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CALGARY, AB, Oct. 19, 2021 /CNW/ - Petro-Victory Energy
Corp. ("Petro-Victory" or the "Company") (TSXV: VRY.V) is delighted
to provide an operational update on activities on its northern
Brazil assets, located in the
Potiguar and Barreirinhas basins.
Highlights
- Completion of the acquisition of the remaining 7 of 16 onshore
oil concessions from the 2019 ANP Permanent Offer round
- Drilling program advancing at Andorinha oil field with an
expected production addition of 520 BOPD in 2022
- Workover program is underway to increase base production in the
Potiguar basin
- Three-well workover program within the São João oil field
planned in H1 2022 expected to increase field production to >200
BOPD
Expansion of Portfolio
Petro-Victory was provisionally awarded sixteen (16) concessions
in the 2019 Permanent Offer auction making the Company the largest
winner in what was the first bidding round in the history of the
Agencia Nacional do Petroleo Gas Natural e Biocombustiveis of
Brazil ("ANP") that did not
include Petrobras. The Company previously announced on May 5, 2021 that nine (9) of the concessions
closed on May 2, 2021 and the
remaining seven (7) concessions have now closed, effective
September 22nd 2021. The
closure of this acquisition solidifies an additional 53,322 acres
within the Company's Potiguar basin portfolio and materially
increases the Company's oil development inventory enabling the
Company to increase its reserves, production, and
profitability.
The transaction for these seven (7) concessions, POT-T-392,
POT-T-433, POT-T-476, POT-T-478, POT-T-603, POT-T-651, and
POT-T-652, was at a cost of R$1,500,415 (~US$288,000). The Company has now satisfied all
of its acquisition commitments to claim its 100% working interest
across the portfolio of sixteen (16) Permanent Offer onshore
concessions in the Potiguar Basin covering 116,904 acres for an
acquisition cost of R$3,636,217
(~US$698,000) and Financial
Guarantees of R$5,608,800
(~US$1,077,000).
Andorinha Field (100% Working Interest) - Future Drilling
Program
Petro-Victory is now preparing to execute a four-well drilling
program within the Andorinha field. Each well is expected to add an
average of 130 BOPD of production (520 BOPD total) over their first
twelve months of production as detailed in the previously announced
(May 3, 2021) GLJ independent reserve
report dated December
31st, 2020 ("GLJ Reserve Report"). Timing of the
new drilling is subject to environmental permitting, additional
funding, purchase and delivery of long lead items, and securing a
suitable drilling rig. The Company currently estimates that
drilling will commence in May
2022.
As noted in the GLJ Reserve Report, the Company has a
development drilling work program which consists of sixteen (16)
new development wells over the life of the Andorinha field to
produce 1,987,000 barrels of oil with an NPV10 of US$63,614,000 on an audited 2P basis.
Andorinha and Alto Alegre Fields (100% Working Interest) -
Workovers of Legacy Wells
Upon taking over field operations in November 2020, the Petro-Victory operations' team
has been in-place and production operations from legacy wells have
remained safe and profitable during this time. In the first half of
the 2021, the Andorinha field produced an average of 12 BOPD from
three (3) of these wells.
Following a mechanical failure in one of the producing wells at
Andorinha, production at the field dropped and the Company sourced
a workover rig to re-enter and resolve the issue, and to re-enter
and test existing wells within the production concessions.
Following this corrective action, production from the Andorinha and
Alto Alegre fields is now averaging 27 BOPD, with all oil processed
and sold through the existing field facilities at Andorinha.
São João Field (50% Working Interest, Increasing to 100%) -
Future Workovers
As originally announced on August
3rd, 2021, Petro-Victory has acquired the
remaining 50% working interest in the São João oil field. The
acquisition remains subject to final ANP approval.
The São João field is currently producing 24 BOPD from three (3)
wells (SJ-01, SJ-06, SJ-11). Workovers are planned over these
producing wells in 2022. There are five (5) additional oil zones to
perforate and bring online at the SJ-01 well, three (3) additional
oil zones at SJ-06, and seven (7) additional oil zones at SJ-11.
The three (3) workovers are expected to add an average of 65 BOPD
each to Petro-Victory's production over the first 12 months of
production (according to the GLJ Reserve Report), increasing
production from São João to >200 BOPD.
Sixteen (16) Permanent Offer Potiguar Concessions (100%
Working Interest) - Forward Plan
The Petro-Victory portfolio in the Potiguar basin, northeast
Brazil, now consists of eighteen
(18) 100% working interest concessions, with production coming
presently from the company's 100% owned Andorinha field. For the
sixteen (16) Potiguar concessions not in production today, the
Petro-Victory technical team has purchased and loaded all available
3D seismic data and is currently finalizing their initial
interpretations. This interpretation, in addition to the evaluation
of existing well data across the assets, will be complete by
year-end and will identify drilling and workover inventory across
the portfolio.
The Company is also proceeding with using modern seismic
processing techniques to improve the image quality of the seismic
data, thereby significantly de-risking any future drilling
opportunities. The first 3D survey is expected to be complete in
early 2022. Progress on the 3D seismic processing project will not
influence the initial ranking of development/appraisal/exploration
opportunities planned for year-end.
Richard Gonzalez,
Petro-Victory CEO commented:
"Activity is ramping up across the portfolio, capturing
'low-hanging-fruit', with workovers that pay for themselves in a
couple of months as we await environmental permits to commence our
drilling program in Andorinha.
Petro-Victory has a solid asset base, cash flow from legacy
wells and upside towards 2P NPV10 of US$114
million on two of its nineteen concessions (Andorinha and
Sao Joao), based on the GLJ Reserve Report. With the completion of
the sixteen Permanent Offer concessions, Petro-Victory is
positioned to materially increase production and reserves within
the next 12 months."
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 100%
operating and working interests in nineteen (19) licenses totaling
129,524 acres in two (2) different 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.