Good morning, everyone. Thank you for waiting. I am Marcelo, and I am from the investor relations from PetroReconcavo. We have our Executive Directors, Marcelo Magalhães, Rafael Procaci da Cunha, also relationship with investors. And also João Vitor Moreira for New Business, and Virginia Ribeiro from RI. This video conference is being recorded, and it will be in the site of the company available. If you need simultaneous translation, please go to the icon called Interpretation in the bottom right of the screen. We are going to have a Q and A session. Please send your questions through the Q&A icon, and as soon as we call your name, you can ask the question live. We can activate your microphone. If you do not want to use the microphone, just write "without microphone" at the end of your question.
Any disclaimers that can be made during this presentation about all these subjects and information available to the company. Everything said by PetroReconcavo, this is not a guarantee and involves risks. The investors must understand that the general conditions of the industry and other operational factors can affect the results of the company, and they can be very different from what is said in the future. Now I will give the floor to Mr. Marcelo Magalhães for his initial remarks. Marcelo?
Thank you, Cruvinel. Good morning, everyone. Thank you for being here. Once again, we are reporting our results of the quarter, the second half of 2022. In general, we are extremely satisfied with the progress of what we are trying to do here.
In terms of our activities, we see an increase in the financial indicators, EBITDA, and revenues compared to the annual numbers, and we also see an increase in production as expected. Some very relevant points in the first quarter that continue to show our ability to do the business. Increased production, continuing perforation of the drilling of wells with a lot of productivity, and also very good results. Our continuous capacity of not only increasing the number of the drills, and also the number of activities. So we are increasing our vertical capacity of activity in terms of perforation or drilling. Some relevant aspects in the first quarter, the continuation of the regulatory process with ANP to obtain the concessions of our fields. If you remember, these are processes that were started a little after the acquisition of Riacho da Forquilha to about March of 2020.
In this quarter, we began to have the concession of the most relevant fields with integral constitution of the 27 years until 2052. In many cases, with royalty curves that are very pleasing to the company management because of the possibility of getting a reduction of royalties in these fields. Now, in terms of gas, we also have very interesting contracts for the company because of the interruptibility clause as in the case of BHS, or because of the pricing that we are able to get. All of this increases monetization of our production and definitely helps us to have the financial outcomes and operational numbers that we are disclosing to you here. Another very relevant fact was the first report on sustainability.
It gives us the issues of the company with regard to sustainability, and this has allowed us to go beyond and have clearer plans drawn for the company strategy with regard to this very relevant issue, and above all, in our business model. With regard to production of assets, we have had along this quarter an increase in production in both assets. Of course, there is a bigger focus on Bahia because of the acquisition of Miranga, because that is more recent, and it is still at its peak of the low-hanging fruit. This occurs in the first few months. As we are going to mention later on, there is an increase in Ativo Bahia of 10%, but we are going to get to 80% of increment in the production of Miranga since the takeover, which was in the middle of December of last year.
For us, it is very important, and it is above what we expected during the same period. Normally, we think of doubling the production in the first 24 months. In terms of gas, as it happens a little earlier, but I think we are really very satisfied with the results that are obtained in the field. Not only because of the relevance of the production of the company, but also it allows the company to be clearer in entering the gas market with all of the opportunities that this market brings to the country and to the world at this moment. We had a record of production in June. Beyond the increased production in the quarter, we are extremely satisfied with the production in June.
I think our production release has come out with even better data, and this reinforces something that is very important for us, which is a continuation of the delivery of results. I have already placed the previous results, and when you start coming out of the low-hanging fruit period, and Potiguar is actually getting into this phase, the view of production is less monthly, less daily, it is more quarterly, and the second quarter actually shows this. In the first two months, we had some difficulties, some bottlenecks, operational bottlenecks that are beginning to be solved, and they already allow us to see a very significant increase in June and July. This is normal. It is part of the process, and in a way, I would say that we have the expectation of going back to some bottlenecks.
