West Hawk Development Corp. has signed a Memorandum of Understanding (MOU) with Petrobras for a partnership to jointly develop on a fast track basis the Company's Figure Four Natural Gas Project in the Piceance Basin, Colorado.
The MOU outlines the timeline, scheduling, and plans for the partnership and complete transfer of site operations to Petrobras, as well as providing a provision for near term expansions in the Piceance Basin, and other parts of the United States of America. During the month of June, Petrobras executives and engineers will visit Colorado and make a site visit to conduct a thorough review and assessment of the Figure Four Natural Gas Project. Petrobras, under a confidentiality clause of the MOU, has accessed key pertinent information related to the Gas Project and are satisfied with the quality of the project and its prospective upside. Petrobras has assigned key professionals and senior staff to its due diligence team. Upon the conclusion of these technical and commercial meetings, Petrobras will prepare an offer. If accepted, West Hawk and Petrobras will work together to reach an agreement and conclude the transaction in August.
"Petrobras is the 3rd largest company in the Americas and is among the 5 largest oil companies in the world," said Mr. Gonzalo Torres-Macchiavello, President & CEO, Americas. "Their recently appointed new International Management Team is committed to develop quality oil and gas projects in stable regions of the world, including the United States, where they intend to invest $ 4.8 billion until year 2012 in upstream and downstream oil and gas projects. Petrobras is considering the Figure Four Project as a logical and strategic step to start operations in the Piceance Basin, the largest gas play in North America."
"This partnership will bring important financial resources, technology, know-how and a bench mark for the international oil and gas industry to the heart of the Piceance Basin," said Dr. Wm. Mark Hart, President & CEO, West Hawk Development Corporation.
"Petrobras is seriously examining the project as a very strong potential candidate to become our first natural gas project in the United States," added Mr. Jorge Luiz Zelada, Petrobras International, Business Director. "We know the qualities of the Piceance Basin and the developments that are taking place there. Certainly, it is a place to be."
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