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CALGARY, Aug. 14, 2014 /CNW/ - Petro-Victory Energy
Corp. ("Petro-Victory" or the "Company")(TSX-V:VRY)
Petro-Victory Energy Corp. ("Petro-Victory") is pleased to
announce the results of an independent audit of its Prospective
Resources over the "Lapacho" prospect, Pirity Block located in
Paraguay, which was carried out by
the international consultancy firm RPS Energy and dated
July 28, 2014, with an effective date
and preparation date of June 1,
2014. This Audit Report was an update of the previous RPS
Audit Report dated May 19, 2014,
which audited two of three selected prospective areas in the Pirity
Block.
The "Lapacho" prospect, which is located mostly in the Pirity
Block, but does extend into the Demattei Block which is not held by
the Company (the percentage of on-block volumes varies with the
range of potential mapped closures), is estimated to contain mean
Prospective Resources of 5.2 Tscf gas and 157 million barrels of
condensate on a full-field (100% working interest) basis, of which
3.8 trillion standard cubic feet ("Tscf") (gas) and 114 million
barrels (condensate) are within the Pirity Block. The mean unrisked
Prospective Resources Net Attributable to Petro-Victory are 1.13
Tscf gas and 34 million barrels of condensate (the Net Attributable
represents Petro-Victory's 36% working interest entitlement after
deduction of government royalty and overriding royalty interest).
RPS Energy estimates the Geologic Probability of Success ("GPoS",
or chance of discovery) of the Lapacho prospect at 11.7%. (see
Notes and Cautionary Statements) as follows:
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Prospective Gas
Resources Summary for Lapacho Prospect
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Prospect -
License
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Gross1
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Net
Attributable1
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Primary
Gas (Bscf)
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Low
Estimate
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Best
Estimate
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High
Estimate
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Mean
Estimate
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Low
Estimate
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Best
Estimate
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High
Estimate
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Mean
Estimate
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GPoS %
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Paleozoic
Reservoir
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Pirity2
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532
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1118
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2596
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1356
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442
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928
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2155
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1126
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11.7
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Notes:
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1
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Gross represents
Petro-Victory's ultimate 36% WI after President's earning
obligations have been met; Net is Petro-Victory's 36% WI
entitlement after Government Royalty and ORRI
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2
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The Lapacho Paleozoic
Prospect lies across the Pirity and Demattei licence boundary. As
currently mapped, the Low Est. trap geometry is 86% Pirity14%
Demattei, Best Est. is 73% Pirity 27% Demattei, High Est.72% Pirity
28% Demattei
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Source: - RPS Energy
audit of President's Volumetrics and Assumptions
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Prospective
Condensate Resources for Lapacho Prospect
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Prospect -
License
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Gross1
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Net
Attributable1
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Condensate
(MMstb)
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Low
Estimate
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Best
Estimate
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High
Estimate
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Mean
Estimate
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Low
Estimate
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Best
Estimate
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High
Estimate
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Mean
Estimate
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GPoS %
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Paleozoic
Reservoir
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Pirity2
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16
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33
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77
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41
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13
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28
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64
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34
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11.7
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Notes:
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1
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Gross represents
Petro-Victory's ultimate 36% WI after President's earning
obligations have been met; Net is Petro-Victory's 36% WI
entitlement after Government Royalty and ORRI
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2
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The Lapacho Paleozoic
Prospect lies across the Pirity and Demattei licence boundary. As
currently mapped, the Low Est. trap geometry is 86% Pirity14%
Demattei, Best Est. is 73% Pirity 27% Demattei, High Est.72% Pirity
28% Demattei
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Source: - RPS Energy
audit of President's Volumetrics and Assumptions
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Notes and
Cautionary Statements:
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1.
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There is no certainty
that any portion of the Prospective Resources will be discovered.
If discovered, there is no certainty that it will be commercially
viable to produce any portion of the Prospective Resources. Readers
are cautioned that the volumes presented are estimates only and
should not be construed as being exact quantities.
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2.
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Although the Company
has identified Prospective Resources, there are numerous
uncertainties inherent in estimating oil and gas resources,
including many factors beyond the Company's control and no
assurance can be given that the indicated level of resources or
recovery of oil and gas will be realized. In general, estimates of
recoverable oil and gas resources are based upon a number of
factors and assumptions made as of the date on which the resource
estimates were determined, such as geological and engineering
estimates which have inherent uncertainties and the assumed effects
of regulation by governmental agencies and estimates of future
commodity prices and operating costs, all of which may vary
considerably from actual results.
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3.
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All such estimates
are, to some degree, uncertain and classifications of resources are
only attempts to define the degree of uncertainty involved. For
these reasons, estimates of the recoverable oil and gas and the
classification of such resources based on risk of recovery, when
prepared by different engineers or by the same engineers at
different times, may vary substantially.
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4.
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Estimates of
resources always involve uncertainty, and the degree of uncertainty
can vary widely between accumulations/projects and over the life of
a project. Consequently, estimates of resources should generally be
quoted as a range according to the level of confidence associated
with the estimates. An understanding of statistical concepts and
terminology is essential to understanding the confidence associated
with resources definitions and categories.
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5.
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The range of
uncertainty of estimated recoverable volumes may be represented by
either deterministic scenarios or by a probability distribution.
Resources should be provided as low, best, and high estimates as
follows:
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a.
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Low Estimate: This is
considered to be a conservative estimate of the quantity that will
actually be recovered. It is likely that the actual remaining
quantities recovered will exceed the low estimate. If probabilistic
methods are used, there should be at least a 90 percent probability
(P90) that the quantities actually recovered will equal or exceed
the low estimate.
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b.
