Proof of Concept Achieved; Major Source Rock
Discovery
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CALGARY, Aug. 13, 2014 /CNW/ - Petro-Victory Energy Corp.
("Petro-Victory" or the "Company")(TSX-V:VRY)
Petro-Victory Energy Corp announces that the PE-PY-J x1 well has
been successfully drilled and has confirmed the prolific Devonian
petroleum system of SE Bolivia and
NW Argentina extends into the
Pirity Basin of Paraguay. The
Jacaranda well has proven the first live source rock to be
discovered in the Pirity Basin, and significantly derisks the
remaining two wells in the drilling campaign.
Highlights
- First of three well program has encountered over 800m of live
Devonian source rock in oil and gas- condensate window
- Inflows of gas into the wellbore, with background gas of 5%,
trip gas of 50% recorded, hydrocarbon shows C1 (methane) to C5
(pentane) indicating liquid generation
- No seal at primary target at this location, high quality (20%
porosity) reservoir sands encountered above source rock
- First time the Paleozoic play system has ever been proven to
exist in Pirity Basin, Paraguay
- Source rock derisks the next well and multiple targets across
Petro-Victory's Concession
- Potential gas condensate reservoir identified below target
depth, well suspended for future re-entry
- Well drilled ahead of schedule and under budget
- Jacaranda results support Lapacho and Tapir prospects
- Due to positive results, Lapacho elected as next prospect in
sequence
Richard F. Gonzalez, President
and CEO, comments:
"Since our inception in 2006, we have invested and worked
diligently towards our ultimate goal of discovering and producing
commercial quantities of hydrocarbons in the Pirity Basin of
Paraguay. The successful, on time, under budget, drilling and
discovery of a live generative source rock in our first (Jacaranda)
of a three well program is a major milestone. We look forward
to spudding our second well, Lapacho, in the first half of
September. "
Jacaranda Well
Having drilled the PE-PY-J x-1 (Jacaranda) well to a depth of
4500m, it has been suspended for re-entry at a later date. The
drilling operation was extremely efficient and the well was drilled
ahead of schedule, 300 meters deeper than planned, under budget,
and without incident. This is a commendable result for the first
deep well to be drilled in Paraguay for 30 years, in a remote location
lacking any in-country oil field infrastructure.
The well has confirmed that the prolific Devonian petroleum
system of SE Bolivia and
NW Argentina extends into the
Pirity Rift Basin of Paraguay.
Over 800m of live Devonian source rock was penetrated (and was
still present at TD), which is at the high end of pre-drill
estimates. This positive result has materially de-risked a large
and prospective structural play fairway for Petro-Victory's oil and
gas-condensate prospects in Paraguay. This is the first time a live
source rock has been discovered in the Pirity Basin. The immediate
follow on will be to drill the largest single target in the basin,
which is the Lapacho prospect just south of Jacaranda.
The Devonian source rock (Los Monos and Icla Formations)
comprises a thick sequence (over 1000m in total) of marine black
shales and geochemical analysis has confirmed good source rock
quality (Total Organic Carbon, average >1% ). Maturity levels
are in the oil window and extend down to the gas-condensate window
below (4200m). Background gas levels of 5% were recorded
during drilling and trip gas exceeded 50%. The hydrocarbon shows
comprised C1 (methane) to C5 (pentane) indicating liquid
hydrocarbons throughout. With input from external
unconventional experts, Petro-Victory's operating partner,
President Energy, is conducting an evaluation to determine whether
the Devonian also represents an unconventional shale gas resource
in addition to its obvious qualities as an excellent conventional
source rock. Results of the unconventional analysis will be
released in due course but the immediate priority is to pursue high
graded conventional prospects charged by the now proven Devonian
petroleum system.
The primary reservoir target of the Jacaranda well was predicted
to be a Carboniferous sandstone lying directly above the Devonian
source rock. The well confirmed that a very well developed
reservoir quality sand is present (high average porosity, 20% and
90m thick), however the Carboniferous sandstone (Tupambi formation)
was not sealed at this location and hydrocarbons migrated away. The
Cretaceous Pirgua target contained low levels of migrated Devonian
gas but no effective trap geometry. The presence of Devonian gas
demonstrates the ability for hydrocarbon migration in the
basin.
The lack of an effective Carboniferous target at this location
has been tempered by discovery of a thick, live Devonian source
rock immediately below. The exploration objective is to find the
first conventional reservoir sand developed within or just below
the Devonian source rock sequence. Jacaranda did not drill deep
enough to encounter conventional Devonian reservoirs and seismic
evidence suggests the first reservoir sand will occur some 150m
below current TD. For this reason the well has been suspended to
allow deepening to reach these conventional reservoir targets at a
later date.
