HRT pulls back on plans for Amazon exploration

By Gareth Chetwynd Rio de Janeiro

 16 August 2012 22:59 GMT

Brazilian start-up HRT Participacoes is cutting back on exploration plans in the Amazon region as it reduces its investment budget by 40% after losing another 50.6 million Brazilian reais ($26 million) in the second quarter.

However, the operator may face a bruising legal battle with contractors.

HRT has so far drilled eight wells in the gas-prone Solimoes basin since April 2011, but a ­geological model that predicted deep-buried oil pools has so far failed to deliver

HRT still had 1.43 billion reais in hand at the close of the second quarter, but has sharply reined in spending since selling a 45% stake in 21 of the Amazon blocks to TNK-BP last year.

HRT, which planned to put up to eight rigs to work in the Solimoes basin, recently rescinded…

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