Prio S A : ITR DÓLAR

Prio S.A.

Quarterly Information in US dollar

March 31, 2024

Legal Notice

This report uses the Company's functional currency, the US dollar, as the presentation currency, and was prepared to allow comparison with other companies in the oil sector. For the purpose of comparability, we have converted (i) all assets and liabilities on the Balance Sheet as of December 31, 2022 at the closing exchange rate on December 31, 2022; (ii) all accounts in the income statement, other comprehensive income and cash flows using the average exchange rate prevailing during the applicable period.

Balance sheet	3
Balance sheet	4
Statements of income	5
Statements of comprehensive income	6
Statements of changes in shareholders' equity	7
Statements of cash flows	8
1.	Operations	9
2.	Accounting policies material to the quarterly information	11
3.	Cash and cash equivalents	13
4.	Accounts receivable	14
5.	Recoverable taxes	14
6.	Investments	15
7.	Property, plant and equipment (Consolidated)	17
8.	Intangible assets (Consolidated)	18
9.	Suppliers	21
10.	Labor obligations	21
11.	Taxes and social contributions payable	22
12.	Loans and financing	22
13.	Local debentures (includes conversion swaps)	24
14.	Lease operations	26
15.	Current and deferred income tax and social contribution	27
16.	Provision for abandonment (ARO)	28
17.	Impairment	29
18.	Shareholders' equity	29
19.	Related party transactions (Parent company)	31
20.	Net revenue	32
21.	Costs of products sold	33
22.	Other revenues and expenses	33
23.	Financial income (loss)	34
24.	Income tax and social contribution	35
25.	Segment reporting (Consolidated)	35
26.	Objectives and policies for financial risk management	36
27.	Insurance	41
28.	Contingencies	41
29.	Subsequent events	43

Balance sheet

March 31, 2024 and December 31, 2023 (In thousands of dollars-US$)

		Parent Company	Consolidated
	Note	03/31/2024	12/31/2023	03/31/2024	12/31/2023
Assets
Current assets
Cash and cash equivalents	3	3,060	3,769	806,633	482,392
Accounts receivable	4	-	-	286,563	360,129
Oil inventories	21	-	-	70,196	52,533
Inventory of consumables		-	-	87,323	82,069
Financial instruments	26	-	-	-	74
Recoverable taxes	5	402	404	73,124	71,811
Advances to suppliers		7	7	23,747	20,703
Advances to partners		-	-	-	19,248
Prepaid expenses		17	15	3,541	4,571
Other receivables		-	-	7,987	159
		3,486	4,195	1,359,114	1,093,689
Non-current assets
Advances to suppliers		-	-	46	46
Mark-to-market of debenture swaps	13	-	-	-	18,643
Deposits and pledges	28	-	-	5,992	6,191
Recoverable taxes	5	-	-	480	873
Deferred taxes	15	2,524	2,105	45,414	106,703
Related parties	19	14,130	1,932	-	-
Right-of-use (Lease CPC 06.R2/IFRS 16)	14	-	-	410,947	422,275
Investments	6	3,197,033	2,975,110	-	-
Property, plant and equipment	7	40	46	2,133,904	1,946,816
Intangible assets	8	-	-	2,185,966	2,254,534
		3,213,727	2,979,193	4,801,392	4,754,107
Total assets		3,217,213	2,983,388	6,160,506	5,847,796

See the accompanying notes to the quarterly information.

3

Balance sheet

As of March 31, 2024 and December 31, 2023 (In thousands of dollars-US$)

		Parent Company	Consolidated
	Note	03/31/2024	12/31/2023	03/31/2024	12/31/2023
Liabilities and shareholders' equity
Current liabilities
Suppliers	9	104	133	127,453	172,429
Labor obligations	10	2,793	3,116	35,951	55,128
Taxes and social contributions	11	131	140	82,173	122,489
Loans and financing	12	-	-	266,343	250,477
Local debentures (includes conversion swaps)	13	-	-	1,503	8,144
Financial instruments	26	-	-	1,164	-
Advance from partners		-	-	905	-
Contractual charges (Leases - IFRS 16)	14	-	-	46,612	46,372
Accounts payable - earn out Albacora Leste	8	-	-	165,372	59,584
Other accounts payable		-	-	-	848
		3,028	3,389	727,476	715,471
Non-current liabilities
Loans and financing	12	-	-	747,167	896,630
Local debentures (includes conversion swaps)	13	-	-	768,953	371,852
Provision for abandonment (ARO)	16	-	-	238,534	231,638
Provision for contingencies	28	80	83	198,977	195,423
Related parties	19	132,418	113,237	-	-
Contractual charges (Leases - IFRS 16)	14	-	-	390,060	400,045
Accounts payable - earn out Albacora Leste	8	-	-	-	162,502
Other liabilities		39	36	7,691	7,592
		132,537	113,356	2,351,382	2,265,682
Shareholders' equity
Realized share capital	18	1,425,545	959,899	1,425,545	959,899
Capital reserves		(56,025)	(41,856)	(56,025)	(41,856)
Profit reserves		1,356,442	1,810,361	1,356,442	1,810,361
Accumulated translation adjustment		121,254	121,570	121,254	121,570
Equity valuation adjustments	13	16,717	16,669	16,717	16,669
Income (loss) for the period		217,715	-	217,715	-
		3,081,648	2,866,643	3,081,648	2,866,643
Total liabilities and shareholders' equity		3,217,213	2,983,388	6,160,506	5,847,796

