CALGARY,
AB, Oct. 24, 2022 /CNW/ - Petro-Victory Energy
Corp. ("Petro-Victory" or the "Company") (TSX-Venture Symbol: VRY)
is pleased to provide an operational update on the Company's
100%-owned Alto Alegre Field in the Potiguar Basin, onshore
Brazil.
Highlights:
- Petro-Victory completed the purchase of the Alto Alegre oil
field concession for US$50,000 and
assumed 100% operated interest in Q4 2020. At the time of purchase,
there was one abandoned oil well inside the concession (ALG-01),
the field was not in production, and there were no facilities in
place.
- In Q4 2021, the Company recovered the abandoned ALG-01 well and
re-entered the well for production testing. Two successful oil
tests were carried out at reservoirs at depths of 2,274m and 2,360m.
The ALG-01 well was then suspended in preparation for commercial
production and the installation of production facilities, oil
storage, road access, and base construction.
- Following the intervention, the Company conducted a full
subsurface review consisting of reprocessing the available seismic
data and integrating the existing well and reservoir data into the
updated subsurface model, which concluded with a revised full field
development program for the Alto Alegre field. This development
plan was then sent to our independent reserve auditors, GLJ, for
assessment.
- The independent auditors assigned a total of 493,000 barrels of
2P oil reserves at a PV10 value of US$18MM. Providing the Company
with a 360x return on initial purchase price.
- The Alto Alegre field has historically produced 11,000 barrels
of oil (1993-1997) from one (1) well, and remains in early stages
of primary recovery with 493,000 barrels of 2P oil reserves to
recover over the life of the field. A drilling program will
commence in 2023 to achieve greater than 300 BOPD on a 2P
basis.
- In September 2022, the Company
completed a mechanical intervention at the ALG-01 well and placed
the well on production using a pumpjack to provide artificial lift.
The well is now averaging production of 18 BOPD and has produced
more than 1,000 barrels of oil since Petro-Victory resumed
production.
- With a five percent (5%) Royalty and low base operating expense
costs, The Alto Alegre field is currently netting back US$84 (profit per barrel of oil) at an oil sales
price of US$94 a barrel of oil.
Richard F.
Gonzalez, Petro-Victory CEO commented:
"The Alto Alegre field is another example of how we continue to
generate significant value for our shareholders, executing our
strategy of purchasing and commercializing high impact, low risk
assets in our portfolio of thirty eight (38) oil field concessions
totaling 257,604 acres in Brazil."
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
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.
SOURCE Petro-Victory Energy Corp.