3R Petroleum Óleo e Gás S A : Earnings Release 3Q22

EARNINGS RELEASE | 3Q22

Earnings | 3Q22

Rio de Janeiro, November 8, 2022 - 3R Petroleum Óleo e Gás S.A. ("3R" or "Company") (B3: RRRP3) hereby presents its results for the third quarter of 2022 ("3Q22"). Except as indicated otherwise, the financial and operating information described in this release is presented on a consolidated basis and in Brazilian Reais (R$), in accordance with International Financial Reporting Standards (IFRS).

Main Indicators

(in thousands of R$, except as indicated otherwise)	3Q22	3Q21	∆ Y/Y	2Q22	∆ Q/Q
Net Revenues	502,374	192,182	161.4%	399,624	25.7%
Adjusted EBITDA	192,640	104,928	83.6%	205,796	-6.4%
Adjusted EBITDA Margin	38.3%	54.6%	-16.3 p.p.	51.5%	-13.2 p.p.
Total Production¹ (boe/day)	16,088	6,659	141.6%	12,241	31.4%
Average Daily Production of oil (bbl/day)	9,229	5,688	62.3%	8,397	9.9%
Average Daily Production of gas (boe/day)	6,859	971	606.1%	3,844	78.5%
Average sale price for oil (US$/bbl)	88.4	67.7	30.7%	102.7	-13.9%
Average sale price for gas (US$/MMbtu)	8.6	3.2	171.3%	6.0	43.3%
Lifting Cost (US$/boe)	14.3	8.5	68.9%	12.7	12.5%
¹ 3R Working Interest

HIGHLIGHTS OF THIRD QUARTER AND POST REPORTING DATE EVENTS

Execution of Business Plan: Organic Growth and Mitigation of Risks

• Conclusion of funding for the Potiguar Cluster: US$ 1.0 bi contracted with a strong syndicate of banks;
• Issue of R$ 900 million in local debentures, resources for working capital and capex;
• Incorporation of 2 new assets to 3R's operations: Peroá and Fazenda Belém Clusters in August 2022;
• Six of nine assets already integrated: two closings expected for 4Q22, Pescada and Papa-Terra Clusters;
• Management elected for 2-year term of office, with focus on organic development of our proposition.

Development of a robust and diversified portfolio

• Addition of reserves and production based on rise in working interest in subsidiary 3R Offshore;
• Portfolio of 534 million boe in 2P certified reserves, being 89% oil and 11% gas;
• 183 million boe or 34% in PDP reserves, reducing operational execution risk;
• First onshore drilling rig contracted and in phase of mobilization in Rio Grande do Norte (RN);
• Pro forma portfolio1 posted production of 43.5 thousand boe in September/22, driven by the operational re-start-upof the Papa Terra Cluster;
• Average production of 16.1 thousand boe/d in 3Q22, +141.6% Y/Y;

1 Includes Company´s interest in assets in operational transition phase (65% Pescada, 53.13% Papa Terra and 100% Potiguar).

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EARNINGS RELEASE | 3Q22

• Huge increase in gas production, +606.1% Y/Y, resulting from the performance of the Rio Ventura Cluster and the integration of the Peroá Cluster.

Solid Financial Results in 3Q22

• Record net revenues of R$ 502.4 million, growth of 161.4% Y/Y;
• Adjusted EBITDA worked out to R$ 192.6 million, a rise of 83.6% Y/Y;
• Adjusted EBITDA Margin was 38.3%, even considering expenses related to assets in the operational transition phase;
• Net income of R$ 469.8 million, supported by the operational and financial results;
• Capex of US$ 12.3 million, capture of low hanging fruits opportunities and preparation for drilling campaigns;
• Lifting Cost of US$ 14.3/boe, competitive level since the beginning of 3R's activities.

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EARNINGS RELEASE | 3Q22

Message from Management

3R has delivered yet another set of solid earnings in 3Q22, backed by the operational resilience and the attainment of strategic and financial milestones that it's fundamental to driving the Company´s projected short- and medium-term growth. In one more quarter marked by challenging macroeconomic and geopolitical aspects all over the world, the oil and gas industry continues to outpace other industries owing to its healthy benchmark oil price and strong global demand for natural gas.

Added to this, the world is currently dealing with the impacts of the war in Eastern Europe, which draws even further attention to the O&G industry. With the recent opening-up phase of local industry, driven by Petrobras's divestiture program, the pre-salt layer projects and the rise of independent listed companies like 3R, Brazil has established itself as a natural destination for allocation of resources and exposition to the O&G industry.

