VRY: 98% increase in 2P Reserve of 4.518 Million Barrels! CALGARY, AB, April 26, 2022 /CNW/ - Petro-Victory Energy Corp. ("Petro-Victory" or the "Company") (TSXV: VRY) is delighted to announce a 98% increase of its before tax value discounted at 10% ("PV10 Valuation") net 2P reserves from USD$90.4 million in year-end 2020 to USD$178.7 million in year-end 2021.
As of December 31, 2021, total proved plus probable ("2P") reserves of 4.5 million barrels of oil and a PV10 Valuation of CAD$223.4 million (USD$178.7 million) has been assigned to the company for the Andorinha, Sao Joao, Alto Alegre, and Trapia fields in Brazil. This represents a 2P Net Asset Value of CAD$12.46/share on an undiluted basis (17,929,139 shares in issue today). The reserves data set forth herein is based on an independent reserve assessment and evaluation prepared by GLJ, Ltd. dated April 21, 2022 with an effective date of December 31, 2021 ("The Reserve Report").
Reserve Report Highlights:
- Proved Reserves ("1P"), Proved Plus Probable Reserves ("2P"), and Proved Plus Probable Plus Possible Reserves ("3P") were calculated for four (4) of the Company's thirty-eight (38) oil blocks.
- Net 1P Reserves of 2,212,000 Barrels of Oil with a PV10 Valuation of CAD$105,997,500 (USD$84,798,000) or CAD$5.91/share. A value increase of 144% compared to the previous year.
- Net 2P Reserves of 4,518,000 Barrels of Oil with a PV10 Valuation of CAD$223,412,500 (USD$178,730,000) or CAD$12.46/share. A value increase of 98% compared to the previous year.
- Net 3P Reserves of 6,414,000 Barrels of Oil with a PV10 Valuation of CAD$310,080,000 (USD$248,064,000) or CAD$17.29/share. A value increase of 95% compared to the previous year.
Richard F. Gonzalez, Chief Executive Officer of Petro-Victory commented,
"The new Reserve Report, covering only four (4) of our thirty-eight (38) oil blocks in Brazil, continues to affirm Petro-Victory's strategy of building consistent shareholder value by applying our focused technical and operational discipline in the identification of additional reserves for development and production across our portfolio of high-impact / low-risk onshore oil blocks.
Our operations are generating ongoing positive cash flow as we are executing the 2022 drilling and work-over program to notably increase our oil production, cash flow and profitability. I look forward to updating the market as operations progress."
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 thirty-eight (38) oil blocks totaling 257,604 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.