Central Resources, Inc. Oil Business in Rio

By Fiona Hurrell, Contributing Reporter

RIO DE JANEIRO, BRAZIL – Central Resources Inc, a Denver-based independent oil and gas production and operation company, has recently announced its acquisition of six “concessions” in Brazil. The Potiguar Basin, which lies on the border of Rio Grande do Norte and Ceara, provides the location for four of these concessions whilst the remaining two sit within the Espirito Santos Basin, much closer to Rio de Janeiro.

Senior Vice President of Central Resources Latin American division, Mr. Kurt Hoppe said: “Central is excited about the opportunity to begin its operations in Brazil. After almost two years of work we were finally successful in closing this transaction. For the people working in Rio, the acquisition begins a new chapter in their lives working in a new ownership environment.”

The company’s major expertise lies in secondary recovery methods and other operating techniques that enhance existing reserves of oil and gas through careful field management and use of the latest technologies. In the last decade, however, foreign opportunities have been the company’s main focus, resulting in an impressive range of resources in the US, Canada, Argentina, and now Brazil.

This latest acquisition comes as a result of Central Resources purchase of Koch Industries International B.V., which operates an oil and gas exploration and production business in Brazil through its subsidiary, Koch Petróleo do Brasil Ltda.

In the company press release, Central’s President and CEO Paul J. Zecchi said: “We are pleased to announce the completion of a significant acquisition and expansion of our South American operations into Brazil. The purchase of an existing Brazilian E & P company represents an excellent opportunity to add quality oil and natural gas assets in an area that has long been of interest to Central.”

Central Resources is scheduled to carry out an extensive development program in late 2011 and will examine the potential for exploratory drilling in two of the newly acquired fields. Mr. Hoppe expressed positive anticipation, stating: “Central has high hopes and expectations for its program, which should continue into 2012 and beyond. Our intent was to develop these properties and not just maintain the status quo.”

Brazil has long been recognized as a country rich in natural products such as oil and gas and is no stranger to large scale extraction or development. Since the discovery of oil in the Campos basin it has provided a foundation for many large and international companies such as Brazil’s own Petrobras, as well as Shell, Repsol, Statoil, Chevron and Esso/Exxon.

Now Central Resources Inc. adds their name to the list, along with a district office located in the city of Rio de Janeiro. Paul J. Zecchi believes now is the right time to enter the Brazilian oil market. “We see a natural fit between our expertise in secondary recovery and other onshore opportunities in Brazil. This complements our vision for growth in both the near and long term.”