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PBR » Topics » Our ability to achieve our long-term growth objectives depends on our ability to discover additional reserves and successfully develop them, and failure to do so could prevent us from achieving our long-term goals for growth in production.This excerpt taken from the PBR 20-F filed May 22, 2009. Our ability to
achieve our long-term growth objectives depends on our ability
to discover additional reserves and successfully develop them,
and failure to do so could prevent us from achieving our
long-term goals for growth in production.
Our ability to achieve our long-term growth objectives,
including those defined in our
2009-2013
Business Plan, is highly dependent upon our ability to obtain
new concessions through new bidding rounds and discover
additional reserves, as well as to successfully develop our
existing reserves. We will need to make substantial investments
to achieve the growth targets set forth in our
2009-2013
Business Plan and we cannot assure you we will be able to raise
the required capital.
Further, our competitive advantage in bidding rounds for new
concessions in Brazil has diminished over the years as a result
of the increased competition in the oil and gas sector in
Brazil. In addition, our exploration activities expose us to the
inherent risks of drilling, including the risk that we will not
discover commercially productive crude oil or natural gas
reserves. The costs of drilling wells are often uncertain, and
numerous factors beyond our control (such as unexpected drilling
conditions, equipment failures or accidents, and shortages or
delays in the availability of drilling rigs and the delivery of
equipment) may cause drilling operations to be curtailed,
delayed or cancelled. These risks are heightened when we drill
in deep and ultra-deep water. Deep and ultra-deepwater drilling
represented approximately 35% of the exploratory wells we
drilled in 2008.
Table of Contents
Unless we conduct successful exploration and development
activities or acquire properties containing proved reserves, or
both, and are able to raise the necessary capital to fund these
activities, our proved reserves will decline as reserves are
extracted. If we fail to gain access to additional reserves we
may not achieve our goals for production growth for 2009 through
2013 and our results of operations and financial condition may
be adversely affected.
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