Brazilian independent 3R Petroleum plans to raise as much as 2.48 billion reais ($440 million) through a new share offering that is potentially aimed at funding acquisitions and investment at existing assets.
It is the second follow-on offering issued by 3R since it debuted on the Brazilian stock exchange in late 2020.
According to a securities filing, the offering would consist of 36.5 million new shares to be issued by 3R.
“The pricing of the restricted offering is expected to occur on 4 November,” said the company. 3R shares closed at a price of 33.95 reais on 22 October.
The company said that depending on demand, the total number of shares proposed may be doubled, consisting of another batch of 29.2 million new shares plus 7.3 million shares owned by current shareholders Esmeralda and R3 FIP Investimentos.
Back in March, 3R obtained 822.8 million reais in a follow-on offering, just four months after the company raised 690 million reais in an initial public offering.
3R is currently bidding in a number of Petrobras divestment processes, including the Albacora Leste field, this one in partnership with Brazilian player Enauta and US private equity fund EIG Global Energies.
Separately, a certification report published by consultancy DeGolyer & MacNaughton estimates the Papa Terra offshore field in the Campos basin to hold 172 million barrels of oil equivalent in proven plus probable reserves.
A few months ago, 3R announced the purchase of an operating 62.5% stake in Papa Terra from Petrobras for $105.6 million. The deal has yet to be approved by regulators. US supermajor Chevron holds the remaining 37.5% working interest.
Papa Terra produced 19,900 barrels of oil equivalent per day in August via the P-61 dry-tree tension-leg wellhead platform and the P-63 floating production, storage and offloading vessel.
3R estimates output from Papa Terra to increase in the coming years through the redevelopment of existing reservoirs, reaching peak production of approximately 35,000 boepd later this decade.
The Papa Terra investment is being carried out through a 3R-controlled subsidiary company called 3R Offshore, formed in partnership with DBO Energy, a private company specialised in redeveloping mature assets in Brazil.