DALLAS, March 6,
2025 /CNW/ - Petro-Victory Energy Corp. (TSXV:
VRY) ("Petro-Victory" or the "Company") and
BlueOak Investments ("BlueOak") have signed a sale and
purchase agreement to acquire Capixaba Energia LTDA, a fully
integrated onshore Brazilian production company with strong
financials and near-term growth potential. The transaction is
expected to close in the second quarter of 2025.
Key Acquisition Highlights
- Strategic Growth Hub: Capixaba
Energia generates strong cash flow and owns critical
infrastructure assets, positioning Petro-Victory and BlueOak for
accelerated growth in Brazil's
onshore oil and gas sector.
- Proven Oil Fields & Exploration
Potential: The acquisition includes four oil fields in the
Espírito Santo Basin (including
Lagoa Parda Cluster) plus two exploration blocks adjacent to major
producers.
- Production Expansion: Current output of approximately
400 boe/d (88% oil) with expectations to grow substantially
within the next 12-18 months following a detailed and planned
workover and drilling campaign targeting proven reserves.
- Acquisition Terms: Total Price: USD
$17.5 million (BRL $105 million) including earn-outs, funded by
BlueOak and future cash flows.
Joint Venture Agreement with BlueOak: After announcing a
strategic partnership with Blue Oak Investments on January 7, 2025, Petro-Victory and BlueOak
executed a Joint Venture Agreement ("JVA") on February 28, 2025, to establish the terms and
conditions governing the acquisition of Capixaba Energia. BlueOak
has extensive experience with investments in the onshore oil and
gas sector having structured, invested, and successfully
divested from one of the best success cases in the onshore industry
in Brazil. BlueOak will fund 100%
of the acquisition and will be the controller, while Petro-Victory
will be the operator. Petro-Victory will begin with a nominal
equity position at closing and will become a relevant equity holder
(20% and then 50%), upon reaching certain thresholds. No additional
capital is required to be injected by the Company to attain the
relevant equity position and the Company will be paid to operate
the assets.
Richard F. Gonzalez, CEO
Petro-Victory commented, "I am very pleased to announce our first
acquisition in partnership with BlueOak. The acquisition of
Capixaba Energia marks a strategic milestone in our expansion, as
we establish a hub of production and expertise in the Espírito
Santo region. This acquisition
strengthens our position in Brazil, firmly establishing Espírito
Santo basin as a key area for
production growth and complementing our presence in the
Barreirinhas and Potiguar basins, where we are already
well-positioned. We look forward to unlocking the full potential of
these assets and driving long-term value creation with
BlueOak."
Meton Morais, CEO of BlueOak, commented, "Our investment in
Capixaba Energia, in partnership with Petro-Victory, marks a
pivotal step in our commitment to unlocking value in the Brazilian
energy sector. Brazil is an
increasingly attractive market for Oil and Gas investment and
currently has more sellers than buyers of onshore assets. The
Espírito Santo onshore basin
offers a unique consolidation opportunity, given that we do not see
a major structured and capitalized player investing in the
development of its assets. We look forward to a successful
partnership with Petro-Victory as we drive growth and create
sustainable value through operational excellence and disciplined
capital allocation."
Strategic Rationale & Operational Impact
- Deep Asset Knowledge and Plan to Increase Production and
Efficiency: Petro-Victory previously partnered in the
Lagoa Parda Cluster, gaining valuable technical expertise and
industry relationships. The work program will focus on maximizing
production, improving recovery rates, and optimizing operating
costs.
- Deep Brazilian and Latam O&G Investment
Knowledge: BlueOak has extensive experience with investments in
the onshore oil and gas sector having structured, invested, and
successfully divested from one of the best success cases in the
onshore industry in Brazil.
- Certified Reserves & Production
History: Capixaba Energia has a certified reserve report
dated December 31, 2019, by GLJ.
A new reserve report is being prepared by an independent
reserves evaluator in accordance with NI 51-101 and COGEH and will
be published when available, and the report is expected to increase
certified reserves. The field has produced 38,000Mbbl to
date, with substantial reserves remaining.
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 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, the timing and completion of the acquisition,
the increase of the ownership interested in Capixaba Energia LTDA,
our business strategies, oil and natural gas production levels,
the filing of an updated reserve report, plans and objectives, and
drilling, testing, and exploration expectations. These
forward-looking statements are based on certain key assumptions
regarding, among other things, completion of the acquisition,
which may not occur in a timely fashion, or at all, our ability to
add production and reserves through our exploration
activities; the receipt of the DeGolyer and MacNaughton reserve
report; 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). The receipt of a
reserves report with greater reserves may not happen or may be
different from expectations. 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.
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.
