KEYFACT Energy
Petro-Victory Energy Corp. has received final approval from the Agencia Nacional do Petroleo Gas Natural e Biocombustiveis of Brazil (“ANP”) for Petro-Victory to acquire its initial working interests in Brazil.
As previously announced, the Company executed a contract for the $1.6 million acquisition of production and working interests in four (4) oil field concessions and stated its commitment of capital to materially expand production. The four fields are comprised of 12,850 gross acres located within three developed onshore basins in Brazil.
The acquisition consists of the following:
- 100% working interest in the Andorinha onshore producing oil field in the Potiguar Basin
- 100% working interest in the Alto Alegre onshore oil field in the Potiguar Basin
- 50% working interest in the Carapitanga producing onshore oil field in the Sergipe-Alagoas Basin
- 50% working interest in the São João onshore oil field in the Barreirinhas Basin
The acquired assets include existing infrastructure consisting of 21 drilled wells, pipelines, power generation and electrical lines, pumping units, paved roads, storage tanks, and extensive 3D and 2D seismic. Existing seismic and well data have been used to develop a 24-month work program. The total (Q2 2019) average production of 24 barrels of oil per day is from four mature wells in the two producing fields of Andorinha and Carapitanga. With the completion of the acquisition, Petro-Victory immediately recognizes production revenue, initiates its 2019 work program, and will start to materially increase production.
The Company acquired the assets from ENGEPET and has an operating partnership with ENGEPET to optimize field production for Carapitanga and Sao Joao fields. For the operations and development of the Andorinha and the Alto Alegre fields (100% working interest), Petro-Victory has a service agreement with ENGEPET to allow for the continuing operations and ability to immediately commence executing our work program.
Petro-Victory’s second acquisition, previously announced October 26, 2018, of five (5) exploration concessions located in the Espirito Santo Basin onshore Brazil, is expected to receive ANP approval in Q4 2019.
Richard F. Gonzalez, Chief Executive Officer of Petro-Victory commented,
“The completion of this acquisition establishes Petro-Victory’s foothold in the Brazilian onshore oil and gas community. The extensive partnerships, processes, and business structures established during this acquisition and approval process provide Petro-Victory with a solid foundation to accelerate our growth. We will be updating the market shortly on our next acquisitions, and the exciting work program to rapidly expand Petro-Victory’s production and reserves at these four oil fields.”