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CALGARY, AB, Nov. 11, 2020
/CNW/ - Petro-Victory
Energy Corp. (TSX-V: VRY) ("Petro-Victory"
or "Company") is pleased to announce that it has
entered into a binding Purchase and Sale agreement with EnP
Ecossistemas Energéticos Holdings S.A ("EnP") for the sale of
non-operated assets held by the Company for a consideration of
US$3,326,644.
The sale is comprised of:
- A 50% non-operated working interest in 5 onshore exploration
concessions, as previously announced on October 26, 2018, in the State of Espírito Santo,
Brazil. Included in the 5
exploration concessions is Block ES-T-487, where the company and
its operating partner, IMETAME Energia Ltda., successfully drilled
the 1-VID-ES (Vida) exploration well, as announced on April 7, 2020;
- Option to purchase a 50% operating interest in three onshore
oil fields (Lagoa Parda, Lagoa Parda Norte and Lagoa Piabanha) in
the Espírito Santo Basin, as previously announced on November 25, 2019, for the same proportional
amount paid to Petrobras. The consideration is the refund of 7.5%
deposit paid, in the amount of US $702,933 and the assumption of all existing debts
and liabilities associated with the working interests being sold in
the Brazilian exploration concessions and oilfields.
A 10% down payment (US$332,664)
has been received from EnP and the payment of the remaining 90%
(US$2,993,980) is contingent upon
approval of Agencia Nacional do Petroleo Gas Natural e
Biocombustiveis of Brazil ("ANP")
which is expected in December
2020.
The net proceeds of the transaction will be used for the payment
of previously announced acquisition costs, Capex to fund work
programs, and general working capital purposes.
Richard F. Gonzalez, Chief
Executive Officer of Petro-Victory commented, "This sale allows us
to reposition Petro-Victory's production portfolio during the
global pandemic, by providing the capital required to increase our
working interests and oil production in our core portfolio of high
margin producing assets."
Board Changes – Mr. Birken Olson, who has served as
a Board Member and Chair of the Audit Committee since 2016,
notified the Board of his intention to step down, effective
September 30, 2020, to dedicate his
time on personal business interests. The Board and Management thank
Mr. Olson for his 5 years of service and commitment to
Petro-Victory. We are pleased to announce that Mr.
Mark Scruggs has accepted an
invitation to join the Board as well as Chair the Audit Committee
effective October 1, 2020. Mr.
Scruggs brings a wealth of knowledge in many business aspects,
including his experience as an active oil and gas investor and his
corporate finance background. Mr. Scruggs has been a major
shareholder in Petro-Victory since 2018.
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 is a
certified onshore and shallow water operator in Brazil and holds working interests in twenty
(20) licenses totaling 129,771 acres in three (3) oil producing
basins in Brazil, and a royalty
agreement in a 2-million-acre concession in Paraguay. 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.v.
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.
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: sales and purchases of
assets, the Company offerings, 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. These and additional risk factors
are discussed in our Final Prospectus dated July 11, 2014, as filed with Canadian securities
regulatory authorities at www.sedar.com.
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.
SOURCE Petro-Victory Energy Corp.