CORPORATE PRESENTATION AUGUST 2018 DISCLAIMER This presentation - PowerPoint PPT Presentation

CORPORATE PRESENTATION AUGUST 2018

DISCLAIMER This presentation contains forward-looking statements. All statements other than statements of historical fact contained in this presentation are forward-looking statements, including, without limitation, statements regarding our drilling and seismic plans, operating costs, acquisition 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 presentation 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 PetroRio may not be able to finance; cost overruns and delays; exposure to fluctuations in currency and commodity prices; political and economic conditions in 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 presentation are made as of the date of this presentation. Except as required by applicable securities laws, we do not undertake to update such forward- looking statements.

GROUP OVERVIEW Our strategy and results

EXECUTIVE SUMMARY One of the largest independent oil producers in Brazil Financial Highlights 1H17 1H18 • Well positioned to attract capital (leverage potential; listed in BM&FBovespa) • Experienced technical team - qualification as an A-Operator granted by ANP Net Revenues BRL 230 million BRL 356 million • Successful track record in Polvo Field: can be replicated to new acquisitions. EBITDA BRL 66 million BRL 100 million • PetroRio seeks to generate value in producing fields via cost reduction and Net Income BRL 51 million BRL 73 million operational efficiency • Strong balance sheet with cash position of BRL 722 million (2Q18) Cash Position BRL 678 million BRL 722 million ASSETS Cash Position – BRL million FZA-M-254 FZA-M-539 Field Stake Production +39% 722 663 POLVO 100% ~ 9,600 bbl/d 571 522 460 Manati MANATI 10% ~ 3,200 boe/d FZA-M-254 100% Exploration Polvo FZA-M-539 100% Development 2014 2015 2016 2017 2Q18

COMPANY DRIVERS Growth Strategy • Growth through acquisition of producing assets • Development of current assets All About People Cost Reduction • Meritocracy and Measures Accountability • Performance-based • Operational costs optimization compensation ✓ PROFIT ORIENTED • Lean G&A and G&G overhead • Only top performers ✓ SHAREHOLDER VALUE CREATION ✓ FINANCIAL DISCIPLINE Safety and High Operational Environment Efficiency • • World-class HSE Process revision and enhancement practices • Quick response to daily events

PETRORIO BUSINESS MODEL 1 2 3 COST REDUCTION ENHANCED OIL RECOVERY FOCUS • Meticulous reservoir management, • Assets seen as “small” by • Increase in operational efficiency Majors receive special from 80% to 97.4% greater stability and lower decline rates, extending lifespan of the field attention from PetroRio • Significant cost reduction (60%) • Operating leverage potential : compared to previous Operator Estimated reserves – million bbl Cost advantages and savings opportunities with new assets BP 2013 • Lean overhead D&M 2015 5x Polvo’s Lifting Costs – USD million D&M 2016 - 60% 240 Polvo’s estimated decommissioning 2016 BP 2013 95 2020 D&M 2015 2022 D&M 2017 2013 (BP) 2017 (PetroRio)

2Q18 HIGHLIGHTS Net Revenue of R$ 239 million, highest quarterly Revenue in PetroRio's history Highest Operating Results in the Company's history: R$ 118.4 million, up 132% over 2Q17 EBITDA of R$ 85.8 million for the quarter, up 30% over 2Q17 Net Income of R$ 70.6 million, 50% above 2Q17 Lifting Cost in Polvo of US$ 34.5/bbl in the quarter (US$ 27.8 by June 2018)

POLVO FIELD

9,600 BARRELS PER DAY 98.8% OPERATIONAL EFFICIENCY 3 NEW WELLS DRILLING CAMPAIGN 2018

POLVO FIELD 100% PETRORIO – OVERVIEW Campos Basin Polvo Field • Close to Cabo Frio City • Area: 134.24 km² • Shallow-water: 92 - 180m Exports destinations Reserves (2017) POLVO OIL (million bbl) 10.8 Proved (1P) 12.9 Proved + Probable (2P) 17.0 Proved + Probable + Possible (3P) Source: D&M certification report – December 2017

POLVO PRODUCTION Average Daily Production and Operational Efficiency 99.4% 98.6% 98.3% 95.6% 10.000 93.0% 100% 10,000 8.000 80% 8,000 67.0% 6.000 6,000 60% 9,176 8,129 4,000 4.000 40% 7,167 6,927 6,484 5,124 2,000 2.000 20% 0 0% jan-18 feb-18 mar-18 abr-18 mai-18 jun-18 apr-18 may -18 Average Daily Production (bbl/d) Operational Efficiency

POLVO FIELD: LIFTING COST VS. BRENT Brent x Lifting Cost* (USD/bbl) Resilient performance and actively responding to market environment 75.0 80 67.2 61.5 54.6 60 52.2 51.1 50.8 47.0 47.0 44.2 35.2 40.3 40 34.5 35.7 32.0 31.3 31.2 30.6 28.2 28.4 20 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 Average Brent Price Lifting Cost *100% of the field (without depreciation, amortization and royalties)

REVITALIZATION – (2016) ENHANCED OIL RECOVERY Estimated oil production curve (million bbl) 2.8 2.4 2.2 2.2 2 1.7 1.6 1.6 1.4 1.3 1.2 1.1 1 2015 2016 2017 2018 2019 2020 2021 Previous operator DeGolyer and MacNaughton 2015 DeGolyer and MacNaughton 2016 Expected production (2016-2021) grew by five times Results ✓ New, high-quality reservoirs , mainly sandstone, were 5,0x successfully accessed 13.0 ✓ Production gains of 20% vs. previous estimate of 7.5kbbl/d 12.6 5.0x ✓ Potential to extend field’s lifespan in more than a year and 8.3 proven reserves’ estimate in more than 1 million bbl 2.8 ✓ Estimated savings of ~USD 1 million as a result of lower diesel consumption driven by the higher gas production BP estimates 1P developed D&M 2015 D&M 2016 ✓ Total investment of USD 17.9 million reserves

REVITALIZATION – (2018) DRILLING CAMPAIGN POL – H Production Areas Drilling: April/May km Distance: 3.6km Carbonate POL – Z Drilling: June/July Distance: 5.3km Sandstone POL – M New wells Key Drilling: August/September No Production Producing Decomissioned Distance: 5.5km Production fields Injector In Progress POLVO-A Reach Producer Sanstone Bathymetry Others/ n.a. CAPEX estimated between US$ 50-60 MM

MANATI NATURAL GAS FIELD

Stable and predictable cash flow from ‘take -or- pay’ contract with Petrobras Project EBITDA margin: 70%

MANATI FIELD Natural Gas producing field • Located in the Camamu-Almada basin, 65km from Salvador, BAHIA • Proved reserves of 0.9 billion m³ (net to Petrorio’s 10% stake)* • Additional upsides with the development of Camarão Norte Manati - Gas production (m³ /d) (Related to PetroRio’s 10% W.I.) Manati - Gas production (m3) Volume (Related to PetroRio's 10% W.I.) 700.000 700,000 2Q18: 40.7MM m³ 1Q18: 38.5MM m³ 2Q18: 40.7MM m³ 600,000 1Q18: 38.5MM m³ 600.000 500,000 500.000 400.000 400,000 300.000 300,000 200.000 200,000 100,000 100.000 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Total Production Daily Capacity (m³) * D&M report December 31, 2016