Usually, these bottlenecks come because we are finding better results from what we expected, according to what we expected, and sometimes you have to wait a little bit to be able to fully monetize this production. Now, in Potiguar, and in the same kind of production behavior, we are in with another hydraulic equipment, so there is a greater capacity. This is extremely relevant because in Potiguar specifically, we have had exceptional results with fracturing in the tight gas areas, and this has helped us a lot to increase the production of the asset and also the production of gas. There is about 40 interventions in workover. This is also very significant in terms of results, and it comes from our capacity to integrate the different probes and having qualified people who can work with this equipment.
This has allowed us, our council, our Board, has allowed us to approve new investments so that we can increase our freight and our fleet. We can also increase our activity, and especially the results that we have been getting in these activities. The increase in the monetization of gas also helps a lot. Once again, I am going to allow myself to talk a lot about gas. I think in the current moment, the opportunity characteristics, the cost of development of the operation, and the level of monetization and pricing that we are reaching gas, especially in these more recent contracts, they lead us to a certain prioritization of gas. You are going to see the aspect in the production of gas. This has definitely overcome the production of oil. At this point, it definitely makes a lot of sense for the company.
Most of what I said before, the difficulty in monetization. This impacts April and May production. The capacity of production of the Sabiá complex, we are going to see this later on. It is an area where we have focused a lot of the perforation of the company. The results have come in line or a little above what we expected. As a result, we are depending more strongly on the facility projects so that we can improve our production. We drilled 10 wells. Seven are already producing in this quarter. The drilling of the wells has generated very interesting production results. We have plans to continue the drilling, intense drilling. We are also following up the perforation fleet. We are buying them for the company. This will be intensified over the next three quarters.
In the Bahia asset, as I said, there is a great focus in the Miranga asset. It is still fully working in terms of the low-hanging fruit. The results have been very good. We have shown the capacity of execution. That is the basis for the good outcomes. Today, we have four approach in Bahia, the Bahia asset. There are workover interventions. There is a certain balance. There is also increase in the gas production, once again, from these new contracts that definitely increase the characteristics of monetization of production of gas. We have increased once again, now with a new contract with Bahiagás. This contract has very interesting characteristics because it can be interrupted. We are dealing with a different situation and with the pricing, let us say gas, it is in line with what we are seeing in the most recent gas market.
We see the capacity of the company to maintain leadership, especially here in the northeast of Brazil, with that company that is generating more production, more contracts, and selling gas with the main regional distributors in the northeast. Now we are continuing to increase. We are working on that. We want to generate new contracts, and contracts that are more attractive all the time, commercially speaking, and with the expectation of having sustainable production. This new production, in general, is going to be channeled to these more attractive contracts, generating an average pricing and attractiveness in the gas product, which is much bigger if it is in the products that come from natural gas or not. This is in our press release about the swap contract with TG Catu.
Petrobras has told us that there is a difference in what it considers to be the revenue, what the revenue should be in the net swaps in this contract. We understand that the way that the company was recognizing the revenues, this is according to the contract instruments, but it is a complex subject. It results from a very significant agreement, and it's always good to remember that this agreement was managed at the end of last year, and it was very innovative. I think it was a pioneer contract, and this contract has allowed us, in the first half of the year, to be successful with the monetization of natural gas. It's also an agreement with our main partner, Petrobras, with several interfaces.
We're being very careful in saying the following: We believe that the attribution of the revenue is completely supported by the agreement basis that we have with Petrobras, and we're going to be very clear that our expectation is to fully comply with this agreement. But we're going to sit at the table in a reasonable manner with the different aspects that we have with Petrobras, and as soon as we have greater safety in terms of how this is going to happen, we're going to check with the market, with the transparency that we normally report and adopt in these conditions. We're being very conservative at this point. We recognize the revenue, and this has a great impact in terms of the results of the quarter, and it was definitely higher than our expectations.
