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CALGARY, Nov. 25, 2019 /CNW/ - Petro-Victory
Energy Corp. (TSX-V: VRY) ("Petro-Victory"
or "Company") is delighted to announce that the
Company has acquired a 50% working interest in 3 onshore oil fields
in the Espírito Santo Basin, Brazil for total consideration of USD 4,686,223. Petro-Victory has paid a 7.5%
deposit of USD 702,933. The remaining
balance of USD 3,983,290 is due upon
approval by the Agencia Nacional do Petroleo Gas Natural e
Biocombustiveis of Brazil ("ANP")
which is expected by the close of H1 2020.
Petro-Victory completed the transaction in a partnership with
Imetame Energia ("Imetame," a subsidiary of Imetame Group) as a
result of the successful contract negotiations within the ongoing
Petrobras divestment process. Upon assignment and final approval
from the ANP, Imetame will be the operator of the Lagoa Parda
fields.
The acquisition includes the Lagoa Parda, the Lagoa Parda Norte,
and the Lagoa Piabanha onshore production concessions (collectively
referred to as "Lagoa Parda Fields") in the State of Espírito
Santo, Brazil. The Lagoa Parda Fields were discovered by
Petrobras in 1978, 139 wells have been drilled and produced a total
of 19 million barrels of oil ("BO") to date. Production in
2019 is expected to average 200 barrels of oil per day ("BOPD")
from 4 wells.
Petro-Victory and Imetame will execute a work program to
increase production to 580 BOPD in the first year of operations.
The initial work program includes bringing online existing 29
wells which were suspended for mechanical reasons and no new
drilling is required to achieve the 580 BOPD in the first year of
full operations. Based upon the combined seismic data
and Petrobras operational data, we believe that the Lagoa Parda
Fields contain significant high-impact low-risk exploration and
development drilling opportunities.
Richard F. Gonzalez, Chief
Executive Officer of Petro-Victory commented, "We are delighted to
expand our successful partnership in the Espírito Santo basin with
our operating partner, Imetame Energia. With the Lagoa Parda Field
purchase, Petro-Victory and Imetame Energia now jointly hold a
total of 8 licenses in a 50-50 partnership (ES-T-354, ES-T-373,
ES-T-441, ES-T-487, ES-T-477, Lagoa Parda, Lagoa Parda Norte, and
Lagoa Piabanha). The Lagoa Parda Fields significantly expand the
Petro-Victory portfolio of oil producing assets in the Espírito
Santo Basin, accelerating our growth in onshore production,
cash flow, and profitability."
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 is a
certified onshore and shallow water operator in Brazil and holds working interests in
twenty-eight (28) licenses totaling 168,433 acres in four (4) oil
producing basins in Brazil, and
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.