RE: UP Petroleo Brasil Ltda PTV has a working interest with UP that daes back several years and this forms the foundation upon which this play has been devleoped...
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Petro Vista Announces Closing and Funding of its Brazilian Offshore Tartaruga Production and Development Opportunity
October 20, 2009
VANCOUVER, BRITISH COLUMBIA - October 20th, 2009 - (TSX-V:PTV) Petro Vista Energy Corp. ("Petro Vista" or the "Company"), is pleased to announce that it has agreed to farm into and acquire a 37.5% working interest (27.23% net revenue interest) in the shallow offshore and producing oil concession Block SES-107D ("Tartaruga Block") located in Brazil.
The Tartaruga Block is located in Brazil's prolific Sergipe-Alagoas Basin, north-eastern Brazil and currently produces approximately 90 boe/d from one zone in one well which has been on production for over 12 years. This well has multiple pay zones identified on logs that have not yet produced. Based on results of historic production, the existing well rate is anticipated to be increased up to 300-400 boe/d with a planned work-over in November, 2009. Once this work over is completed, Petro Vista will fund the drilling of a side track development well located up dip of the existing producing well targeting the same proven structure
Acquisition Terms
Pursuant to the terms of a Head Farm-Out Agreement dated October 15th 2009 ("Agreement") Petro Vista will acquire a 37.5% working interest (27.23 % net revenue interest) in the Tartaruga Block from UP Petroleo Brasil Ltda., by paying 100% of the costs of drilling and completing a sidetrack development well on the Tartaruga Block (the "New Well") to a maximum cost to Petro Vista of US$5,595,771 and subject to Petro Vista being able to recover any expenditures over US$4,000,000 from approximately 40.8% of initial gross production from this sidetrack well. Any expenditure over US$5,595,771 will be paid on a "head's up" basis with Petro Vista obligated for its 37.5% working interest. Petro Vista has transferred to UP Petroleo Brasil Ltda. US$4,000,000 as an initial contribution of the New Well costs at which point, Petro Vista became entitled to a 27.23% net revenue interest in production from the Block.
The acquisition is subject to receipt of the approval of the Tartaruga Block's consortium members, which consist of UP Petroleo Brasil Ltda., TDC do Brasil Petroleo Ltda. and Petrobras Brasilia S.A.; approval from the Agencia Nacional do Petroleo, Gas Natural e Biocombustiveis ("ANP") to the assignment of the working interest to Petro Vista's wholly-owned subsidiary Petro Vista Petroleo do Brasil Ltda. and all other necessary regulatory approvals including the acceptance of the TSX Venture Exchange.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
How have UP been standing in the way on this issue or any others?
Cal