Seacrest Petroleo Bermuda Limited received overnight from the Brazilian National Agency for Petroleum, Natural Gas and Biofuels two letters ordering the Company's subsidiaries to carry out upgrade works on 58 loading sites used for tanker truck loading so that such sites are in compliance with applicable Brazilian regulations. The required work mainly comprises the construction of concrete pads at these sites and other structural improvements. The letters followed an operational safety audit by the ANP.

The ANP has not issued any orders directly impacting the Company's production, wells, drilling rigs or facilities. Because the storage tanks at the relevant sites are required by the ANP to be empty during the period in which the construction is ongoing, the Company anticipates that the work to be carried out will require a temporary reduction in its production at certain wells. However, based on the scope and duration of the work required, the Company's current preliminary estimate is that such reduction will have only a minor impact on quarterly production volume.

The Company will update the market as appropriate following further analysis. The Company has already initiated the construction of the concrete pads and anticipates that the costs will be limited. The Company's 300-well infill drilling program, the largest onshore in Brazil, is unaffected by the order.