There's an impact, there's a reduction in the profitability of the company, and the revenue is a little below what we expected, but it's better for us to be very calm, to bring this over to the table and make it very clear before it becomes a bigger problem. This will be naturally solved in the near future from now on because we are going to be going from the swap agreement to a gas processing agreement, as we do in UPGN Guamaré, and definitely this is going to become a lot clearer. Now I'm going to pass on to our CFO, Rafael Cunha, who's going to talk about the financial costs of the quarter. Thank you.
Thank you, Marcelo. Good afternoon, everyone. This first slide shows the evolution of our production cost per barrel of oil. It was $13.80.
It was a 3% increase with regard to the first quarter of 2022. Half of this was the exchange effect during this period. The other half I'm going to explain right after this in greater detail, so we have this part. Now, it also reflects a little bit of the continuing of production and the price. We usually reactivate the production in high production wells, and naturally, it's a little more expensive to produce. It's not very interesting to stop producing when the price is lower. We have a few takeovers from Petrobras. When you take on the activity in the field, especially in Miranga, the production was declining, several drills were not being processed, and our capacity of compression, and it was really very reduced with regard to its potential.
Unfortunately, it happens with these wells, and when you assume the operation, you start reactivating wells and reactivating and using all of the compression capacity. Definitely there is a certain amount that has to be given into maintenance, and this impacts the costs in the first six months to one year of operation of these assets. We have seen this, especially in the case of Miranga right now. Finally, we have obviously, because of the industry and around the world, we have had inflation pressure, especially in the lines of services and materials, and this has been happening. There is the end of the yearly contracts that have readjustments, and this has been very controlled over here. Next, please. These are the details of our costs and expenses in reais. Taking out the foreign exchange effect a little bit.
We have some seasonal points with regard to this quarter compared to the first quarter. We have BRL 3.5 million , more or less. Over here in the environmental area, we also had higher prices compared to the first quarter. In terms of people, we have been increasing and buying additional equipment. Once again, when this happens, we bring people for training and for one or two months before we start the operation. There is a certain cost that you have without any benefit of about two months. In the personnel part, there are also the corporations. We have an internal area of M&A, and this is a new scenario. It is not only in terms of Petrobras, and we have developed an internal area of commercialization and natural gas, and this is also reflected over here.
When we talk about services and materials, that is where I would put the inflation because of the prices. Besides that, there is a certain stability even in terms of electrical energy. This is picking up something from the free market, and we have decreasing costs because of this. Next, please. When we talk about revenues, I would highlight the revenues in terms of oil, especially from Potiguar. There was increase in the production and there was a gain there, but it was sort of taken over by the hedge losses. Also the revenues from oil suffered the effect of devaluation of the foreign exchange during this period, that affects the profitability.
I would also, Marcelo has already talked about this, but the revenues from gas that has followed up the growth, but this growth could have been bigger if it were not the issue of the gas swap that Marcelo talked about. That was about BRL 53 million . Our net revenues, if it were not for that, would have been BRL 53 million bigger than what is reported here. We decided to not report it at this moment, these BRL 53 million . Next, please. Over here, the summary of our DRE. We talked about the net revenues, the costs and expenses, and I would highlight the pricing depreciation, amortization, and depletion. During this period, we had BRL 300 million in CapEx for the company, and there was increased production, but we amortized most of our assets, and this is according to the units produced.
When production goes up, depletion also goes up. The net results were affected by the devaluation of the dollar. It generated a loss during this period because of the appreciation of the dollar, that since we have assets to pay from Petrobras in dollars, this impacts the period. But inside the six months, it is still $131 million, and in the accumulated part, $81 million. A little bit about the hedge. We have already mentioned this in the previous quarter, so we did not want to add new hedges. We are suffering a little bit with agreements that we had in the past, but this amount of open agreements has reduced. We had about 55 billion in hedges, and currently we have 3.8 million barrels with an average price that you see over here. Next, please. This is just a graphic image of the end of the contracts.