Lapacho and Tapir
Due to the positive result at Jacaranda, the immediate
priority is to move the rig directly to the Lapacho prospect
where seismic indicates the presence of a 400m section predicted to
contain thick reservoir sands (Santa Rosa Formation) lying at a
drill depth of 4300m, immediately below the Devonian source rock.
The QG 1 rig will now be mobilized the 17km from Jacaranda to
the Lapacho location, with a view to spudding before mid
September.
The Tapir prospect will now be drilled after Lapacho as well
three in the Pirity Basin drilling campaign. Drilling results at
Jacaranda have not changed our positive view of Tapir despite the
shallow Cretaceous targets at Jacaranda have been shown to contain
no hydrocarbons at this location. The Cretaceous Lecho Sand target
was penetrated at Jacaranda as predicted and had excellent
reservoir properties (80m thick, 25% average porosity). The test
failed due to the critical risk as identified pre-drill, lack of
topseal at this location and any hydrocarbons present will have
leaked further up-dip beyond the current prospect area.
Petro-Victory Energy Corp. is a publicly held British Virgin Islands exploration company
focused on Latin America with
headquarters based in Fort Worth,
Texas, United States.
Petro-Victory pursues its growth by applying a combination of
technical knowledge (its own and third parties' knowledge and
expertise) with its current primary focus in the Pirity Block
Concession located in Paraguay.
Petro-Victory continues to apply a variety of strategies and
procedures to create and add value to its assets and deliver
earnings, reasonable profits, and business success to its
shareholders
Cautionary Note
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Advisory Regarding Forward-Looking Statements and Resource
Disclosure
In the interest of providing Petro-Victory's shareholders and
potential investors with information regarding Petro-Victory,
including management's assessment of Petro-Victory's future plans
and operations, certain statements in this press release are
"forward-looking statements" within the meaning of the United
States Private Securities Litigation Reform Act of 1995 and
"forward-looking information" within the meaning of applicable
Canadian securities legislation (collectively, "forward-looking
statements"). In some cases, forward-looking statements can be
identified by terminology such as "anticipate", "believe",
"continue", "could", "estimate", "expect", "forecast", "intend",
"may", "objective", "ongoing", "outlook", "potential", "project",
"plan", "should", "target", "would", "will" or similar words
suggesting future outcomes, events or performance. The
forward-looking statements contained in this press release speak
only as of the date thereof and are expressly qualified by this
cautionary statement.
Specifically, this press release contains forward-looking
statements relating to but not limited to: our business strategies,
plans and objectives, drilling and exploration expectations, future
well operations, the anticipated benefits of the recently drilled
well, and future operations on the recently drilled well. These
forward-looking statements are based on certain key assumptions
regarding, among other things: exploration activities; the receipt,
in a timely manner, of regulatory and other required approvals for
our operating activities; the availability and cost of labour and
other industry services; the continuance of existing and, in
certain circumstances, proposed tax and royalty regimes; and
current industry conditions, laws and regulations continuing in
effect (or, where changes are proposed, such changes being adopted
as anticipated). Readers are cautioned that such assumptions,
although considered reasonable by Petro-Victory at the time of
preparation, may prove to be incorrect. The resource
information contained in the news release incorporated into this
release is that of President Energy PLC and not the
Company's. The resource disclosure for the Company is
contained in our Final Prospectus dated July
11, 2014, and our other disclosure as filed with Canadian
securities regulatory authorities at www.sedar.com.
Actual results achieved will vary from the information provided
herein as a result of numerous known and unknown risks and
uncertainties and other factors. These and additional risk factors
are contained in our Final Prospectus dated July 11, 2014, as filed with Canadian securities
regulatory authorities at www.sedar.com.
The above summary of assumptions and risks related to
forward-looking statements in this press release has been provided
in order to provide shareholders and potential investors with a
more complete perspective on Petro-Victory's current and future
operations and such information may not be appropriate for other
purposes. There is no representation by Petro-Victory that actual
results achieved will be the same in whole or in part as those
referenced in the forward-looking statements and Petro-Victory does
not undertake any obligation to update publicly or to revise any of
the included forward-looking statements, whether as a result of new
information, future events or otherwise, except as may be required
by applicable securities law.
SOURCE Petro-Victory Energy Corp.