CALGARY,
AB, Sept. 5, 2024 /CNW/ - Petro-Victory Energy
Corp. ("Petro-Victory" or the "Company" or "PVE") (TSXV: VRY)
provides an operations update to the shareholders.
2024 Advancement Highlights:
- São João Field, 3-well, workover campaign was completed in
April 2024, total oil sales volumes
for the three months ended June 30,
2024 was 5,814 bbls up 99% from prior quarter.
- Best Estimate - Development Pending Risked Contingent Gas
Resources located at the São João Field added 50.1 billion cubic
feet (1.4 billion cubic meters) of gas or 8.4 million barrels of
oil equivalent ("MMboe") and NPV10 USD $97.3 million.
- The Company updated its reserve report with 6.9 MMboe and
NPV10 USD $257.7 million
($40.05/boe) 2P reserves.
- The Company announced a partnership with Azevedo Travassos
Petróleo S/A ("ATP") to develop the Andorinha field and Block
281.
Partnership with Azevedo Travassos Petróleo
Block 281: Petro-Victory will re-enter and perform a
workover on the CR-2 well in Block 281. The workover will commence
in October as part of the ATP Partnership. ATP will pay 100% of the
workover program and recover the cost through the net income
generated by the production of the CR-2 well: 75 percent ATP and 25
percent PVE, after which, the two companies will split the net
income generated by the production 50/50.
Andorinha Field: Petro-Victory will drill two additional
in-field wells at the Andorinha field beginning in December through
the ATP Partnership, ATP will pay 100% of the drilling work program
and recover cost through the net income generated by the production
of the two wells: 75 percent ATP and 25 percent PVE, after which,
the two companies will split the net income generated by the
production 50/50.
Commercial Outlook: Upon the completion of and based on the
results of the CR-2 workover and the Andorinha drilling program, a
new reserve report will be obtained, and ATP will have the option
to purchase 50% ownership in the Andorinha field and Block 281 at a
price of USD $10 per proven barrel
and USD $4 per probable barrel. The
option to purchase must be exercised within nine months following
the completion of the work program.
High Impact Exploration:
Drilling Prospects: Six additional high-impact exploration
drilling prospects have received environmental and drilling
licenses. A new prospective resource report will be completed in
September. The Company is carefully evaluating all options for
financing the high-impact exploration drilling prospects including
but not limited to strategic partnerships or equity
investments.
Acquisition of Mature Fields:
Collaboration with international group: In August, Petro-Victory
entered into an MOU ("Memorandum of understanding") Collaboration
with XP Group, an international oil and gas operator, to evaluate,
acquire, and enhance production in mature oil and gas fields in
Latin America. This collaboration
further strengthens Petro-Victory's position to increase production
through the acquisition of mature producing fields across
Latin America.
Message to shareholders
Richard F. Gonzalez, CEO of
Petro-Victory Energy Corp. commented: "With the completion of the
three-well workover program at the São João Field, total oil sales
volumes for the three months ended June 30,
2024 was 5,814 bbls, an increase of 99% over the first
quarter 2024 sales volumes. The São João Field had no production,
no reserve report, and no facilities prior to Petro-Victory
entering in April 2020. The field has
since produced more than 50,000 barrels of oil and has 1.9 MMboe in
2P Reserves and Best Estimate - Development Pending Risked
Contingent Gas Resources of 8.4 MMboe.
"Consolidated production from the São João, Andorinha, and
Trapiá fields during the second quarter averaged 64 barrels of oil
per day (bopd) and generated an average of USD $144 thousand in oil revenues per month with an
average netback per month in the quarter of USD $72 thousand or USD $37.08 per barrel representing a 50% margin. In
July and August we have averaged 48 bopd.
"Production growth continues to be a priority for Petro-Victory
and future production volumes are expected to increase
disproportionately from production expense as the Company executes
on the development plan in the second half 2024 and beyond, thus
decreasing the production cost per barrel and increasing operating
netback margins.
"The Company has focused on establishing strategic partnerships
and joint ventures during the period with an emphasis on monetizing
existing assets and reserves.
"The ATP partnership is progressing exceptionally well. The
teams' combined experience and expertise are highly complementary.
The synergies not only enhance our current projects but also opens
up numerous opportunities for future growth. By leveraging our
collective strengths, we can operate more effectively and drive
greater value for both organizations.
"Furthermore, the Company is also evaluating opportunities to
increase production through the acquisition of mature fields in
Brazil and LATAM which would be
complementary to our existing high-growth portfolio."
Summary Reserves and Resources
As announced in the press release dated May 9, 2024, the Company's Independent Reserve
and Resource Report as of December 31,
2023 and issued by GLJ, Ltd. dated April 25, 2024 ("GLJ Report") added development
pending risked contingent resources of 8.4 MMboe. The GLJ Report is
summarized below.
The Company holds 100% working interest in thirty-eight (38)
concessions. Six (6) of the thirty-eight (38) concessions have
reserves included in the GLJ Report. The Company continues to
invest geological and geophysical resources in further evaluation
of the remaining thirty-two (32) blocks. The additional thirty-two
(32) concession blocks are not included in the reserve figures
below.
- Proved ("1P") reserves:
- 3,434 thousand barrels of oil equivalent ("Mboe"); and
- Net present value before tax, discounted at 10%
("NPV10") is USD $130.5
million ($40.68/boe) for
1P reserves.
- Proved plus Probable ("2P") reserves:
- 6,873 Mboe; and
- Before tax NPV10 is USD $257.7 million ($40.05/boe) for 2P reserves.
- Proved plus Probable plus Possible ("3P") reserves:
- 10,116 Mboe; and
- Before tax NPV10 is USD $368.5 million ($38.91/boe) for 3P reserves.
