CALGARY, AB, June 24, 2024 /CNW/ - Petro-Victory Energy Corp.
("Petro-Victory" or the "Company") (TSXV: VRY) is pleased to
announce that it has entered into a definitive option agreement and
assignment of interest with Azevedo Travassos Petroleo S/A
("ATP")
Azevedo & Travassos Petroleo S/A (ATP) is a Brazilian
company engaged in the exploration and production of crude oil and
natural gas. ATP started its operations in the Potiguar Basin in
1984, becoming the first Brazilian private company to explore oil
and gas in the region. Currently, ATP enhances its portfolio of oil
and natural gas production assets through M&A operations,
acquisition of third-party fields, and operational partnerships.
Its parent company, Azevedo & Travassos S/A, is listed on the
Brazilian Stock Exchange, trading its shares under the tickers
AZEV3 and AZEV4.
The agreement signed between Petro-Victory and ATP includes a
work program to be carried out on two 100% owned and operated
Petro-Victory concessions located in the Potiguar Basin, in the
state of Rio Grande do Norte, the Andorinha Field and POT-T-281
block.
ATP will pay 100% (one hundred percent) of the work program,
which initially consists of drilling and completing the AND-4 and
AND-5 wells in the Andorinha field and a workover in the CR-2 well
located in the POT-T-281 block.
ATP will receive 75% (seventy-five percent), Petro-Victory will
receive 25% (twenty-five percent) of the net income generated by
the production of these wells, until the CAPEX for the work program
provided by ATP is fully recovered. Thereafter, the net income
generated by the production of these wells will be split 50% (fifty
percent) to each company.
Petro-Victory remains operator of the Andorinha field and the
POT-T-281 block. ATP may, at its sole discretion, offer its
engineering services, construction and assembly of oil production
facilities and well drilling, completion and maintenance
services.
The agreement also establishes the commitment to hire a
third-party independent engineering firm to certify the reserves of
the Andorinha field and the POT-T-281 block after the completion of
the work program. ATP will have an option to buy 50% of both assets
at a pre-determined price of USD10.00
(ten US dollars) per barrel of proven
reserves (1P) and USD4.00
(four US dollars) per barrel of
probable reserves. This option must be exercised within 9 (nine)
months from today's date, provided that this period is sufficient
to finalize the new reserve report after the completion of the work
program.
The partnership between Petro-Victory and ATP creates potential
for growth and further developments with the aim of extending
market reach and capturing new synergies between the two companies
and their operating assets.
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 forty-one (41) licenses totaling
272,912 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 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, 2022 is contained in the Company's
Form 51-101F1 for the year ended December
31, 2023 which has been filed on SEDAR
(www.sedar.com). 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 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 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 recovery and reserve estimates of the
Company's reserves provided herein are estimates only, and there
is no guarantee that the estimated reserves will be recovered.
Actual reserves 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.
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.