Naftex Energy Acquires Proven Brazilian Reserves

Naftex Energy and its subsidiary Coplex Petroleo do Brasil Limitada has purchased an additional 15% interest in the Cavalo Marinho field and an additional 30% interest in the Estrela-do-Mar field for a conditional payment of US $14 million.

The Company will own 42.5 % of CM and 57.5% of EdM subsequent to the closing of the transaction.

This acquisition will:

  • Increase the Company's 2P reserves by 21%.
  • Represents a purchase price of US $2/bbl.
  • All in development costs estimated to be less than US $10/bbl on the 7 million barrels of acquired reserves.
  • Payment is conditional upon reaching certain milestones such as the approval of the transaction by the National Petroleum Agency ("ANP"), the partners' approval of the EdM development plan and ANP's approval of both the CM and EdM development plans.

The Company has received positive feedback from discussions held with its Brazilian banks with regards to financing the acquisition and its development costs.

The seller is Queiroz Galvao Perfuracao SA.

Naftex, currently, is the indirect owner of all of the shares in Coplex Brasil. Coplex Brasil participates with a 27.5% interest in three operating licenses offshore the Santo Catarina Coast in Southern Brazil, identified as the coral, Estrela-do-Mar and BS-3 (on the Cavalo Marinho field) licenses. The partners in all three licenses are Starfish Oil & Gas (with 7.5% participating interest), Queiroz Galvao Perfuracoes S.A. (30% interest) and Petrobras (35% interest). Petrobras is the operator of all three licenses.