- Development Pending Risked Contingent Resources – Best Estimate
- 8,359 Mboe; and
- Before tax NPV10 is USD $97.3 million
Furthermore, the Company has identified 16 opportunities across
12 of the other blocks. Of these, 7 opportunities represent
economically viable prospects. The Company will have a prospective
resources report completed in the coming weeks for the first four
(4) initial prospects.
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 TSXV under the ticker symbol VRY.
Cautionary Note
Neither the TSXV nor its Regulation Services Provider (as that
term is defined in the policies of the TSXV) accepts responsibility
for the adequacy or accuracy of this release.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of
these securities, in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of such jurisdiction. The
securities have not been and will not be registered under the
United States Securities Act of 1933, as amended (the "U.S.
Securities Act"), or any state securities laws and may not be
offered or sold within the United
States unless an exemption from such registration is
available.
Advisory Regarding Forward-Looking Statements
In the interest of providing Petro
Victory's shareholders and potential investors with
information regarding Petro
Victory's future plans and operations, certain statements in
this press release are "forward-looking statements" within the
meaning of the United States Private Securities Litigation Reform
Act of 1995 and "forward-looking information" within the meaning of
applicable Canadian securities legislation (collectively,
"forward-looking statements"). In some cases, forward-looking
statements can be identified by terminology such as "anticipate,"
"believe," "continue," "could," "estimate," "expect," "forecast,"
"intend," "may," "objective," "ongoing," "outlook," "potential,"
"project," "plan," "should," "target," "would," "will" or similar
words suggesting future outcomes, events or performance. The
forward-looking statements contained in this press release speak
only as of the date thereof and are expressly qualified by this
cautionary statement.
Specifically, this press release contains forward-looking
statements relating to, but not limited to, our business
strategies, plans and objectives, and drilling, testing, and
exploration expectations. These forward-looking statements are
based on certain key assumptions regarding, among other things, our
ability to add production and reserves through our exploration
activities; the receipt, in a timely manner, of regulatory and
other required approvals for our operating activities; the approval
by the TSXV of the Market Maker Agreement; the availability and
cost of labor and other industry services; the continuance of
existing and, in certain circumstances, proposed tax and royalty
regimes; and current industry conditions, laws and regulations
continuing in effect (or, where changes are proposed, such changes
being adopted as anticipated). Readers are cautioned that such
assumptions, although considered reasonable by Petro Victory at the time of preparation, may
prove to be incorrect.
Actual results achieved will vary from the information provided
herein as a result of numerous known and unknown risks and
uncertainties and other factors.
The above summary of assumptions and risks related to
forward-looking statements in this press release has been provided
in order to provide shareholders and potential investors with a
more complete perspective on Petro
Victory's current and future operations, and such
information may not be appropriate for other purposes. There is no
representation by Petro Victory that
actual results achieved will be the same in whole or in part as
those referenced in the forward-looking statements, and
Petro Victory does not undertake any
obligation
to update publicly or to revise any of the included
forward-looking statements, whether as a result of new information,
future events or otherwise, except as may be required by applicable
securities law.
Oil and Natural Gas Reserves
The disclosure in this news release summarizes certain
information contained in the GLJ Reserves and Resources Report but
represents only a portion of the disclosure required under National
Instrument 51-101 ("NI 51-101"). Full disclosure with respect to
the Company's reserves as at December 31,
2023 is contained in the Company's Form 51-101F1 for the
year ended December 31, 2023 which
has been filed on SEDAR+ (www.sedarplus.com) as part of the Annual
Information Form. All net present values in this press release are
based on estimates of future operating and capital costs and GLJ's
forecast prices as of December 31,
2023 and have been made assuming the development of each
property in respect of which the estimate is made will occur,
without regard to the likely availability to the reporting issuer
of funding required for that development. The reserves and resource
definitions used in this evaluation are the standards defined by
the Canadian Oil and Gas Evaluation Handbook (COGEH) reserve
definitions, are consistent with NI 51-101 and are used by GLJ. The
net present values of future net revenue attributable to the Petro
Victory's reserves and resources estimated by GLJ do not represent
the fair market value of those reserves. Other assumptions and
qualifications relating to costs, prices for future production, and
other matters are summarized herein. The Company's reserves volumes
and the contingent resource volumes should not be read as a
combined total due to the different levels of uncertainty and
inherent risks associated with both classifications of recoverable
volumes. The recovery and reserve estimates of the Company's
reserves and resources provided herein are estimates only, and
there is no guarantee that the estimated reserves will be
recovered. Actual reserves and resources may be greater than or
less than the estimates provided herein. 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.
With respect to the development pending risked contingent
resources, there can be no certainty that the project will be
developed on the timelines outlined within reserve and resource
report. There is uncertainty that it will be commercially viable to
produce any portion of the resources. The development of the
project is dependent on several contingencies as described.
Significant positive factors relevant to the estimate include
existing test logs of the gas in the field and corporate commitment
to the project. Significant negative factors relevant to the
estimate include the economic viability of the project (with
sensitivity to low commodity prices), access to commitment
from future partners and/or amount of capital required to develop
resources at an acceptable cost, and regulatory approvals for
planned activities including stimulations and new infrastructure
developments.
BOE Disclosure
The term BARRELS OF OIL EQUIVALENT ("boe") may be misleading,
particularly if used in isolation. A boe conversion ratio of six
thousand cubic feet per barrel (6 Mcf/bbl.) of natural gas to
barrels of oil equivalence is based on an energy equivalency
conversion method primarily applicable at the burner tip and does
not represent a value equivalency at the wellhead. All boe
conversions in this news release are derived from converting gas to
oil in the ratio mix of six thousand cubic feet of gas to one
barrel of oil.
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SOURCE Petro-Victory Energy Corp.