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CALGARY,
AB, April 4, 2022 /CNW/ - Petro-Victory Energy
Corp. ("Petro-Victory" or the "Company") (TSXV: VRY) is pleased to
announce the signing of a drilling and workover rig contract for
its multi-well program, with mobilization and drilling of the first
well of the 2022 program to commence in late Q2 2022.
Highlights
- Company has signed an exclusive 8-month rig contract with
Mapeen Engenharia e Manutenção for the provision of the MAPEEN-01
drilling rig;
- MAPEEN-01 is a 1000 horsepower rotary drilling rig with the use
of top drive and is capable of drilling down to at least
1800m;
- MAPEEN-01 rig provides Petro-Victory with required flexibility
as the rig can be configured for both drilling and workovers;
- Contract includes a flexible day-rate depending on rig use for
drilling or workovers, significantly improving cost and operational
flexibility;
- Initial 8-month contract period to commence on mobilization of
the MAPEEN-01 rig to the first well location (PVE-01); and
- Rig will be used for drilling and testing of 4 new wells at the
Andorinha field before executing a workover program on the Trapia
and São João fields.
Rig Contract
The Company has concluded its competitive tendering process and
executed an agreement with Mapeen Engenharia e Manutenção for the
provision of the MAPEEN-01 rig to execute its multi-well
development well and workover program in 2022 with rig mobilization
expected in early H2 2022 for an 8-month period.
To maximize efficiency of the drilling campaign, Petro Victory will mobilize a smaller rig to
location in May 2022 to batch drill
and case the top-hole sections of the 4 wells at Andorinha.
Executing the program in this manner will lower the well costs and
significantly improve the expected timelines for delivery of the
wells.
The MAPEEN-01 will initially be used for drilling and testing of
four new wells at Andorinha: PVE-01, PVE-02, PVE-03 (all locations
environmentally permitted) and GALP-06 (subject to environmental
permit). Together, these wells account for proved plus probable
reserves of 485,000 barrels of oil and US$16
million in NPV10 value, according to the Company's
December 31, 2020 reserve report,
produced by GLJ. Each well is estimated to take between 25-30 days
to drill at an estimated cost of US$600,000 and leverage existing production
facilities on the Andorinha field. Given the recent rise in
commodity prices, Petro Victory's
crude trading in the domestic market benchmarked to Brent and the
attractive fiscal terms for onshore Brazilian production, the
Company expects payout on these wells within 60 days.
Following the execution of the four well program at Andorinha,
the MAPEEN-01 will then carry out a program of workovers at Trapia
and São João. During workover operations a lower rig rate will
apply, providing greater operational flexibility, significantly
lowering the cost of the program and improving the economics of the
individual workovers.
Richard
Gonzalez, Petro-Victory CEO commented:
"The signing of the Mapeen Engenharia e Manutenção rig contract
is a significant step in Petro-Victory's operational plan to
deliver its fully funded multi-well program this year.
We are excited to be entering an operationally intensive period
to drive significant shareholder value by bringing on additional
production from low-cost and low risk drilling locations across our
portfolio."
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.