CALGARY, AB, Oct. 24, 2022 /CNW/ - Petro-Victory Energy Corp. ("Petro-Victory" or the "Company") (TSX-Venture Symbol: VRY) is pleased to provide an operational update on the Company's 100%-owned Alto Alegre Field in the Potiguar Basin, onshore Brazil.
Highlights:
- Petro-Victory completed the purchase of the Alto Alegre oil field concession for US$50,000 and assumed 100% operated interest in Q4 2020. At the time of purchase, there was one abandoned oil well inside the concession (ALG-01), the field was not in production, and there were no facilities in place.
- In Q4 2021, the Company recovered the abandoned ALG-01 well and re-entered the well for production testing. Two successful oil tests were carried out at reservoirs at depths of 2,274m and 2,360m. The ALG-01 well was then suspended in preparation for commercial production and the installation of production facilities, oil storage, road access, and base construction.
- Following the intervention, the Company conducted a full subsurface review consisting of reprocessing the available seismic data and integrating the existing well and reservoir data into the updated subsurface model, which concluded with a revised full field development program for the Alto Alegre field. This development plan was then sent to our independent reserve auditors, GLJ, for assessment.
- The independent auditors assigned a total of 493,000 barrels of 2P oil reserves at a PV10 value of US$18MM. Providing the Company with a 360x return on initial purchase price.
- The Alto Alegre field has historically produced 11,000 barrels of oil (1993-1997) from one (1) well, and remains in early stages of primary recovery with 493,000 barrels of 2P oil reserves to recover over the life of the field. A drilling program will commence in 2023 to achieve greater than 300 BOPD on a 2P basis.
- In September 2022, the Company completed a mechanical intervention at the ALG-01 well and placed the well on production using a pumpjack to provide artificial lift. The well is now averaging production of 18 BOPD and has produced more than 1,000 barrels of oil since Petro-Victory resumed production.
- With a five percent (5%) Royalty and low base operating expense costs, The Alto Alegre field is currently netting back US$84 (profit per barrel of oil) at an oil sales price of US$94 a barrel of oil.
Richard F. Gonzalez, Petro-Victory CEO commented:
"The Alto Alegre field is another example of how we continue to generate significant value for our shareholders, executing our strategy of purchasing and commercializing high impact, low risk assets in our portfolio of thirty eight (38) oil field concessions totaling 257,604 acres in Brazil."
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) licenses 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.