Qgep Participacoes : assumes Premier Oil’s Stake in Block FZA-M-90

QGEP announces that it has entered an agreement to assume the 35% ownership stake that its partner, Premier Oil do Brasil Petróleo e Gás Ltda. ('Premier'), holds in exploratory block FZA-M-90. As a result, QGEP will now hold 100% interest in the Block. As part of the agreement, QGEP will receive US$9.2 million, which was calculated based on Premier's share of the minimum work programme guarantee as set out by the ANP under the terms of the license. The Block is located in the Foz do Amazonas basin covering a total area of 768.5 km2 . Seismic data acquisition for the block was already acquired and processed and is currently being reviewed to better define and prioritize the exploratory opportunities identified. In order to meet full compliance with contractual obligations, it will be necessary to drill an exploratory well until the end of the first exploratory period, originally scheduled for August 2018. 'This transaction gives QGEP leverage on future farm out opportunities, especially considering the latest discoveries on Guianas and Suriname. Despite the fact that the area is considered a frontier area, other operators should also engage in exploratory activity in future years which could greatly appreciate the blocks of equatorial margin' said Lincoln Guardado, QGEP's CEO. The transaction is subject to approval by the ANP and other regulatory bodies.