See the accompanying notes to the quarterly information.

4

Statements of income

Three-month period ended March 31, 2024 and 2023

(In thousands of dollars-US$, except earnings/losses per share)

		Parent Company	Consolidated
	Note	03/31/2024	03/31/2023	03/31/2024	03/31/2023
Net revenue	20	-	-	642,154	524,599
Costs of products/services	21	-	-	(268,255)	(188,262)
Gross revenue		-	-	373,899	336,337
Operating revenues (expenses)
Geology and geophysics expenses		-	-	(89)	-
Personnel expenses		(4,538)	(188)	(8,231)	(5,837)
General and administrative expenses		(7)	(44)	(3,446)	(3,956)
Expenses with Outsourced Services		(304)	(164)	(4,352)	(1,341)
Taxes and rates		(173)	(96)	(2,904)	(899)
Depreciation and amortization expenses		(7)	(16)	(4,950)	(4,142)
Equity in net income of subsidiaries	6	222,191	223,878	-	-
Other operating revenues (expenses), net	22	(14)	(1,045)	4,431	(27,246)
Operating income (loss) before financial income (loss)		217,148	222,325	354,358	292,916
Financial revenues	23	42	84	10,264	5,065
Financial expenses	23	(1,544)	(335)	(59,005)	(44,087)
Net exchange-rate changes	23	1,592	61	8,191	(13,108)
Income before income tax and social contribution		217,238	222,135	313,808	240,786
Current income tax and social contribution	24	-	(351)	(36,250)	(25,022)
Deferred income tax and social contribution	24	477	-	(59,843)	6,020
Income for the period		217,715	221,784	217,715	221,784
Basic and diluted earnings per share
Basic		0.260	0.262	0.260	0.262
Diluted		0.259	0.260	0.259	0.260

See the accompanying notes to the quarterly information.

5

Statements of comprehensive income Three-month period ended March 31, 2024 and 2023 (In thousands of dollars-US$)

	Consolidated
	03/31/2024	03/31/2023
Income (loss) for the period	217,715	221,784
Mark-to-market of local debenture swaps	48	7,836
(-) Deferred taxes on mark-to-market of swaps	(16)	(2,664)
Translation adjustment on investment abroad, net of taxes	(316)	(5,234)
Other comprehensive income for the period, net of taxes	(284)	(62)
Total other comprehensive income for the period, net of taxes	217,431	221,722

See the accompanying notes to the quarterly information.

6

Statements of changes in shareholders' equity

Three-month period ended March 31, 2024 and 2023 (In thousands of dollars-US$)

		Capital reserve		Accumulated	Equity
		Capital	Treasury	Profit	translation	valuation	Retained
	Capital	reserve	shares	reserve	adjustment	adjustment	earnings	Consolidated
Balances at January 1, 2024	959,899	70,502	(112,358)	1,810,361	121,570	16,669	-	2,866,643
Paid-up capital	465,646	-	-	(453,919)	-	-	-	11,727
Stock options granted	-	2,163	-	-	-	-	-	2,163
Translation adjustment on investment abroad	-	-	-	-	(316)	-	-	(316)
Gain (loss) with financial instruments	-	-	-	-	-	48	-	48
Treasury shares	-	-	(16,332)	-	-	-	-	(16,332)
Net income for the period	-	-	-	-	-	-	217,715	217,715
Balances at March 31, 2024	1,425,545	72,665	(128,690)	1,356,442	121,254	16,717	217,715	3,081,648

See the accompanying notes to the quarterly information.

