Enauta Participações has announced that the Brazilian Oil, Gas and Biofuels Agency (“ANP”) approved the corporate guarantee arrangement as the financial guarantee instrument for the decommissioning of the Atlanta Field. Over the next few days, the amendment to the Concession Agreement will be signed by ANP, thus concluding the transfer of 50% of the rights and obligations for the exploration, development and production of oil and natural gas in the Field.

After the amendment to the Concession Agreement, the Company will start recognizing Atlanta’s full results in its financial statements. Enauta, which holds half of the Field's oil output, will then report the entire production, now at nearly 18,000 barrels per day, which is an all-time high volume for the Company. The Field’s estimated average production for 2021 remains at 14,000 barrels of oil per day, plus or minus 10% (ten percent) when the daily average is verified on an annual basis.

According to the material fact disclosed on December 21st, 2020, the agreement entered into with Barra Energia do Brasil Petróleo e Gás Ltda. (“Barra Energia”) provides for the transfer of US$43.9 million to Enauta Energia, related to the future abandonment of operations for the three wells and the decommissioning of existing facilities in the Field. This amount will be received upon signing of the amendment to the Concession Agreement.

Décio Oddone, Enauta’s CEO, commented: 
“Upon conclusion of the transfer of Atlanta Field, we are taking another important step towards increasing the Company’s cash generation. We will soon have three producing wells, which will enable us to meet the demand for Atlanta oil under a benign price environment. In addition, we are actively pursuing the implementation of the Full Development System in order to maintain our production and cash generation at higher levels for a long period”.

KeyFacts Energy: Enauta Brazil country profile