This is per quarter. Currently, if I get what this represents, it is more or less 5,000 bbl for 2022. It is 5,458 bbl of oil per day of hedged production. Comparing to our production in the second quarter, it is about 27% of the average production in O&G, and it is about 44% of the average production of oil. We have been achieving our targets and production has been growing, and the proportion of the oil production that is hedged has been reducing. With the safety on our side and the participation of gas that has been growing quite a bit, revenues have been growing on this side, and naturally there is a diversification of the revenues, and it is like a natural hedge. That is what I am going to call it, and it is according to our need to have hedges. Next, please.
In the cash flow statement, the operational results, we have talked about that. I am going to highlight that we benefited in this quarter. I will say it in a different way. In the first quarter of 2022, we were penalized in the evaluation of assets and because of the initial triggering of Miranga and the growth in the price of oil, so accounts receivable was a little stronger. In 2022, it became normal, so this is already passive, and the cash flow for the operational side is very close or even a little higher than the EBITDA of this period. There was normalization of the operational cash flow.
In terms of CapEx, I already talked about our investment and the growth of BRL 317 million , and also in line, it was investments in the drilling of wells and workovers and facilities projects, and also our fleet of probes, especially the workover and also the fracturing equipment. The financial statements, this is the application of the investment activities, and this is what is going to appear in the cash, in the financial cash flow. Next, please. We got about BRL 1 billion in the offer that we made in June. We paid the dividends, BRL 40 million approximately, so reinforcing our cash position. Next, please. This is just a graphic representation. We have net cash, which is $330 million approximately. Our bank debt on the 30th of June was $111 million, so we have amortization and it has gone down now below $100 million.
We still have accounts payable from Petrobras from previous acquisitions, Miranga, Riacho da Forquilha, and Remanso of about $220 million. This shows the distribution throughout the year, especially Miranga, and most of the payments have been distributed in three years, so definitely we are going to be very comfortable with our current cash flow. Next, please. Back to Marcelo to talk a little about ESG.
Thank you, Rafael. As I said before, in this quarter, we also had the first report about sustainability. In the first report, maybe you go through a more diagnostic part. It is not really action. It is very important to understand how we can be more effective in terms of sustainability. The company has clearly taken very important decisions with regard to diversity and equity and inclusion.
We are paying attention to this, and also the region we are operating in, because there is a lot of diversity in the contribution of our employees. In the sustainability report, we are already starting the second one, and it is an important thing to do the inventory of gas and how we are going to work with this issue. The company sees that the main vector of its action in ESG in the area it works in the northeast of Brazil, it is basically in the social area. I am repeating this together with some people in the industry. We prefer to use the ESG abbreviation. We put these social issues as a priority. The company has a long path of social programs. This is done in partnership with ABC Brasil This is specialized in providing effectiveness to the resources applied in these projects. Here in Bahia, we have Ciranda Viva .
In Rio Grande do Norte, we have Viva Sabiá. In education and exactly in the use of water, where we are implementing cleaning equipment and water equipment to make it possible to drink in the area of Mossoró and to improve the capacity of better use of water and soil. We really try to identify, and ABC helps us to find the real need of the populations that live around our operations. On the other side, how the company can effectively become more effective in the development of projects that make an impact on the needs. This is very customized according to the different places that we work in. Our headquarters, as you know, is in Mata de São João here in Bahia, and we have the honor of dividing this municipality, well, one of the most beautiful parts of the Brazilian coast.
We also have the Tamar project, which is a partnership that we are working on, recycling of garbage and education of the people, and we are taking children to visit the Tamar project, and many times you see children that live very near to the sea, but it is the first time they actually see the ocean. This has adapted to our characteristics over here. It is an industry that is expanding quite a bit, especially in the services area, after a very long period of low investment from the previous operator. We are investing in the education of the professionals, and definitely we are proud of being efficient and effective, and there is a great impact in the future development of our activities.
