CALGARY,
AB, June 22, 2022 /CNW/ - Petro-Victory Energy
Corp. ("Petro-Victory" or the "Company") (TSXV: VRY) is pleased to
announce it has begun its 2022 multi-well drilling program
commencing on its Galp-06 well in the Andorinha Field located in
the Potiguar Basin.
Highlights
- The Company has secured environmental drilling permits for a
total of seven (7) development wells from Brazil's Environmental Agency, Instituto de
Desenvolvimento Sustentável Meio Ambiente (IDEMA);
- Civil works at four (4) drill sites and access routes have been
completed;
- All long-lead items for the 2022 multi-well drilling program
have been procured and delivered including casing, production
tubing, pumps, and drilling fluids;
- The MAPEEN-01 drilling rig has completed testing and passed its
final inspection;
- The MAPEEN-01 rig commenced drilling the first well at
Galp-06;
- To maximize time and cost efficiencies, the Company has secured
a second service rig to batch drill the surface holes at PVE-01,
PVE-02 and PVE-03; and
- The service rig has commenced drilling the surface hole at
PVE-01.
2022 Drilling Campaign Update
The Company is pleased to announce that it has commenced
drilling at the Galp-06 site as the first well in its 2022
multi-well drilling program.
Galp-06 is located 2.5 kilometers from producing oil wells and
hydrocarbon discoveries in the Andorinha Field. Based on
correlating reservoirs in Andorinha and 3-D seismic analysis,
Petro-Victory is targeting hydrocarbons at depths of 1,130–1,230
meters at the Galp-06 location.
Utilizing the MAPEEN-01 rig, the Galp-06 drilling program will
involve drilling down to a total depth of 1,250 meters, logging,
casing, cementing, and then testing the target zones over the next
30 days.
To create drilling program timeline efficiencies and drive
cost-effectiveness, the Company has secured a service rig to drill
the top-hole sections to a depth of 350 meters at the three (3)
additional new wells, PVE-01, PVE-02, PVE-03 on the Andorinha
field. The service rig has commenced drilling the top hole section
of PVE-01. Following the completion of Galp-06, the MAPEEN-01 rig
will be mobilized to PVE-01 and kick off drilling at 350 meters to
a total depth of 1250 meters.
The drilling and testing of four (4) new wells at Andorinha:
Galp-06, PVE-01, PVE-02 and PVE-03 are targeting aggregate proved
plus probable reserves of 483,000 barrels of oil with US$22.1 million in net present value discounted
at 10% as of December
31st, 2021 as evaluated by GLJ Ltd. (the "GLJ
Reserve Report"), the Company's independent qualified reserves
evaluator.
Petro-Victory has proved plus probable reserves of 3,796,000 boe
(Light and Medium Oil and Residue Gas) in Brazil as of December
31st, 2021 as per the GLJ Reserve Report.
This work, in addition to upcoming work-overs at the Trapia and
Sao Joao fields, is expected to increase net company production to
1,000 barrels of oil per day within 12 months.
Richard F. Gonzalez,
Petro-Victory CEO commented:
"The Petro-Victory team has worked diligently over the last six
years to acquire a portfolio of assets across two prolific
oil-producing basins and develop a technical work program that is
expected to deliver significant returns to our investors.
Commencing our work program after years of investment is a
monumental inflection point in our Company's history and we look
forward to sharing our success with shareholders."
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) 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.
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 & Gas Advisories
All reserve references in this press release are to gross
reserves as at the effective date of the applicable evaluation.
Gross reserves are Petro-Victory's total working interest reserves
before the deduction of any royalties and including any royalty
interests of Petro-Victory. The recovery and reserve estimates of
Petro-Victory's crude oil, natural gas liquids and natural gas
reserves provided herein are estimates only and there is no
guarantee that the estimated reserves will be recovered. Actual
crude oil, natural gas and natural gas liquids reserves may be
greater than or less than the estimates provided herein. All
estimates of reserves and future net revenue contained herein were
derived from the GLJ Reserve Report, in accordance with the
definitions, standards and procedures contained in the Canadian Oil
and Gas Evaluation Handbook and National Instrument 51-101
Standards for Disclosure for Oil and Gas Activities, adjusted
for change of working interests and sale of interests as a result
of the Company's asset transactions, as reconciled on the reserves
reconciliation slide. It should not be assumed that the present
worth of estimated future cash flow presented herein represents the
fair market value of the reserves. There is no assurance that the
forecast prices and costs assumptions will be attained and
variances could be material. The recovery and reserve estimates of
Petro-Victory's crude oil, natural gas liquids and natural gas
reserves provided herein are estimates only and there is no
guarantee that the estimated reserves will be recovered. Actual
crude oil, natural gas and natural gas liquids reserves may be
greater than or less than the estimates provided herein.
"reserves" are estimated remaining quantities of oil and
natural gas and related substances anticipated to be recoverable
from known accumulations, as of a given date, based on (a) analysis
of drilling, geological, geophysical, and engineering data; (b) the
use of established technology; and (c) specified economic
conditions, which are generally accepted as being reasonable and
shall be disclosed. Reserves are classified according to the
degree of certainty associated with the estimates being "proved
reserves", "probable reserves" and "possible reserves".
In this press release "1P" means "proved reserves", those
reserves that can be estimated with a high degree of certainty to
be recoverable. It is likely that the actual remaining quantities
recovered will exceed the estimated proved reserves.
In this press release "2P" means "proved plus probable
reserves", probable reserves being additional reserves that are
less certain to be recovered than proved reserves. It is equally
likely that the actual remaining quantities recovered will be
greater or less than the sum of the estimated proved plus probable
reserves.
The estimates of reserves and future net revenue for individual
properties may not reflect the same confidence level as estimates
of reserves and future net revenue for all properties, due to the
effects of aggregation.
We have adopted the standard of six thousand cubic feet of
natural gas to one barrel of oil ratio when converting natural gas
to barrels of oil equivalent ("boe"). Boe may be misleading,
particularly if used in isolation. A boe conversion ratio of 6
Mcf:1 barrel is based on an energy equivalency conversion method
primarily applicable at the burner tip and does not represent a
value equivalency at the wellhead. Given that the value ratio based
on the current price of crude oil as compared to natural gas is
significantly different than the energy equivalency of the 6:1
conversion ratio, utilizing the 6:1 conversion ratio may be
misleading as an indication of value.
Drilling Locations:
Of the four Andorinha drilling locations referenced in this
press release, all have been assigned reserves in the GLJ Reserve
Report. All are proved undeveloped except for GALP-06 which is
probable undeveloped.
SOURCE Petro-Victory Energy Corp.