VRY announces the Closing of the Acquisition of 19 Blocks CALGARY, AB, Nov. 29, 2022 /CNW/ - Petro-Victory Energy Corp. ("Petro-Victory" or the "Company") (TSX: VRY) is pleased to announce that it has signed binding concession contracts in connection with the previously announced nineteen (19) Block acquisition in the Potiguar Basin, onshore Brazil.
Highlights
- The Company has closed the acquisition of nineteen (19) new blocks in the onshore Potiguar Basin through its participation in the Agencia Nacional do Petroleo Gas Natural e Biocombustiveis of Brazil ("ANP") 3rd Oferta Permanente ("Permanent Offer Round");
- Petro-Victory has a 100% working and operated interest in all nineteen (19) new blocks;
- The acquisition of the blocks adds an additional 128,080 acres (518 sq km) almost doubling (+99%) the Company's existing portfolio of 19 blocks covering 129,524 acres (524 sq km);
- The Company holds a combined acreage position of 257,604 acres (1,042 sq km) with 100% working and operated interest, making it one of the largest portfolios in Brazil's most oil prolific onshore basin;
- The Company has placed cash deposits for work program guarantees of US$1,578,988 and paid total Signing Bonuses of US$218,982;
As previously announced on April 14th 2022, the Company successfully participated in the ANP Permanent Offer Round held in Rio de Janeiro, Brazil on April 13, 2022. Petro-Victory was awarded nineteen (19) new oil and gas blocks in the Potiguar Basin, Brazil which increased the Petro-Victory Brazil portfolio to thirty-eight (38) blocks (thirty-seven (37) of those blocks in the Potiguar Basin) and represented a 99% increase in the Company's total acreage. The nineteen (19) new blocks cover 128,080 acres (518 sq km) and are located adjacent to Petro-Victory's operating infrastructure at the Andorinha, Alto Alegre, and Trapia oil fields allowing for low-cost organic expansion.
In addition, the new acquisitions are adjacent to some of the largest oil producing fields in the Potiguar Basin. The Potiguar Basin covers an area of approximately 60,000 sq km with over 1 billion barrels of oil produced onshore from greater than seventy (70) onshore oil fields in the basin. Onshore Potiguar has almost exclusively been held by Petrobras until the recent divestiture processes and permanent offer rounds allowing new entrants to enter this highly oil prolific Basin. The current oil production from the Potiguar Basin is approximately 32,000 bopd.
All required payments (signature bonus, work program guarantees) have been made by the Company, with the signing of the final binding concession contracts occurring on the 21st November, 2022 at a signing ceremony in Rio de Janeiro, Brazil.
The nineteen (19) new blocks have 3D seismic coverage, which the Company had already successfully sourced from ANP, allowing the Company to target specific blocks in its bidding strategy and to fast-track its future work program. The new concession contracts allow for a 5-year work program, and the Company expects to start drilling operations on the new acreage from 2023 onwards.
Richard F. Gonzalez, Petro-Victory CEO commented:
"We now have one of the largest portfolios in Brazil's most prolific oil producing onshore Basin, materially increasing our drilling inventory, reserves and future production for many years to come. Our technical team have been working diligently identifying, quantifying and qualifying drilling targets on our new nineteen (19) blocks and are planning to start drilling operations on these assets in 2023."
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.