholders and the governments of the states where it operates, royalties for the owners of the land, and benefitting the Federal Government by making the country?s petroleum reserves productive.

Another challenge was how to make small gas reserves viable in fields acquired in Alagoas, which due to their low volume couldn?t sustain traditional production strategies. Implementing a project of truck-transported natural gas in 2011, the Lagoa Pacas field began production in 2011; thereby opening the way for development of the company?s other three gas fields.

As a result of these exploration activities, fields in Bahia (in the municipality of Catu), in Rio Grande do Norte (in the municipalities of Serra do Mel, Areia Branca and Macau) and in Espirito Santo were discovered. These fields represent a big operational challenge because of the distances involved and their location in rural areas or on the sea coast.

The company has future development projects which aim to drill about 40 wells and to increase production by 3.000 barrels per day.

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Petrosynergy © 2012