“Faced with such a challenging and unprecedented quarter for oil producers in the world, PetroRio had the opportunity to establish itself among the most resilient in the sector. Our business model was tested again, as the price of Brent remained almost two months below $ 30, between March and May 2020.

During this period of adversity, our team responded quickly, maintaining a focus on health, safety, in addition to (i) readjusting operating costs and preserving liquidity, and (ii) capturing synergies with the incorporation of Frade and Tubarão Martelo. The combination of these fronts resulted in a reduction in the Company's total lifting cost to US $ 13.7, representing an improvement of 43% vs the previous year and 21% vs 1Q20. We reiterate that the continuous review and reduction of the lifting cost is the best and most important protection strategy against Brent's price volatility, and will continue to be our pillar for the Company's current and future projects.

In addition, in early 2020, the Company contracted hedges for 70% of its cargo in the semester. As a result, the effective gross selling price in the second quarter, when hedging is included, reached US $ 53.1 per barrel.

Such initiatives to reduce the Company's lifting cost, added to the result of hedge operations, helped PetroRio to remain liquid and healthy amid the impact of Covid-19 on the global price of oil and to report a reduction in leverage (Debt Net / Ebitda) in the second quarter of 2020.

During the quarter, we were also successful in renegotiating Vendor Finance with Chevron, today the Company's largest debt. The new amortization schedule will keep us more capitalized for 2020/2021.

Finally, despite these important achievements and the excellent operating result, net income for the quarter was impacted by non-cash effects mainly related to exchange variation. As in previous periods, such adjustments did not impact the Company's cash, since revenues and cash are predominantly dollarized. ”

We are leaving even stronger in this period, excited for the coming months and very attentive to health, safety, efficiency and new business opportunities. We also take the opportunity to wish our employees, suppliers and business partners health and serenity. "