7

Statements of cash flows

Three-month period ended March 31, 2024 and 2023 (In thousands of dollars-US$)

	Parent Company	Consolidated
	03/31/2024	03/31/2023	03/31/2024	03/31/2023
Cash flows from operating activities
Income (loss) for the year (before taxes)	217,238	222,135	313,808	240,786
Depreciation and amortization	7	16	122,891	60,515
Financial revenue	(2,413)	(831)	(120,509)	(70,214)
Financial expenses	2,218	1,157	160,388	102,429
Share-based compensation	2,163	3,654	2,163	3,654
Equity in net income of subsidiaries	(222,191)	(223,878)	-	-
Provision for contingencies/losses/R&D	217,238	222,135	4,567	10,201
Amendment of the provision for abandonment/IFRS 16 Contracts	-	-	69	6,272
Negative goodwill on acquisition of Albacora Leste	-	-	-	(3,230)
	(2,978)	2,253	483,377	350,413
(Increase) decrease in assets
Accounts receivable	-	-	73,600	(384,834)
Recoverable taxes	(164)	34	(7,098)	22,005
Prepaid expenses	(2)	90	1,032	1,380
Advances to suppliers	-	-	(3,044)	(6,658)
Oil inventories	-	-	(12,867)	43,436
Inventory of consumables	-	-	(5,254)	(2,741)
Related parties	(12,198)	(8,682)	-	-
Advance to partners in oil and gas operations	-	-	20,190	3,540
Deposits and pledges	-	1	239	(269)
Other receivables	(6)	1	(7,471)	(212)
Increase (decrease) in liabilities
Suppliers	(715)	213	(35,565)	(428)
Labor obligations	(247)	(1,412)	(17,991)	8,437
Taxes and social contributions	(192)	11	(73,952)	(19,467)
Related parties	20,395	11,565	-	-
Other liabilities	2	110	(604)	3,115
Net cash (invested in) from operating activities	3,895	4,184	414,592	17,717
Cash flows from investment activities
(Investment in) redemption of abandonment fund	-	-	(537)	(331)
Non-current assets held for sale	-	-	(1,271)	-
(Purchase) sale of property, plant and equipment	-	-	(237,852)	(140,658)
(Acquisition) of oil and gas assets	-	-	(59,940)	(1,839,470)
Net cash (invested in) from investment activities	-	-	(299,600)	(1,980,459)
Cash flows from financing activities
Borrowings	-	-	-	278,000
Repayment of principal on loans	-	-	(136,000)	-
Interest paid on loans	-	-	(13,604)	(6,027)
Contractual charges - Leases IFRS 16 - Principal	-	-	(3,192)	(994)
Contractual charges (Leases - IFRS 16) - Interest	-	-	(9,078)	(5,817)
Funding of debentures	-	-	388,035	-
Interest paid on debentures	-	-	(13,962)	(19,574)
Derivative transactions	-	-	1,238	(19,098)
(Decrease) Paid-up capital	11,728	6,519	11,728	6,519
Own Company's shares (held in treasury)	(16,332)	(9,490)	(16,332)	(9,490)
Net cash (invested in) from financing activities	(4,604)	(2,971)	208,833	223,519
Translation adjustment	-	-	416	615
Net increase (decrease) in cash and cash equivalents	(709)	1,213	324,241	(1,738,608)
Cash and cash equivalents at the beginning of the period	3,769	3,287	482,392	1,842,375
Cash and cash equivalents at the end of the period	3,060	4,500	806,633	103,767
Net increase (decrease) in cash and cash equivalents	(709)	1,213	324,241	(1,738,608)

See the accompanying notes to the quarterly information.

8

Notes to the quarterly information

March 31, 2024

(In thousands of dollars-US$, unless otherwise indicated)

1. Operations

Prio S.A. ("Prio" or "Company"), was established on July 17, 2009. Headquartered in the city of Rio de Janeiro, its main purpose is to hold interests in other companies as partner, shareholder or unitholder, in Brazil and abroad, with a focus on exploration, development and production of oil and natural gas.

For the purpose of this report, Petro Rio S.A and its subsidiaries are denominated, individually or jointly, as the "Company" or "Group", respectively.

Its relevant activities are carried out by means of subsidiaries Petro Rio Jaguar Petróleo SA. ("Jaguar"), Prio Bravo Ltda ("Bravo") and Prio Forte S.A. ("Forte"), and they are focused on the production of oil and natural gas, operating in Campos Basin on March 31, 2024:

Country	Basin	Block	Field	Concessionaire	%	Status	Phase
Brazil	Campos	BM-C-8	Polvo	Bravo	100%	Operator	Production
Brazil	Campos	C-M-466	Tubarão Martelo	Bravo	100%	Operator	Production
Brazil	Campos	Frade	Frade	Jaguar	100%	Operator	Production
Brazil	Campos	Albacora Leste	Albacora Leste	Jaguar	90%	Operator	Production
Brazil	Campos	BM-C-30	Wahoo	Jaguar	64%	Operator	Exploration
Brazil	Campos	BM-C-32	Itaipu	Jaguar	100%	Operator	Exploration
Brazil	Foz do Amazonas	FZA-M-254		Coral	100%	Operator	Exploration
Brazil	Foz do Amazonas	FZA-M-539	Pirapema	Coral	100%	Operator	Exploration

