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CALGARY, Oct. 16, 2019 /CNW/ - Petro-Victory Energy Corp.
(TSX-V: VRY) ("Petro-Victory" or "Company") is delighted to
announce that Petro-Victory has received final approval from the
Agencia Nacional do Petroleo Gas Natural e Biocombustiveis of
Brazil ("ANP") for Petro-Victory
to acquire its initial working interests in Brazil.
As previously announced, the Company executed a contract for the
$1.6 million acquisition of
production and working interests in four (4) oil field concessions
and stated its commitment of capital to materially expand
production. The four fields are comprised of 12,850 gross acres
located within three developed onshore basins in Brazil.
The acquisition consists of the following:
100% working interest in the
Andorinha onshore producing oil field in the Potiguar Basin
100% working interest in the Alto Alegre onshore oil field in the
Potiguar Basin
50% working interest in the Carapitanga producing onshore oil field
in the Sergipe-Alagoas Basin
50% working interest in the São João onshore oil field in the
Barreirinhas Basin
The acquired assets include existing infrastructure consisting
of 21 drilled wells, pipelines, power generation and electrical
lines, pumping units, paved roads, storage tanks, and extensive 3D
and 2D seismic. Existing seismic and well data have been used to
develop a 24-month work program. The total (Q2 2019) average
production of 24 barrels of oil per day is from four mature wells
in the two producing fields of Andorinha and Carapitanga. With the
completion of the acquisition, Petro-Victory immediately recognizes
production revenue, initiates its 2019 work program, and will start
to materially increase production.
The Company acquired the assets from ENGEPET and has an
operating partnership with ENGEPET to optimize field production for
Carapitanga and Sao Joao fields. For the operations and development
of the Andorinha and the Alto Alegre fields (100% working
interest), Petro-Victory has a service agreement with ENGEPET to
allow for the continuing operations and ability to immediately
commence executing our work program.
Petro-Victory's second acquisition, previously announced
October 26, 2018, of five (5)
exploration concessions located in the Espirito Santo Basin onshore
Brazil, is expected to receive ANP
approval in Q4 2019.
Richard F. Gonzalez, Chief
Executive Officer of Petro-Victory commented, "The completion of
this acquisition establishes Petro-Victory's foothold in the
Brazilian onshore oil and gas community. The extensive
partnerships, processes, and business structures established during
this acquisition and approval process provide Petro-Victory with a
solid foundation to accelerate our growth. We will be updating the
market shortly on our next acquisitions, and the exciting work
program to rapidly expand Petro-Victory's production and reserves
at these four oil fields."
About Petro-Victory Energy Corp.
Petro-Victory Energy Corp. is engaged in the acquisition,
development, and production of crude oil and natural gas resources
in Brazil. The company holds
operating and working interests in twenty-five (25) licenses
totaling 164,366 acres in four (4) different producing basins in
Brazil, and a royalty agreement in
a 2-million-acre concession in Paraguay. Petro-Victory generates accretive
shareholder value through disciplined investments in high impact,
low risk assets. The Company's Common Shares trade on the TSX
Venture Exchange ("TSXV") under the ticker symbol VRY.v.
Cautionary Note
Neither the TSXV nor its
Regulation Services Provider (as that term is defined in the
policies of the TSXV) accepts responsibility for the adequacy or
accuracy of this release.
Advisory Regarding Forward-Looking Statements
In the interest of providing Petro-Victory's shareholders and
potential investors with information regarding 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: the Company offerings,
our business strategies, plans and objectives, and drilling,
testing 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 labor 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.
SOURCE Petro-Victory Energy Corp.