Material Fact - HRT and Rosneft sign final agreements on the assignment of a 6% working interest in the Solimões blocks and the sale of four drilling rigs to Rosneft, which shall be the operator with 51%

RIO DE JANEIRO, Brazil, March 24, 2014 /CNW/ - HRT Participações em Petróleo S.A. (the "Company" or "HRT") (BM&FBOVESPA: HRTP3, TSX-V: HRP) hereby informs that its subsidiaries HRT O&G Exploração e Produção de Petróleo Ltda. ("HRT O&G") and HRT Netherlands B.V. ("HRT BV"), and Rosneft Oil Company's subsidiaries, Rosneft Brasil E&P Ltda. ("Rosneft Brasil") and Rosneft Latin America S.A.R.L ("Rosneft LatAm"), in continuation to the preliminary agreement disclosed to the market on November 22^nd, 2013, have signed, on March 22^nd 2014, the final agreements, regarding HRT O&G's sale of 6% working interest, which will hold 49%, and the transfer of operatorship in their Joint Venture in the Solimões Sedimentary Basin to Rosneft Brasil, holding 51%. As previously released, this transaction also encompasses the sale of four heli-transportable drilling rigs by HRT BV to Rosneft LatAm.

The relevant transaction amounts to USD 96 million. From that amount, USD 54 million were received during the second half of 2013, other USD 18 million will be received by the end of the first quarter of 2014, and the remaining amount of USD 24 million will be received when transaction is completed upon ANP approval in mid-2014. The total amount refers to the sale of 6% working interest, the transfer of operatorship in their Joint Venture in the Solimões Sedimentary Basin to Rosneft, the sale of four heli-transportable drilling rigs and the settlement of the outstanding cash calls owed by Rosneft until October 2013. Rosneft will also provide HRT a loan facility up to USD 40 million to finance HRT investments in Solimões for a period of 12 months from the closing date. Rosneft Brasil is fully in compliance with its Joint Operating Agreement (JOA) obligations.

The transition process between the teams of both companies has already begun. HRT and Rosneft Brasil have been working on the transition of their teams, including the transfer of HRT personnel to Rosneft Brasil and operations, so that the final transfer occurs in a continuous and integrated manner, and observing safety, performance and quality standards.

The signing of the final agreements replaces the preliminary agreement as of November 22^nd, 2013. Completion of the purchase and sale agreement between HRT O&G and Rosneft Brasil of the 6% working interest (Solimões Blocks) will be contingent upon the fulfilment of certain contractual conditions, including the final approval by the National Agency of Petroleum, Natural Gas and Biofuels (ANP).

"Signing of these agreements means excellent news for both companies. Restatement of this partnership brings HRT the confirmation of our partner's confidence, and also ours, in the potential for development of the Solimões Basin. We own a large knowledge of Solimões and we believe in the potential for exploration and future development", highlighted Milton Franke, CEO of HRT.

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About HRT
HRT Participações holds one of the largest independent oil and gas exploration and production companies in Brazil. The HRT Group comprises six main subsidiaries: IPEX (Integrated Petroleum Expertise Company Serviços em Petróleo Ltda.), HRT O&G Exploração e Produção de Petróleo Ltda., HRT Netherlands B.V., HRT África Petróleo S.A., HRT América Inc. and HRT Canada Inc.. The Company retains a 55% interest in 19 exploratory blocks in the Solimões Basin and 60% of interest in The Polvo Field, located in the southern portion of the Campos Basin. HRT also operates ten exploratory blocks off the Namibian coast: eight blocks in the Orange Sub-basin and two blocks in the Walvis Sub-basin. HRT's team includes PHDs and masters in geochemistry, geophysics, biology and engineering, most of them former employees of Petrobras and ANP (Brazil petroleum agency). HRT is committed to minimizing any possible environmental impacts in the sites where it acts. Our commitment to the local communities is towards health conditions, safety and quality of life. For more information, please visit the Company's website: www.hrt.com.br/ir

Disclaimer
This news release contains forward-looking statements. All statements other than statements of historical fact contained in this news release are forward-looking statements, including, without limitation, statements regarding our drilling and seismic plans, operating costs, acquisitions of equipment, expectations of finding oil, the quality of oil we expect to produce and our other plans and objectives. Readers can identify many of these statements by looking for words such as "expects", "believe", "hope" and "will" and similar words or the negative thereof. Although management believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. By their nature, forward-looking statements require us to make assumptions and, accordingly, forward-looking statements are subject to inherent risks and uncertainties. We caution readers of this news release not to place undue reliance on our forward-looking statements because a number of factors may cause actual future circumstances, results, conditions, actions or events to differ materially from the plans, expectations, estimates or intentions expressed in the forward-looking statements and the assumptions underlying the forward-looking statements.

The following risk factors could affect our operations: the contingent resource and prospective resource evaluation reports involving a significant degree of uncertainty and being based on projections that may not prove to be accurate; inherent risks to the exploration and production of oil and natural gas; limited operating history as an oil and natural gas exploration and production company; drilling and other operational hazards; breakdown or failure of equipment or processes; contractor or operator errors; non-performance by third party contractors; labour disputes, disruptions or declines in productivity; increases in materials or labour costs; inability to attract sufficient labour; requirements for significant capital investment and maintenance expenses which HRT may not be able to finance; cost overruns and delays; exposure to fluctuations in currency and commodity prices; political and economic conditions in Namibia and Brazil; complex laws that can affect the cost, manner or feasibility of doing business; environmental, safety and health regulation which may become stricter in the future and lead to an increase in liabilities and capital expenditures, including indemnity and penalties for environmental damage; early termination, non-renewal and other similar provisions in concession contracts; and competition. We caution that this list of factors is not exhaustive and that, when relying on forward-looking statements to make decisions, investors and others should also carefully consider other uncertainties and potential events. The forward-looking statements herein are made based on the assumption that our plans and operations will not be affected by such risks, but that, if our plans and operations are affected by such risks, the forward-looking statements may become inaccurate.

The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement. The forward-looking statements included in this news release are made as of the date of this news release. Except as required by applicable securities laws, we do not undertake to update such forward-looking statements.

SOURCE: HRT Participações em Petróleo S.A.

CONTACT INFORMATION:

Ricardo Bottas Dourado - CFO and Investor Relations Officer
Sandra Calcado - Investor Relations Manager
Tainah Costa - Investor Relations Senior Analyst

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