This is What Ee Are Sitting OnPetro Vista Announces Closing of Brazilian Offshore Tartaruga Block Deal
VANCOUVER, BRITISH COLUMBIA - October 7, 2008 - (TSX-V:PTV) Petro Vista Energy Corp. ("Petro Vista" or the "Company") is pleased to announce that it has closed the acquisition of a 41.3% working interest in the shallow offshore producing oil concession Block SES-107D ("Tartaruga Block") subject to the receipt of all necessary regulatory and corporate approvals.
The Tartaruga Block is located in the prolific Sergipe-Alagoas Basin, in north-eastern Brazil, and has current average production of approximately 250 boe/d from one zone in one well with known additional multiple pay zones. The Company?s share of production commences on September 25, 2008. Production is expected to be increased with a planned work-over of the current producing well prior to the drilling of a sidetrack well into additional producing horizons on the Tartaruga Block. The acquisition is subject to receipt of documentation from the consortium members and approval from the Agencia Nacional do Petroleo ("ANP"). A development plan has been approved by the ANP and includes two to three additional development wells.
Geological Setting
The Tartaruga Block is situated in shallow waters along the north-eastern Brazilian coastline in the Sergipe-Alagoas Basin, Brazil. The original Tartaruga Block discovery well was directionally drilled by Petrobras in 1994 from an onshore location in a four-way structurally closed, offshore target in the Cretaceous Penedo formation sands found at drilled depths of 2,800 to 3,700 meters. Since 1995, this well has cumulatively produced over 637,000 barrels of 42 API gravity oil with average oil production in excess of 250 boe/d and 660 Mcf of gas (gross) from one pay zone, the shallow Penedo-1 sand.
Multiple potential pay zones are known to occur within the Cretaceous Penedo (shallow) and Serraria (deeper) formations. According to published IHS Energy Inc. (Independent Source: HIS Energy Inc.) data the Serraria formation is a proven reservoir in the nearby Caioba field having 27 MMBO and 145 BCF, as well as in the large Carm?polis field, which produces 15 MMBO of the total 330 MMBO in the Serraria.
Estimated Reserves and Prospective Resources
Petrotech Engineering Ltd. prepared an engineering and economic evaluation of the Tartaruga Block in accordance with NI 51-101 with an effective date of March 31, 2008 (summary report available on www.sedar.com). The evaluation conservatively indicates the Penedo formation original petroleum initially in place to be approximately 15 Million stock tank barrels (MMstb) of oil with a potential ultimate recovery of 1.5 MMstb of oil, with remaining Penedo formation reserves in Tartaruga at 2.3 Million Barrels Oil Equivalent.
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Petro Vista Net
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BBL
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NPV10% BTAX
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P1
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91,000 BBL
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P2
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159,000 BBL
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P3
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478,000 BBL
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Sub Total
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728,000 BBL
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$36.65MM
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Prospective Resources
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189,000 BBL
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$7.387 MM
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TOTAL
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917,000 BBL
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$44.04 MM
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The disclosure above includes proven, probable and possible reserves. Possible reserves are those additional reserves that are less certain to be recovered than probable reserves. There is a 10% probability that the quantities actually recovered will equal or exceed the sum of proved plus probable plus possible reserves.
The estimates of reserves and future net revenue for individual properties may not reflect the same confidence level as estimates of reserves and future net revenue for all properties, due to the effects of aggregation.
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And then, following along....
The Company is pleased to announce that the 7-TTG-1DP-SES development well on the Tartaruga Block in Brazil has been successfully drilled to a total depth of 3,445 meters. A total potential net pay interval of 101 feet (31m) minimum case has been identified on electrical logs and by petrophysical analysis. A workover rig will be brought on location immediately in order to conduct completion operations and initiate production within the next two weeks.
Logging and initial petrophysical interpretations on the well identified 9 primary zones of interest. Strong oil gas shows (C1 to C5) identified on mudlog and oil cuttings were observed throughout the reservoir section (2.900m MD to 3,445 MD). The Penedo reservoir P13 interval at a depth of approximately 3,400 m MD will be perforated first during completion. The partnership is evaluating a dual completion to achieve the highest rates possible. The oil from the Tartaruga Field is good quality 41 degree API. Existing production facilities will allow for the immediate commencement of production. Upon successful completion, the 77-TTG-1DP-SES well will be the second well in production on the Block. A workover of the first well SES-107D, is currently being planned which if successful may significantly enhance production levels.