License Portfolio

Petro-Victory has acquired nineteen fields across two prolific oil-producing basins – the Barreirinhas Basin and Portiguar Basin.

As of December 31, 2020, total proved plus probable reserves of 2.827 MMBO and a before tax NPV10 value of US$90.386 million has been assigned to the company for the Andorinha, Carapitanga, and Sao Joao oil fields. This represents a 2P Net Asset Value of CAD$12.18 per share on an undiluted basis (9,214,020 shares outstanding). The reserves data set forth herein is based on an independent reserve assessment and evaluation prepared by GLJ Ltd. dated April 13, 2021 with an effective date of December 31, 2020.

Subsequent to the acquisition of the remaining 50% of the Sao Joao field, Petro-Victory's total proved plus probable reserves increased to 3.56 MMBO and a before tax NPV10 value of US$113.682 million or CAD$15.42 per share. The entirety of the Sao Joao field included within the reserve assessment and evaluation prepared by GLJ Ltd. dated April 13, 2021 with an effective date of December 31, 2020.

PetroVictory Portfolio Montage

December 2020 – Reserve Report Highlights (Including 100% of Sao Joao)

  • Proved Reserves (“1P”), Proved + Probable Reserves (“2P”), and Proved + Probable + Possible Reserves (“3P”) only calculated for three of the Company’s twenty fields.
  • Net 1P Reserves of 1,579,000 BO with a PV10 valuation of US$49,614,000 or CAD$6.73 /share

  • Net 2P Reserves of 3,561,000 BO with a PV10 valuation of US$113,682,000 or CAD$15.42 /share

  • Net 3P Reserves of 4,901,000 BO with a PV10 valuation of US$155,841,000 or CAD$21.14 /share

  • The Company holds 17 additional assets that are not included in the December 31, 2020 reserve report. Those assets include Alto Alegre, Trapia, and 15 additional concessions in the Potiguar Basin.

Portfolio Summary

Basin Acquired From Field / Block Working Interest Acres Status
Potiguar ENGEPET Andorinha 100% 9,884 Developed Producing
Potiguar ENGEPET Alto Alegre 100% 1,315 Developed Non-Producing
Barreirinhas ENGEPET Sao Joao 100% 1,421 Developed Producing
Potiguar ANP Trapia 100% 6,178 Developed Non-Producing
Potiguar ANP POT-T-392 100% 7,933 Exploration
Potiguar ANP POT-T-432 100% 7,244 Exploration
Potiguar ANP POT-T-433* 100% 7,846 Exploration
Potiguar ANP POT-T-434 100% 7,889 Exploration
Potiguar ANP POT-T-476* 100% 10,339 Exploration
Potiguar ANP POT-T-477 100% 7,887 Exploration
Potiguar ANP POT-T-478 100% 3,521 Exploration
Potiguar ANP POT-T-519 100% 6,995 Exploration
Potiguar ANP POT-T-521 100% 5,605 Exploration
Potiguar ANP POT-T-564 100% 7,950 Exploration
Potiguar ANP POT-T-566 100% 5,949 Exploration
Potiguar ANP POT-T-606* 100% 7,909 Exploration
Potiguar ANP POT-T-650 100% 7,887 Exploration
Potiguar ANP POT-T-651* 100% 7,887 Exploration
Potiguar ANP POT-T-652* 100% 7,887 Exploration
* Assets to close in Q3 2021

Potiguar Basin

The Potiguar Basin is located in the most eastern portion of the northeast region of Brazil extending through the states of Rio Grande do Norte and Ceará. The onshore sedimentary area of the basin covers an area of 7.5 million acres and the basin extends offshore from shallow water to ultra-deep water. One thousand two hundred and eighty-two (1,282) exploration wells have been drilled in the basin (onshore and offshore) with over 1 billion barrels of oil produced onshore from >70 onshore oil fields. The first onshore discovery was made in 1979 and the majority of exploration wells were drilled between 1980-1990. Current daily oil production across the Potiguar Basin is 50,000 BOPD.

Barreirinhas Basin

The Barreirinhas Basin is located on the Brazilian equatorial margin on the coast of the state of Maranhão and covers an area of approximately 2.5 million acres onshore and extends offshore from shallow water to ultra-deep water. Only 105 wells have been drilled in the basin, with no drilling activity since the 1980’s. There is only one oil discovery within the Barreirinhas Basin, the Petro-Victory field, São João.