Below we describe the activities in the main Fields where the Company operates:

Polvo Field

The Company is the operator and holds 100% of the Polvo Field concession contract, acquired from BP Energy do Brasil Ltda. ("BP") - 60% in 2014 and from Maersk Energia Ltda. ("Maersk") - 40% in 2015. On March 29, 2023, the Field concession was transferred from the subsidiary Petro Rio O&G Exploração e Produção de Petróleo Ltda. ("PrioOG") to the subsidiary Bravo, starting a process of restructuring/streamlining the group's corporate structure, with no impact on the quarterly information.

The Polvo Field is in the southern portion of the Campos Basin (offshore) some 100 km east of the city of Cabo Frio in the state of Rio de Janeiro. The license covers an area of approximately 134 km2 with several prospects for future exploration. Average daily output during the first quarter of 2024 was of roughly 6.1 thousand barrels (6.0 thousand barrels for the first quarter of 2023).

Tubarão Martelo ("TBMT") and Prio Forte S.A. ("Forte")

As of August 3, 2020, PrioOG completed the acquisition of 80% of the Tubarão Martelo Field operations and took over the Field's operation.

The Tubarão Martelo Field is located in the south of the Campos Basin, approximately 86 kilometers off the coast of the State of Rio de Janeiro. The license covers an area of approximately 32 km², with an average water depth of 110m. The Field produced approximately 9.8 thousand bbl of oil per day in the first quarter of 2024 (6.5 thousand bbl of oil per day in the first quarter of 2023).

9

Notes to the quarterly information

March 31, 2024

(In thousands of dollars-US$, unless otherwise indicated)

On January 8, 2023, the subsidiary Petro Rio OPCO Exploração Petrolífera Ltda. ("OPCO") completed the acquisition of shares and control of Dommo. As of this date, all Dommo's shares were transferred to OPCO, in exchange for PNA shares that were redeemed on the same day for PRIO3 shares; and PNB, in turn redeemed in cash on January 13, 2023, as detailed in Note 8. Dommo Energia S.A. had its corporate name changed to Prio Forte S.A. ("Forte").

FPSO Bravo and connection between the Polvo and Tubarão Martelo fields

As of February 3, 2020, the Company entered into a contract for the acquisition of the FPSO Bravo vessel (Floating, Production, Storage and Offloading - FPSO), built in 2012 with a processing capacity of 100 thousand bbl of oil per day and storage capacity of 1.3 million bbl.

Currently, the FPSO operates in the Tubarão Martelo and Polvo Fields, through a tieback with the Polvo A Fixed Platform, concluded on July 14, 2021.

Frade Field

On March 25, 2019 and October 01, 2019, after complying with the precedent conditions and obtaining the necessary approvals, Jaguar completed the acquisition of 51.74% and 18.26%, respectively, of interest in the concession of Frade Field, in the operational assets of the Field, and assumed the operation of the Field.

Furthermore, on November 28, 2019, Jaguar signed a purchase and sale agreement with Petrobras for the acquisition of the remaining 30% interest in the Field, increasing interest in Frade Field to 100%. The completion of this transaction took place on February 5, 2021.

The Frade Field is in the northern region of the Campos Basin, about 120 kilometers from the coast of the State of Rio de Janeiro. The license covers an area of approximately 154 km², with an average water depth of 1,155 m. In the 1Q24, the Field produced approximately 45.2 thousand bbl of oil per day in the first quarter of 2024 (32.9 thousand bbl of oil per day in the first quarter of 2023).

Albacora Leste field

On April 28, 2022, Jaguar signed a Purchase and Sale Agreement with Petróleo Brasileiro S.A. ("Petrobras") for the acquisition of a 90% interest and operation of Albacora Leste Field, with Repsol Sinopec Brasil as the partner holding the remaining 10%.

On January 26, 2023, upon ANP's approval, the acquisition of operation and a 90% interest in Albacora Leste Field ("Field" or "Albacora Leste") with Petrobras was concluded. As of this date, PRIO becomes the operator of the asset, pursuant to Note 8.

Albacora Leste is located at a water depth of 1,200 meters, in the north of the Campos Basin, 23 km from the Frade Field. Discovered in 1986, the field had its first oil in 1998 through its 10 producing wells and 6 injection wells currently in operation. The field produced in the first quarter of 2024, approximately 25.6 thousand bbl of oil per day (24.3 thousand bbl of oil per day in the first quarter of 2023).

10