09/26/2018 | Press release | Distributed by Public on 09/26/2018 06:23
Dommo Energia S.A.
CNPJ/MF: 08.926.302/0001-05 Publicly-held Company - B3: DMMO3
- BS-4 Block: Phase 1 Decision on the Arbitration Procedure established by Dommo Energia against QGEP
and Barra -
Rio de Janeiro, September 26th, 2018 - Dommo Energia S.A. ("Dommo Energia" or "Company") (B3:
DMMO3; OTC: DMMOY), in accordance with article 157, paragraph 4th of Brazilian Corporate Law No. 6,406/76 and CVM Rule No. 358/02, informs the shareholders and general market that took notice yesterday of the arbitration award issued by the Arbitration Court ("Decision") in relation to the first phase of the arbitration managed by the London Court of International Arbitration - LCIA, established by Dommo Energia against Queiroz Galvão Exploração e Produção S.A. ("QGEP") and Barra Energia do Brasil Petróleo e Gás Ltda. ("Barra"), according to material fact disclosed on October 23rd, 2017.
The aforementioned Decision declares, among other issues, that the notification issued by Barra on October 17th, 2017, in order to exercise, without offer of payment, the option to demand the exclusion of the Company from the Joint Operating Agreement - JOA, the Consortium agreement and the Concession agreement, all related to the BS-4 Block - as disclosed in the material fact on October 20th, 2017 -, was valid at the time it was issued, and shall become effective since the date of its receipt by the Company, on October 11th, 2017, without prejudice to the annulment possibility of this exclusion in a subsequent step of the arbitration proceeding, with the production of evidence that support such annulment. The first phase of the arbitration did not include the production of evidence, having the Decision foreseen that, in new phase(s) of the arbitration, through the fact-finding exercise, Dommo Energia may still plead the exclusion and the compulsory transference annulment of its stake in BS-4 Block and/or indemnity for losses and damages against QGEP and Barra.
The Decision is still subject to eventual clarification requests from the involved parties, which may change its content.
The effectiveness and the consequent enforceability of the Decision in national territory are subject to the homologation proceedings of foreign sentence, entitled to the Brazilian Superior Court (Superior Tribunal de Justiça - STJ), under the terms of the Brazilian Federal Constitution and the prevailing legislation.
Rio de Janeiro, September 26th, 2018.
Eduardo Yuji Tsuji
Chief Financial Officer and Chief Investor Relations Officer
Dommo Energia S.A.
This document contains Company-related statements and information that reflect the current vision and/or expectations the Company and its management have regarding its business plan. These include, among others, all forward-looking statements that involve forecasts and projections, indicate or imply results, performance or future achievements, and may contain words such as "believe," "foresee," "expect," "consider," "is likely to result in" or other words or expressions of similar meaning. Such statements are subject to a series of expressive risks, uncertainty and premises. Please be advised that several important factors can cause the actual results to diverge materially from the plans, objectives, expectations, estimations, and intentions expressed in this document. In no event shall the Company or the members of its board, directors, assigns or employees be liable to any third party (including investors) for investment decisions or acts or business carried out based on the information and statements that appear in this presentation, or for indirect damage, lost profit or related issues. The Company does not intend to provide to potential shareholders with a revision of the statements or an analysis of the differences between the statements and the actual results. Each investor must conduct and rely on its own evaluation, including of the associated risks, in making an investment decision.
Investors: Eduardo Tsuji Marcio Assis Victor Rosenzvaig Cinthya Coutinho[email protected]+55 21 2196-4545
Cibele Flores[email protected]+55 21 2196-4505