In such a context, 3R stands out after an efficient campaign in terms of building up its portfolio and vastly expanding its earnings. In 3Q22, the Company hit the record mark of net revenues of more than R$500 million, expanding its accumulated revenues for 2022 to R$ 1.28 billion. So far, accumulated revenues in 2022 are

10.7 and 2.7 times greater than those accrued in the same periods of 2020 and 2021, respectively, and shows the magnitude of 3R's growth in just 24 months. It should further be stressed that the results for 3Q22 further still reflect approximately 43% of the portfolio contracted by 3R. In other words, this growth profile should continue to hold in the forthcoming quarters, which will be impacted not just by the expanded production of the portfolio already operated, but also by the start-up of operations at the main assets acquired by the Company: Potiguar and Papa Terra.

The results in 3Q22 were supported by a resilient operation that in the month of September achieved record average daily production of 16 thousand barrels of oil equivalent (boe/d) and posted an EBITDA margin of close to 50% in terms of cumulative figures for the year 2022 so far, even with the Company going through its most intensive phase of integration of assets, with new operations starting up in the quarter, and intensifying operational mobilization for beginning operations at the Papa Terra and Potiguar Clusters.

3Q22 was further marked by the signing of the financial instruments required to guarantee conclusion of the acquisition of the Potiguar Cluster and finance the working capital needed to start up the operations in transition. After three moves involving equity funding in the Brazilian capital market and debt structuring, 3R today boasts a capital structure that is both concluded and anchored in flexible instruments and permits prepayment over a short and mid-term horizon. The Company will continue striving for the ongoing optimization of its current structure, in view of the growth projected for the coming 24 months and the resulting rise in production capacity, as well as revenue and cash generation, in this period ahead.

As regards operational aspects, 3Q22 was noteworthy for the commencement of operations at the Fazenda Belém and Peroá. Since the latter involves the first offshore operation, it should be highlighted that the beginning of operation at Peroá, with a highly successful transition and without complications for 3R on the part of the former operator, in 3Q22 Peroá already accounted for 11% of net revenues and proved to be a strong cash generator by posting an EBITDA margin close to 70% and lifting cost of just US$ 5. This project will further count on opportunities for enhanced operational efficiency and expansion of productivity in the forthcoming years, chiefly with the conclusion of the tie-back of the Malombe field, which may represent a rise in daily production of up from 2.5MM cubic meters of gas.

Further regarding operational aspects, 3R intensified this quarter its initiatives for optimization of the infrastructure of the clusters it operates, with the main emphasis being on the Macau and Recôncavo Clusters. Investments are being made for (i) expansion of storage capacity, (ii) replacement and repair of pipelines,

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EARNINGS RELEASE | 3Q22

1. expansion of distribution capacity, and (iv) modernization of measurement and calibration equipment, to guarantee the integrity, safety, and optimization of all the infrastructure supporting the operation. Such initiative should generate short-term impacts in the results of the operation, but it will be fundamental to support in a safe and sustainable manner the healthy growth in production projected for the years ahead.

In the strategic area, 3R expanded its equity interest from 70% to 85% of the capital stock of 3R Offshore, with the remaining 15% portion being held by DBO. Such a move happens at a timely moment where conclusion of the acquisition of Papa Terra is getting close and Peroá has proven as a strong cash generator, since the beginning of operations by Company. In terms of assets, 3R now holds 85% of the Peroá Cluster and 53.13% of the Papa Terra Cluster. From the reserve standpoint, 3R now boasts 534 million barrels of oil equivalent in 2P reserves, one of the largest portfolios of reserves among all the independent O&G industry companies in Latin America.

Just two years after its IPO, 3R is justifiably proud to be part of an industry that is undergoing an extraordinary moment in Brazil and along this path has attracted a diverse and balanced domestic and international shareholder base that has supported its investment proposition ever since the beginning. 3R remains convinced that it presents a highly competitive proposition and a strong strategic differential, supported by a diversified and integrated portfolio, with competitive breakeven point, capex flexibility and, with this, resilience to macroeconomic fluctuations. Finally, the Company recognizes the dedication and delivery of the entire 3R team in yet another quarter of tremendous results and reinforces its commitment to become a Latin American O&G industry benchmark.

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