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CALGARY, AB, March 23, 2022 /CNW/ - Petro-Victory Energy
Corp. ("Petro-Victory" or the "Company") (TSXV: VRY) is pleased to
provide an operational update on the status of activity on its
portfolio onshore Brazil.
Following completion of the Company's recent private placement,
environmental drilling permits have been secured for a total of 6
development wells from Brazil's
Environmental Agency, Instituto Brasileiro do Meio Ambiente e dos
Recursos Naturais Renováveis (IBAMA). Securing the necessary
environmental permits significantly progresses readiness for the
planned 2022 program of 4 wells and additional workovers at Trapia
and São João and provides further optionality for future
drilling.
Highlights
- Environmental permits secured for 6 drilling locations at
Andorinha field, onshore Brazil;
- Company in advanced negotiations for a drilling rig contractor
to secure a rig to be used for drilling and testing of 4 new wells
at Andorinha and workovers at Trapia and São João;
- Well program at Andorinha targeting proved plus probable
reserves of 485,000 barrels of oil and c.US$16 million of NPV10 value as identified in the
Company's 2020 Reserve Report; and
- Drilling rig contract to run for the remainder of 2022 with
options to extend.
Environmental Permits
The Company has secured drilling permits for 6 development wells
at its Andorinha field in the Potiguar Basin, onshore Brazil. The permits cover the first 3 wells
planned for the 2022 drilling program (PVE-01, PVE-02, PVE-03),
with 3 additional locations also approved (PVE-06, PVE-08, and
PVE-15). The environmental approval for the fourth planned location
for the 2022 drilling program, GALP-06, a re-entry/redrill, is
currently pending and expected shortly.
Environmental permit approvals are a long-lead item for well
operations onshore Brazil
therefore to have these in place significantly de-risks the
timeline for the 2022 drilling campaign. Petro-Victory's long
history in-country, detailed understanding of the permitting
processes and advanced planning has ensured that this critical
hurdle was achieved in good time for drilling and development
activity this year.
Rig Contract
In parallel with progressing the environmental approvals and
since completing the recent private placement, Petro-Victory is now
in advanced discussions to secure a drilling rig for a 4 well
drilling program at Andorinha, targeting a Q2 mobilization to the
field.
The rig will initially be used for drilling and testing of 4 new
wells at Andorinha: PVE-01, PVE-02, PVE-03 and GALP-06 (subject to
environmental permit).
These wells are targeting proved plus probable reserves of
485,000 barrels of oil and c.US$16
million in NPV value, according to the Company's
December 31, 2020 reserve report,
produced by GLJ.
In addition to the development wells planned at Andorinha, the
Company will take the rig to the Trapia field and re-enter up to 3
abandoned wells to evaluate a potential gas discovery. Following
the work at Trapia and Andorinha, and subject to ANP approval,
Petro-Victory will then move the rig to the producing Sao Joao
field in the State of Maranhao to re-enter a number of abandoned
wells in order to increase oil production.
Petro-Victory will update the market upon signing of the rig
contract and provide a firm drilling timetable.
Richard Gonzalez,
Petro-Victory CEO commented:
"I'm delighted to announce these significant steps forward in
relation to our work program for this year. Following on from
securing funding in a significantly oversubscribed private
placement, the Company has now received environmental permits for 6
drilling locations providing a clear milestone to de-risk
operational timelines for our well campaign. It is testament to our
long-standing history in country and the hard work of our team on
the ground in Brazil that we have
been able to secure these time-critical permits. The Company will
now progress with finalizing its contracting arrangements for our
2022 work program and we look forward to updating the market on the
final timetable in due course."
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.
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.
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'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: 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.
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.