CALGARY, October 20th, 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 Andorinha Field in the Potiguar Basin, onshore Brazil.
Operations and Facilities Update
Andorinha Field Facilities Expansion
The Company has commenced work on the expansion of production facilities and oil storage capacity at the 100% operated Andorinha field with an expected completion during Q4 2022. The project has been undertaken to expand the capacity of the current facilities on the Andorinha field and to provide the Company with the necessary storage and water handling as production increases from the current and future planned drilling campaigns.
Current facilities at Andorinha have oil storage capacity of 60m3. Under the new project, storage capacity will triple to 180m3.
Andorinha Solar Project
As announced on August 11, 2022, the Company entered into a contract with a local renewable energy infrastructure provider to install a solar array at its Andorinha oil field (the “Andorinha Solar Project” or the “Project”). Installation is now complete and the start of clean energy generation is expected within 2 weeks.
Petro-Victory estimates that the Andorinha Solar Project will reduce Scope 2 emissions by approximately 60 tons of CO2 per year, lowering the carbon intensity of the Company’s produced barrels of oil.
The Project will eliminate electricity expenses, the major operating cost of the Andorinha field, increasing the netback (profit margin per barrel of oil) for the Company.
Production & Drilling Update
The Andorinha field is averaging production of 30 BOPD in 2022 (January to August) from 4 wells (AND-01, GALP-01, GALP-30, and GALP-38). The field has produced more than130,000 barrels of oil since discovery, and the field remains in the early stages of primary recovery with a total of 1.958MMBO of 2P oil reserves to recover over the life of the field according to the Company’s independent reserve auditor, GLJ.
Production testing on PVE-01 is expected to commence within the next 30 days. After testing, the PVE-01 well will be tied into the existing production facilities at Andorinha.
Upcoming PVE-02 and PVE-03 Wells
The Company is currently sourcing an alternative drilling rig for the upcoming PVE-02 and PVE-03 wells at Andorinha. The PVE-02 and PVE-03 wells are already drilled and cased to ~280m and each require 1,000m of drilling with an 8.5” hole section. In addition, all PVE-02 and PVE-03 long lead items and materials have already been delivered and are stored at the Company’s storage facilities at Andorinha.
Richard F. Gonzalez, Petro-Victory CEO commented:
“The expansion of the facilities at Andorinha is a strategic decision placing the company in a position of strength, maintaining our discipline and focus on investment in high potential, low-risk assets, which in this case, unlock value from our portfolio in the Andorinha field. I am very proud of all of our team-members who work collaboratively to create value for our stakeholders.”
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.
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.
For further information
Petro-Victory Energy Corp.
Richard F. Gonzalez, CEO – 817-838-1819
Daniel Wray, CFO – 817- 838-4744