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Best Estimate: This
is considered to be the best estimate of the quantity that will
actually be recovered. It is equally likely that the actual
remaining quantities recovered will be greater or less than the
best estimate. If probabilistic methods are used, there should be
at least a 50 percent probability (P50) that the quantities
actually recovered will equal or exceed the best
estimate.
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c.
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High Estimate: This
is considered to be an optimistic estimate of the quantity that
will actually be recovered. It is unlikely that the actual
remaining quantities recovered will exceed the high estimate. If
probabilistic methods are used, there should be at least a ten
percent probability (P10) that the quantities actually recovered
will equal or exceed the high estimate.
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This approach to
describing uncertainty may be applied to reserves, contingent
resources, and Prospective Resources. There may be significant risk
that sub-commercial and undiscovered accumulations will not achieve
commercial production. However, it is useful to consider and
identify the range of potentially recoverable quantities
independently of such risk.
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6.
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Prospective Resources
are those quantities of petroleum estimated, as of a given date, to
be potentially recoverable from undiscovered accumulations by
application of future development projects. Prospective Resources
have two risk components, the chance of discovery and the chance of
development.
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7.
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GPoS is "Geologic
Probability of Success" and is the risk factor associated with the
chance of discovery. It is the probability that a prospect will be
successful and contain recoverable volumes of hydrocarbons. This
chance does not include chance of development. If a discovery is
made, there is no assurance that the discovery will be suitable for
commercial development. There are several factors which contribute
to the RPS Energy estimate of GPoS, including the risk that an
hydrocarbon trap may not be present, the risk that adequate
reservoir properties may not exist, the risk that the reservoir
trap will not have an effective seal, and the risk that a source of
hydrocarbons and migration path (hydrocarbon source) to the
reservoir may not be present. In the Lapacho prospect, RPS
Energy rates the reservoir and seal risks as the most important,
with the trap and source risks being lower.
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The Lower Devonian/Silurian Santa Rosa geological system (in
which the "Lapacho" prospect is found) has the potential to be a
significant gas-condensate system.
The Prospective Resources RPS Audit reports, which were
initially carried out for the Operator, President Energy, and
updated for Petro-Victory, seem to indicate the opportunity to open
up a new hydrocarbon Province, with several other leads and
prospects yet to be evaluated in the Pirity Block.
The largest single prospect in the Pirity Block looks now to be
"Lapacho" which is fully described in the Audit Report Update of
Prospective Resources carried out by the independent resource
evaluator, RPS Energy and disclosed today.
Cautionary Statements Regarding Resources:
There are several significant positive factors relating to the
Prospective Resource estimate, including that: (i) the geological
features identified in the 2D and 3D seismic program indicate that
the resources are on trend with existing offset production in
Bolivia and Argentina, (ii) the results from the new
seismic program identified new, prolific structures in the
Paleozoic section that were not previously under consideration by
President Energy or the Company, and (iii) the reservoirs are
projected to have adequate permeability to flow initially without
artificial lift, which should expedite evaluation for commerciality
and future development. The significant negative factors relating
to the Prospective Resource estimate include: (i) structural events
are well defined seismically and are low risk, however, reservoir
quality, seal, hydrocarbon migration and associated hydrocarbon
column estimates are more at risk than the former, (ii) well costs
are very high due to the exploratory nature of the initial group of
wells, (iii) due to lack of any mid-stream infrastructure proximate
to the prospects, oil and gas-condensate discoveries may be
stranded for some time until mid-stream infrastructure is in place,
which may take some time due to the remoteness of the prospects and
costs associated with same, and (iv) the Pirity Block is located in
Paraguay, and, as a result, the
Company's operations may be adversely affected by changes in
Paraguay's government policies and
legislation (which in some instances may apply retrospectively) or
social instability in Paraguay and
other factors which are not within the control of the Company.
Further, Paraguay is not currently
a producer of oil or natural gas and it has neither oil and gas
pipelines nor a railway system to transport oil and natural gas. In
the event of an oil or gas-condensate discovery in the Pirity
Block, Management believes that the transportation of any such oil
or gas-condensate will initially be truck, using existing roads and
highways, from the producing field to the final destination point
or to an intermediate transfer point (whereby the oil or
gas-condensate may be transferred to a barge for river
transportation).
Although Petro-Victory has identified Prospective Resources,
there are numerous uncertainties inherent in estimating oil and gas
resources, including many factors beyond the Petro-Victory's
control and no assurance can be given that the indicated level of
resources or recovery of oil and gas will be realized. In general,
estimates of recoverable oil and gas resources are based upon a
number of factors and assumptions made as of the date on which the
resource estimates were determined, such as geological and
engineering estimates which have inherent uncertainties and the
assumed effects of regulation by governmental agencies and
estimates of future commodity prices and operating costs, all of
which may vary considerably from actual results. All such estimates
are, to some degree, uncertain and classifications of resources are
only attempts to define the degree of uncertainty involved. For
these reasons, estimates of the recoverable oil and gas and the
classification of such resources based on risk of recovery, when
prepared by different engineers or by the same engineers at
different times, may vary substantially.
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.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of
these securities, in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of such jurisdiction.
The securities have not been and will not be registered under the
United States Securities Act of 1933, as amended (the "U.S.
Securities Act"), or any state securities laws and may not be
offered or sold within the United
States unless an exemption from such registration is
available.
Advisory Regarding Forward-Looking Statements
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, and drilling and exploration expectations.
These forward-looking statements are based on certain key
assumptions regarding, among other things: our ability to add
production and reserves through our 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.
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 discussed 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.
Not for distribution to U.S. Newswire Services or for
dissemination in the United
States. Any failure to comply with this restriction may
constitute a violation of U.S. securities laws.
SOURCE Petro-Victory Energy Corp.