We made a partnership with SENAI, and it's a great team that we have here in Bahia and Rio do Norte. We are training young people in this area of working with probes, and we're going to have more people in the northeast for this. The next steps, I would say that it is something that we have already done over the last three years. We're able to increase our operational capacity. We have human resources, trained people, a lot of logistics. We are importing many things, and we are increasing our capacity for our activities. All of this is for us to continually accelerate our investment program, and this is what is going to provide sustainability or an increase in our production in all of the wells that we work in today, that we operate today.
In the gas area, we had expressive results, and I think this is only beginning, as Rafael said. We have a sales team, a marketing team that we built. They're very strong so that we can have more information and so that we can improve the monetization of the gas production that has been growing. Finally, we also had a meeting of our Board with the management in this quarter. We started discussing it in a clear manner, the positioning of the company in the market, the growth in M&A, besides the disinvestment program. Petrobras as well, we're also structuring in the area for us to be able to identify opportunities and generate our business.
Just to conclude, we still think that since the company that presented the best proposal, having been selected as the preferred bidder by Petrobras, at some point, we're going to go back to the negotiations and sign something in the Polo Bahia. There's going to be a lot more growth with the consolidation of these new concessions and all of the development that we have for them, everything that is possible. We're working very strongly with the best legal aid possible, where we provide support to Petrobras, legally speaking. They have still suspended the negotiations in Polo Bahia, and we're very optimistic. We hope this will be solved. We're also clear, and we trust the Brazilian system, and we believe that this is going to prevail. Thank you very much. We're going to open up for questions and answers now.
Thank you, Marcelo. Let's start with Monique Greco from Itaú.
Hi there. Good morning. Thank you for the questions. Can I ask two questions? With regard to the waivers that you got this year for the new hedges. It's more for Rafael. Is there a chance of the company celebrating new hedges, not only the hedges that you showed, for us to be able to have some visibility over the next few months? A second question is, if Marcelo can talk a little bit about this. It's about the swap in Catu. It's a celebration of a new processing contract with Petrobras that was going to be done. We observed this. My question is, what can we expect in terms of upside in the selling of these liquids when we talk about the acquisition of Bahia Terra and BGN? What changes in this sale?
What can we expect in terms of upsides with the acquisition of Polo Bahia Terra? Thank you.
Would you like me to start, Marcelo?
Yeah, go ahead, and then I'll pass it on to João. He's with us, and he's going to talk about gas.
Okay, so with regard to the hedge, every net situation in the company for the current portfolio of assets the company has, we don't see any need, and we don't have the intention of making new oil hedges. We see the addition of oil, and it's connected to the acquisition of new assets and relevant investments. If you have negotiations, and if we sign the acquisition of this new pole, then we're going to have a new program of hedges, and this has given us financial safety, considering the acquisition of the pole.
In our current portfolio, we don't see the need to add new hedge contacts.
Good morning, Monique. Good morning, everyone. With regard to the swap agreement and the possibilities of monetization, as soon as we solve this swap that is in a sequence. So we signed this in a transitory manner, and we've been negotiating with Petrobras to have something definite. It's a tolling system where we're going to process natural gas, we're going to pay an amount to Petrobras, and then we're going to sell our natural gas. This solves the liquid for the future because I'm going to sell my own liquids, and I'm not going to need any more credit. Then we open up a series of possibilities for us to monetize freely this condensed natural gas. The UTG Catu currently, it does not fractionate the liquids as we do in Guamaré.
So you don't have LGP 5C+, which is a possibility of additional revenues. It's a fractioning unit. It's actually another part we can do the fractionation of the gas, and we can sell C5+. But we would be able to sell it freely, what we call C3+, which is condensed natural gas, and we could change the flow where it is sold by Petrobras. This is foreseen in our contracts, and we have evaluated all of these possibilities. Possibly this is going to be done in a series, and the selling of C3+, and then another fractioning unit later on. There are price benchmarks, but Acelen is a player in the region, and that sells this liquid. According to this system, it reports to the market that it sells this at a Brent price. So it's one of the references and one of the possibilities for monetization.
João, I just wanted to know, Acelen sells to the industry?
