/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./
CALGARY, March 3, 2015 /CNW/ - Petro-Victory Energy Corp.
("Petro-Victory" or the "Company") (VRY.V)
On December 1, 2014 Petro-Victory
delivered a notice of audit to President Energy (the "Operator")
for the years 2013 and 2014, amidst concerns over the alleged
continuing cash demands from the Operator in excess of the approved
work program and budget. The Company engaged experts skilled
in the art of such audits who began their analysis of the project
electronic records during the first week of January 2015.
Simultaneously, the Company initiated a detailed review of drilling
techniques and Operator field decisions that led to
Overexpenditures and inadequate logging and well testing.
Pursuant to, but not limited to the aforementioned audit and
technical review results, management and the Board of Directors of
Petro-Victory have caused the Company's wholly owned Paraguayan
subsidiary, Pirity Hidrocarburos S.R.L. ("Pirity") to seek
injunctive relief barring the Operator from certain actions
relating to Hydrocarbon Concession Law 3,479/08 (the "Pirity
Block") in accordance with the Paraguayan Civil Code of Procedure's
Preliminary Findings Process ("Diligencias
Preparatorias").
Injunctions granted by the Courts of the Republic of
Paraguay on March 2, 2015 are preventive in nature and take
two forms:
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An injunctive
Prohibition to Innovate, which prohibits alteration of legal or
factual states-of-affairs with respect to the Pirity Block;
and
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An injunctive
Prohibition to Contract, which prohibits the addressee of the
prohibition (the Operator) from entering into contractual
agreements of any form whatsoever, with respect to the Pirity
Block.
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Such prohibitions preserve the status quo participation of
Petro-Victory and the Operator in the Pirity Block throughout the
Preliminary Findings and adjudication processes, the subject of
which Petro-Victory anticipates shall be:
1)
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Legal action seeking
the disgorgement of Operator's 59% Participating Interest in the
Pirity Block for failure to perform certain obligations in
accordance with Paraguayan Hydrocarbon Law 779/95, and the
reversion of such Participating Interest to Petro-Victory's
subsidiary, Pirity;
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2)
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Legal action seeking
the removal of President Energy as the Operator of the Pirity Block
and reversion of Operatorship to Petro-Victory's subsidiary,
Pirity; and
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3)
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Legal action seeking
an award for damages in favor of Pirity.
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Petro-Victory's Chief Executive Officer, Richard F. Gonzalez commented:
"We firmly believe that Paraguay's hydrocarbon province is of great
commercial scale and merely awaits development. We look
forward to the timely adjudication of the matters at hand."
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", "shall" 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.