Petro Vista to Sell Interest in MorichitoVANCOUVER, BRITISH COLUMBIA, Dec 08, 2011 (MARKETWIRE via COMTEX) -- Petro Vista Energy Corp. ("Petro Vista" or the "Company") (tsx venture:PTV), an independent oil and gas exploration and production company, announces that its wholly-owned Barbados subsidiary, Petro Vista Energy Colombia (Barbados) Corp., has signed an agreement (the "Agreement") with Deep Core Inc. ("Deep Core"), a private Cayman Islands oil and gas company with a focus in Central and South America, for the sale of all of the issued capital of Petropuli Ltda. ("Petropuli"), Petro Vista's indirect wholly-owned Colombian subsidiary. Petropuli owns a 50% participating interest in the Morichito Block located in the Llanos Basin, Colombia.
The sale of Petropuli is the first step in Petro Vista's business plan to rationalize its Colombian oil and gas interests with the goal of focusing on the development of its Tartaruga producing asset in Brazil.
Under the terms of the Agreement, Deep Core will acquire Petropuli for the following consideration:
1. US$1,500,000 cash in closing; 2. US$250,000 cash 90 days from closing (subject to any post-closing adjustment); and 3. the assumption of all of Petropuli's liabilities (US$3.1 million).
The total value of the sale to Petro Vista is approximately US$4.85 million. The sale does not include Petropuli's 25% participating interest in Block SSJN-5 in the Middle Magdelena Basin, Colombia, which will be transferred to a Petro Vista affiliate following closing.
In announcing the transaction, Petro Vista Chairman, Keith Hill commented, "The sale of the Morichito property cleans up our balance sheet and allows us to focus on development of the Tartaruga field and the drilling of two high impact exploration wells in Colombia and Brazil."
The proceeds from the sale will be used to fund continued exploration and development activities on the Tartaruga Field in Brazil including work-overs of the existing producing wells and the addition of down-hole pumps, and pre-drill costs in the SSJN-5 Block in Colombia. Plans are underway to drill at least one exploration well and one additional producing well in the Tartaruga field in Brazil in the first half of 2012.
The Transaction is scheduled to close on December 14, 2011.
The completion of the transaction is subject to all necessary regulatory approvals and approval of the consortium members to the change of control of Petropuli. The Company is in the process of applying for these approvals.
The farm in and corresponding assignment to the Company's Brazilian subsidiary of a working interest in the Tartaruga Block, Brazil is subject to several conditions, including approval from the consortium members and the Agencia Nacional do Petroleo, Gas Natural e Biocombustiveis ("ANP").
About Petro Vista Energy
Petro Vista Energy Corp. is an oil and gas exploration company with near-term production opportunities in South America. The Company has exploration, development and production rights in Brazil and Colombia and Peru. The Company's goal is to build an upstream oil and gas company with exploration and production focused in the highest resource potential and commercially attractive countries in South America. The Company's website at www.pvecorp.com provides additional information about the Company's plans, including photographs and other information with respect to its operations and assets.
ON BEHALF OF PETRO VISTA ENERGY CORP.
Keith Hill, Chairman of the Board of Directors
This press release includes "forward-looking statements" including expectations for future operations that subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company. Statements regarding the Company's plans and expectations for exploration and development of its Tartaruga Block, future growth of the Company, exploration success, future production, reserve additions and capital expenditures are subject to all of the risks and uncertainties normally incident to the exploration for and development and production of oil and gas. These risks include, but are not limited to, inflation or lack of availability of goods and services, environmental risks, drilling, completion and production risks, equipment failure, availability of labor, unexpected geological or other effects, regulatory changes and availability of capital. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. Such forward-looking information represents management's best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. The Company does not assume the obligation to update any forward-looking statement, except as required by applicable law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts: Petro Vista Energy Corp. Investor Relations Toll Free: +1 (877) 427-3876 investor@pvecorp.com www.pvecorp.com