Yeah, as far as we know, it sells to a private refinery here in Bahia.
Okay. Thank you.
Thank you, Monique. Second question is from Tasso Vasconcellos.
Hi there. Good morning. Good morning, Marcelo, Rafael, and everyone. Marcelo, can I insist a little bit more on Bahia Terra? Can we think about some form of end date for the negotiations? If you don't advance with the negotiations, there's a greater chance of that not happening. There are elections in October. Could that make you change your mind? I know it's difficult to talk about this, but on the side of Petrobras, have you discussed anything about this? And Bahia also, the value of the bid, how comfortable are you in maintaining BRL 1.4 billion, BRL 1.5 billion? In the media, they also talked about this with delays in the negotiations.
We know that after a while, the production of this field, the price of the commodity can vary in the meantime, and there is an increase in the cost with inflation, with a heated up market, and I would like to know what you think. It would be very interesting.
Tasso, I am going to apologize. I will not be able to go into greater details. I am going to reinforce what I said before with a little bit more information. Today, we hear from our legal aid that we have a very good cause, and we are going to prevail. But with regard to our partner, we are working with them, Eneva, and we are working on the design of the relationship between the companies with regard to this consortium, upstream or midstream.
Now, internally, we have a whole design of what needs to be done to advance in the SPA, but we are not able to negotiate with Petrobras on the other side. I would say the following. My impression at this point is that this legal issue will be overcome before we have enough time to worry about pricing or macroeconomics or elections, before this all becomes significant with regard to the business. We monitor, of course, the issues the whole time, the macroeconomic and the pricing all the time. This could be an issue at this point. It is not the case yet. Our optimistic bias with regard to the timing allows me to believe that we are not going to have problems. The company is going to be able to go back to the negotiation table.
The expectation is that from then on, we are going to move in a very quick manner to the signing of an SPE with Petrobras and to be able to solve all the internal governance issues. The timing does not allow me to believe that we are going to have a political problem or a pricing problem that is going to change our level of interest for Polo Bahia Terra. At this point, we are still very interested in the asset. We see lots of possibilities for development, and we trust that very soon we will be able to carry them out.
That was very clear. Thank you very much, Marcelo.
Thank you, Tasso. Next question is from Guilherme Levy from Morgan Stanley. Maybe it is Thiago Casqueiro.
Hi there. Good morning. Can you hear me?
Yes.
Good morning. Thank you for the questions. My questions from Bahia Terra have already been answered.
I just wanted to talk about the comment that Marcelo made before, the new M&A area of the company. I would like to understand if there is any change with regard to the scope of new opportunities that you could look at and if Águas Rasas has been discussed a little more, or if there is any opportunity outside Brazil, that could also make sense in case the acquisition of Bahia Terra does not happen now over the next few months. The second question I wanted to understand, during the negotiations that you have for new natural gas agreements, how do you maintain the benchmark according to the Brent, and how do you see the sustainability of these amounts above 12% of the Brent over the next few years? Thank you.
Thank you, Thiago.
The questions that you asked, if it is abroad or if it is about Águas Rasas, this has been discussed here, and regardless
of Polo Bahia Terra. We do not condition it to that. I think both things can happen. We have had lots of conversations here with the Board and with management, and in a way, the company reinforces the following. It is still focused on what it knows how to do very well and where it has competitive advantage. Mature assets in the soil and in Brazil. That is what we focus on. As the end of the Petrobras investment program ends, as we come to the end of that investment program, we understand that there is bioconsolidation, there are still some small producers, and we believe that we can add value for both sides.
We are paying attention to that, and we are also paying attention to permanent offers in the basins we already work in. This is the core of our M&A process, besides some gas opportunities. Beyond the core, it is what you said. Either in Águas Rasas or assets outside Brazil, our view is a little more opportunistic. We are going to pay attention to see what happens in these situations. If we understand, according to a specific situation, that we are talking about an opportunity that the company should go beyond its core business, we are preparing to go beyond our core business. With regard to what you asked about the gas agreements, João can add to that.
