Petro-Victory Power Corp. mentioned it has began its drilling marketing campaign of the AND-5 nicely on the Andorinha Subject within the Potiguar Basin of Rio Grande do Norte, Brazil.
The nicely represents the primary of two totally funded drilling packages within the Andorinha subject below Petro-Victory’s strategic partnership with Azevedo & Travassos Energia, the corporate mentioned in a information launch.
The nicely targets the Açu and Alagamar formations at a focused whole depth of roughly 3.862 toes (1,177 meters). The corporate owns 100% curiosity within the Andorinha Subject, in accordance with the discharge.
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Closing of Capixaba Energia Asset Acquisition
In the meantime, Petro-Victory mentioned it closed its acquisition of manufacturing oil and gasoline asset Capixaba Energia LTDA, producing substantial free money circulate within the Espírito Santo Basin.
The acquisition was accomplished in partnership with its strategic companion BlueOak Investments, the corporate mentioned in a separate assertion. The acquisition marks the primary profitable transaction below the partnership.
BlueOak totally funded the preliminary funds for the transaction value of $17.5 million and dedicated extra capital expenditures to reinforce manufacturing and operational effectivity.
The acquisition consists of 4 oil fields within the Espírito Santo Basin, together with the Lagoa Parda Cluster, plus two exploration blocks adjoining to main producers, in accordance with the assertion.
Petro-Victory CEO Richard Gonzalez mentioned, “The closing of the Capixaba Energia acquisition marks a serious milestone for Petro-Victory and a testomony to the power of our strategic partnership with BlueOak Investments. This transaction enhances our operational place in Brazil, delivering quick optimistic money flowing manufacturing, important infrastructure, and vital future upside. With BlueOak’s monetary backing and our operational experience, we’re well-positioned to unlock worth, optimize profitability, manufacturing, and drive long-term development for our shareholders”.
BlueOak CEO Meton Morais mentioned, “Our partnership with Petro-Victory displays our long-term conviction within the Brazilian power market and our perception within the worth that disciplined, performance-driven funding can unlock. Capixaba Energia represents the type of asset we search—worthwhile, producing, scalable manufacturing that’s strategically situated. We’re proud to again this transaction and look ahead to accelerating development via continued collaboration with Petro-Victory”.
Petro-Victory mentioned it plans to leverage the” versatile, performance-based three way partnership mannequin to unlock worth and capitalize on accelerated [merger and acquisition] alternatives throughout Brazil’s onshore sector. Regardless of macro uncertainty and commodity value volatility, the corporate mentioned it has “positioned itself to develop by securing low-risk, high-upside belongings with premier business companions”.
Beneath the phrases of the three way partnership settlement, Petro-Victory mentioned it should initially maintain a nominal fairness place, growing to twenty p.c after which to 50 p.c upon reaching key efficiency milestones. The corporate will function operator of the belongings.
The belongings have a present output of roughly 400 barrels of oil equal per day (boepd), consisting of 88 p.c oil, with expectations to develop considerably inside the subsequent 12 to 18 months following an in depth and deliberate workover and drilling marketing campaign focusing on confirmed reserves, the corporate mentioned.
In keeping with the newest unbiased reserves report, the oil and gasoline belongings have 2.7 million barrels of oil equal (MMboe) of whole proved (1P) sources, 3.9 MMboe of proved and possible (2P) sources, and 5.3 MMboe of proved plus possible plus potential (3P) sources, the corporate mentioned.
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