CALGARY,
AB, April 14, 2022 /CNW/ - Petro-Victory
Energy Corp. ("Petro-Victory" or the "Company") (TSXV: VRY) is
delighted to announce that it has secured 19 new oil and gas blocks
in the Company's core operating area, the Potiguar Basin onshore
Brazil. This acquisition cements
Petro-Victory's status as one of the largest landholders in the
highly petroliferous basin.
Highlights
- The Company secured 19 new blocks in the onshore Potiguar Basin
through its participation in the Agencia Nacional do Petroleo Gas
Natural e Biocombustiveis of Brazil ("ANP") 3rd Oferta
Permanente ("Permanent Offer Round");
- The acquisition of the blocks adds an additional 128,080 acres
(518 sq km) almost doubling (+99%) the Company's existing portfolio
of 19 blocks covering 129,524 acres (524 sq km);
- Upon completion the Company will hold a combined acreage
position of 257,604 acres (1,042 sq km) making it one of the
largest portfolios in Brazil's
most prolific onshore basi
- The new blocks have 3D seismic coverage which the Company has
already successfully sourced from ANP pre-bid allowing the Company
to target specific blocks in its bidding strategy and to fast-track
its future work program;
- In securing this dominant acreage position, the Company has
committed to Work Program Guarantees of US$1,723,402 with total Signing Bonuses of
US$226,943;
Bid Round Success
The Company today announces that it has successfully
participated in the Agencia Nacional do Petroleo Gas Natural e
Biocombustiveis of Brazil ("ANP")
3rd Oferta Permanente ("Permanent Offer Round")
held in Rio de Janeiro, Brazil on
April 13, 2022. Petro-Victory has
been awarded 19 new oil and gas blocks in the Potiguar Basin,
Brazil. This new acquisition will
increase the Petro-Victory Brazil portfolio to 38 blocks (37 of
those blocks in the Potiguar Basin) and represents a 99% increase
in the Company's total acreage. The 19 new blocks cover 128,080
acres (518 sq km) and are located adjacent to Petro-Victory's
operating infrastructure at the Andorinha, Alto Alegre, and Trapia
oil fields allowing for low-cost organic expansion.
In addition, the new acquisitions are adjacent to some of the
largest producing fields in the Basin. The Potiguar Basin covers an
area of approximately 60,000 km2 with over 1 billion
barrels of oil produced onshore from >70 onshore oil fields in
the basin. Onshore Potiguar has almost exclusively been held by
Petrobras until the recent divestiture processes and Permanent
Offer rounds allowing new entrants to enter this highly prolific
Basin. The current oil production from the Potiguar Basin is
~32,000 bopd.
The Permanent Offer Round is a new initiative in Brazil which allows independent E&P
companies to bid on blocks relinquished by Petrobras as they exit
the onshore Brazil upstream
market. The Permanent Offer Round was highly competitive with 79
E&P companies qualified by ANP to participate in the bid
round.
The closure and signing date for the 19 new blocks is expected
in Q4 2022, with the initial signature bonus payable on completion
estimated to be US$227,000 in
addition to US$1,723,402 in work
program related guarantees.
Brazil Portfolio Summary
The Company has announced that it will commence a drilling and
workover program in Q2 2022 on its Andorniha and Sao Joao fields
with 4 new wells and a number of workovers targeting total
production of over 1,000 bopd by year end. Ahead of commencing with
the new drilling and workover program, the Company intends to
release an updated reserve report to the market before the end of
April 2022.
Petro-Victory now holds 38 blocks in the highly prolific
Potiguar Basin focusing on high impact low-risk production drilling
targets. There are 29 historical wells drilled across the 19
new blocks, with the majority of the drilled wells establishing the
presence of oil and gas shows. The blocks have 3D seismic coverage
which the Company has already successfully sourced from ANP. The
immediate work program consists of a re-evaluation of the drilled
wells, reprocessing and mapping of seismic data, followed by
ranking the numerous oil and gas targets across the portfolio to
solidify the drilling and workover program for 2023 and beyond.
Richard F Gonzalez, Petro-Victory CEO
commented:
"Petro-Victory's success in the 3rd Permanent Offer
Round is the culmination of six years of disciplined capital
expenditure, focused work, and execution in Brazil. We now
have one of the largest portfolios in Brazil's most exciting onshore Basin,
materially increasing our drilling inventory, reserves and future
production for many years to come. We appreciate, value and honor
the continued trust placed in us by our shareholder
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.