I think that we are going to go through a transition outside the Brent reference, because I think this is very Brazilian because of the historical domain that Petrobras had over the pricing of this product here in Brazil. I think it is not like this around the world, and we are going to move so that this is not the case. I think it is good for the company that it is not like that, because as Rafael mentioned before, the pricing of gas, above all, as it gets away from the Brent, it has a diversification of revenues for the company, and this could work in a different way, depending on the macroeconomic conditions of the future. Today, I see sustainability in the gas price. It is much bigger, and I believe that the company will be able to maintain prices in dollars and not use rates such as Brent.
In the long term, this is better for the company, and I think it is better for the market as well. Do you have anything to add, João?
Just a last point about the sustainability of the price. When we talk about 12% or above, Marcelo talked about how we try to participate in these negotiations. We have a logic for diversification, but we know that 90% of the contracts, especially those in the northeast, they are associated to Brent. Our strategy is to try and capture these volumes with the distributors and free consumers in some cases, as we declared in CEGÁS, and we followed this methodology there.
When you look at the perspectives and the contracts with the distributors published in ANP in 2024, 2025, and 2026, there is still a margin, and the contracts go from 16% to 13% of the Brent, according to the supplier. You also see the removal of Petrobras from this market, the exit of Petrobras from this market, as we have seen in the northeast. Then we see the price of natural gas around the world. The fact is that there are perspectives that natural gas will have high prices, even higher than our more recent contracts.
Great. Thank you.
Thank you, Guilherme. The next question is Felipe Augusto from Brasil Energia.
Hello. Good morning, everyone. Marcelo, I would like to know how many perforations and interventions in wells the company is going to do until the end of 2022. How many probes are being operated by the company?
How many are still going to get this year? Talk a little bit about Urucu. What is the current situation?
Well, we are going through the process of bringing new probes, and Marcelo, I think you have a program of what we're going to do.
Yeah, it's the 44 wells. Yeah, 44 additional perforations or drills. For this year, even with regard to the results that we're getting, we have been preparing ourselves for this to increase our fleet of probes and also diversify it. So today, we have equipment that is very versatile to drill between 500 m and 2,500 m. The next pieces of equipment will be for more efficient drills in two distinct scenarios. One is for more superficial horizons from the Sabiá complex, 500 m, 600 m.
So if we have equipment with specific characteristics, we can be more efficient in this horizon, and maybe in another situation for deeper locations that we have over here, and we can also have this with Bahia Terra, and also what is most adequate according to the deeper reserves where we go beyond the capacity of our current equipment. Something that is very clear in this process when we talk about acquisitions or hiring new probes, is the difficulty of having equipment available for services here in Brazil, and how right the company is in internalizing and training their own people to do this internally. So this gives us more adequate cost structure, and also more agility and flexibility to carry out this business model.
Polo Urucu. How about that?
There was a question about Polo Urucu?
Yeah, we have another question from Ana Luiza, and she was talking about the negotiations of Polo Urucu, and if the company is going to wait for the teaser from Petrobras.
Well, it's not something that is actively being discussed. We are now focused on our business plan and Bahia Terra, but it seems natural for us that this is going to open the market. We have the plan of taking a deeper look into this asset, more than we did last time. So, if it's in an isolated manner or in a partnership with some players in the market. The fact that in Bahia Terra we have Eneva, with which we have established a great relationship, so probably it will also be a partnership.
It's something new for the company, but it has worked very well initially with Sonangol, and now with Eneva, and now Urucu has the characteristics of an asset where we will have a partnership that will add value, and that's probably going to be more interesting. So, on the other hand, we have to put this asset into the market. I don't know if this is going to happen this year in this government, but once again, we see the issue of the fields and the soil that are consolidated, and there's not a lot of biological issues involved. So I think it makes sense for Petrobras, it makes sense for the country, and it makes sense for the industry for these fields to be placed for sale.
