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CALGARY, AB, May 5, 2021 /CNW/ - Petro-Victory
Energy Corp. (TSXV: VRY) ("Petro-Victory"
or "Company") is pleased to update the market on the
acquisition and closure of nine (9) onshore oil concessions in
Brazil. This acquisition adds
63,583 acres to the Company's Potiguar Basin portfolio and will
offer significant oil development to materially increase its
substantial reserves, production and profitability.
Expansion of Portfolio
Petro-Victory has completed the previously-announced purchase of
a 100% working interest in nine (9) onshore concessions in the
prolific, mature oil-producing, Potiguar Basin in North East
Brazil. The POT-T-432, POT-T-434, POT-T-477, POT-T-519, POT-521,
POT-T-564, POT-T-566, POT-T-650, and Trapiá concessions, were
originally owned by Petrobras. While not in production today,
they add a diversified mix of oil and gas field development,
appraisal, and exploration opportunities to the Petro-Victory
portfolio in Brazil.
This acquisition has been approved by the Agencia Nacional do
Petroleo Gas Natural e Biocombustiveis of Brazil ("ANP") and the concession contracts
for POT-T-519, POT-521, POT-T-564, POT-T-566, POT-T-650, and Trapiá
were executed on March
2nd, 2021. The signing ceremony for POT-T-432,
POT-T-434, and POT-T-477 is scheduled for June 7th 2021. Petro-Victory was
provisionally awarded these concessions for a cost of R$2,135,802 (~US$393,000) in the Oferta Permanente, which was
the first ANP bid round in its history that did not include
Petrobras, and where Petro-Victory was the largest winner.
Technical Evaluation
The Petro-Victory technical team has purchased and is
reprocessing 3D seismic and evaluating well data and is currently
ranking various development prospects. This work is expected to
result in material drill ready, low risk, high impact development,
appraisal, and exploration prospects across the newly-acquired
acreage.
It is management's opinion that there will be material
commercial oil accumulations developed and produced from the
existing wells inside the concessions. There are nineteen (19)
wells drilled across the former Petrobras concessions, and a full
evaluation of the well data has commenced to identify the oil and
gas zones in these well bores. Several wells have strong
evidence of both oil and gas accumulations (with some of the wells
successfully testing oil and gas to surface). Petro-Victory is
interpreting the seismic and well data and will work to identify
and quantify additional reserves over these concessions to increase
the Company's previously-announced certified reserves.
Additional Acquisitions
The company is also in the process of closing seven (7)
additional onshore, former Petrobras, concessions in the Potiguar
Basin with ANP. On final closing and execution of the concession
contracts, an update will be given to the market.
Petro-Victory has identified the mature oil-producing Potiguar
Basin as a core area for the Company, and is currently the third
largest landholder in this prolific hydrocarbon basin. Over 1
billion barrels of oil have been produced onshore since the first
discovery was made in 1979 and the majority of exploration wells
were drilled between 1980-1990. Current daily oil
production across the Potiguar Basin is ~50,000 BOPD.
Richard F. Gonzalez, Chief
Executive Officer of Petro-Victory commented, "I am pleased with
our latest portfolio expansion. This acquisition of former
Petrobras concessions, complements and adds to our portfolio of
producing, low risk, high impact, cash flow positive assets.
We believe this acquisition will materially aggregate
significant, profitable production, increase our robust certified
reserves and thus, continue to enhance shareholder value."
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 upon final closing, will hold
working interests in twenty (20) licenses totaling 129,771 acres in
three (3) oil producing basins in Brazil. 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.