Because of the fantastic example of creation of value that we see in the fields in Espírito Santo, and in the northeast. Recôncavo and others, they show a great investment capacity, and above all, they showed, and what we showed in this quarter, the capacity of having effective increased production. So, it's a great benefit, and I think that's going to end up happening.
Thank you. Next question is from Fabiano Vaz from Nord Research. Fabiano, your audio is on. Fabiano, once again, your mic is on. Please ask your question. Okay, so I'm going to go on to the last question from Carolina Rozatto. She asked us to read the CRG Consultoria, that's where she works, and it's several topics that have already been discussed. I'm going to concentrate on what we haven't talked about.
If you invest in exploring campaigns or it's just a revitalizing company for mature fields.
I think I talked about this before. We proposed to have a huge focus in the operation and revitalization of fields internally. This does not mean that we're not It's the opposite, actually. We understand that in the mature basins, especially in contiguous basins and areas that are already operated on by the company, we can have exploratory assets that are interesting, and this has changed a lot. It's another great conquest that the industry was able to do in terms of cost and commitment to the development program. This has gone down quite a bit, and we even talked about one of our operations in the Potiguar Pole. In the second round, we were involved with integration of Miranga and the Polo Bahia Terra.
But we're going to participate actively in the next rounds, observing the feasibility and the possibility of acquiring, exploring concessions in the adjacent areas to the ones we operate in. I think it's very difficult for us to do this in a basin outside the ones we operate in, and I think it's practically impossible to have an activity that is only for exploring in these basins.
And a last question. Thank you, Carolina. So the last question is from Leonardo, and he asked us to comment the partnership that was signed with 3R a few days ago.
Right. So we're very happy to sign it and to have an intense conversation with Ricardo Savini and Mossoró, either public or privately, and our team, João. We also had the opportunity of interacting quite a bit before, during, and after the trade show and the signing of this document.
But it becomes clear for both sides that both companies will gain from this process. We have activities in similar basins, the Potiguar Basin and Recôncavo Basin. The structure of the basin in our hands or in their hands, it really depends on the basin, but above all, who is the owner of production and the infrastructure? We all have common interests. Just an example, monetizing oil from the production of Potiguar in the Riacho da Forquilha well with the light oil. It is very critical for the operation of the Clara Camarão refinery. There is a natural interest from both sides for us to be able to continue to pass this oil through those facilities. The same communion of interests happens in practically all the assets when we talk about infrastructure in both basins.
Once again, we continue to talk to them, and we hope to evolve to models that have not been defined yet, where we will be able to maximize the generation of value for both companies as from this integration of infrastructure.
Thank you, Leonardo, for the question. There are no more questions, Marcelo, so please make your final remarks.
Once again, I would like to thank all of you here, to the team, and at the same time, we are very satisfied about the results that we have had, and we are very anxious to start acting on some other issues, and especially Bahia Terra. But I also see a huge space to develop an ESG plan and a social plan that is a little deeper, as we mentioned here, and above all, to look with greater care to efficiency and productivity.
This company conquered from 2019 until now something that is extremely relevant. We more than quadrupled our production during this period. Today we went from 200,000 to another 1,000 employees. I say that over the last few years we have been in a startup environment. That is my joke here. This is in the middle of the pandemic. I think that we showed during this process that we are able to carry things out in a very efficient manner, talking about our business model. We are above our curve, and the main indication that we give to the market is that we can get positive outcomes in our drilling and workover activities, and we are also enhancing the capacity of doing more drilling operations. But it is time to dedicate ourselves even more to productivity and efficiency.
This has always been a great guide in the company, and balance of this in a period of growth. We still expect to grow a lot organically as well as with the acquisition of Bahia Terra. We are structuring ourselves from the high end to the base so that we can generate more efficiency and productivity, and for us to have the opportunity of being here every quarter, providing better results all the time to our investors. Once again, thank you very much, everyone.
Thank you, everyone. This is the end of our conference. See you next time. Recording is over. Have a good day, everyone.