Press Releases

Petro-Victory Energy Corp Announces Acquisition of Remaining 50% Working Interest in the São João Oil Field and Portfolio Expansion with 47% Increase in 1P Reserves and 26% Increase in 2P Reserves

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CALGARY, August 2nd, 2021 /CNW/ – Petro-Victory Energy Corp. (TSX-V: VRY) (“Petro-Victory” or “Company”) is delighted to announce a significant expansion of its portfolio and certified reserves through the acquisition of the remaining 50% working interest in the São João oil field in the Barreirinhas Basin.


  • Increases the Company’s pre-tax 2P Reserves PV10 value by US$23,296,000
  • Cash consideration US$865,000 paid over 14 months
  • Company total 2P Reserves now 3,561,000 BO with a PV10 valuation of US$113,682,000 (CAD$15.42 /share)
  • Builds upon the initial 3-well work program at São João which delivered 170% ROI on its initial investment over fourteen months
  • An updated development plan has been submitted to ANP that is expected to achieve >500 BOPD by re-entering and perforating multiple pay zones over 9 existing wells

Acquisition Terms

Petro-Victory has executed binding purchase agreements and made initial payment to increase its working and operating interest in the São João field, in the Barreirinhas Basin onshore Brazil, to 100% for cash consideration of US$865,000, paid over 14 months. In addition to cash consideration, Petro-Victory will transfer its 50% working interest in the non-strategic Carapitanga oil field (247-acres, 1 well, 2.25 BOPD production) to the current operator EPG. The transaction is subject to approval by Agência Nacional do Petróleo (ANP) and final sale agreements will be filed with ANP within thirty days.

Reserves Impact

On May 3rd, 2021, Petro-Victory announced independently certified 2P Reserves of 2.8 million BO and a 2P PV10 valuation of US$90,386,000 which covered 3 of the Petro-Victory fields in Brazil (Andorinha, Carapitanga, and São João).

This acquisition increases Petro-Victory’s ownership to one hundred percent (100%) Working Interest in the São João oil field and full operational control to efficiently execute the Company’s field development plan. Further, the acquisition results in a 26% net increase in certified 2P reserves of 734,000 BO and a 2P PV10 valuation increase of US$23,296,000. Total certified reserves after this transaction are as follows:

  • Net 1P Reserves of 1,579,000 BO with a PV10 valuation of US$49,614,000 or CAD$6.73 /share (increase of 43%)
  • Net 2P Reserves of 3,561,000 BO with a PV10 valuation of US$113,682,000 or CAD$15.42 /share (increase of 26%)
  • Net 3P Reserves of 4,901,000 BO with a PV10 valuation of US$155,841,000 or CAD$21.14 /share (increase of 22%)

São João Acquisition and Development – The Petro-Victory Way

With the São João acquisition, Petro-Victory continues to demonstrate disciplined execution of its strategy to acquire and develop under-valued assets to create significant shareholder value. On September 5, 2018 the Company purchased a 50% non-operating interest in the São João oil field for US$135,000 and managed a work program across three wells in concert with the former field operating partner Oeste de Canoas. From May 2020 through July 2021, Petro-Victory’s 50% non-operating interest in São João generated 7,742 barrels of oil, US$390,000 revenue, and US$232,000 operating profit at an average Brent BO price of US$50 and average netbacks of US$30 over the term. Petro-Victory captured a 170% ROI on its initial investment over fourteen months.

In 2020, the Company assessed, analyzed, and updated the São João geological and geophysical data which contributed certified 2P Reserves of 787,000 BO with a PV10 value of US$25 million. Now, as outlined above, the Company has acquired the remaining 50% interest, increasing its ownership to 100%, in São João for US$865,000 plus the divestment of the non-operating Carapitanga field.

The Company’s 100% working interest ownership of São João contributes 2P Reserves of 1,574,000 BO with a PV10 value of $50,068,000 from an investment of approximately US$1,000,000 which translates into a pre-tax 2P Reserve-Based Book Value return of 4,900%. The Company projects that the 2021-2022 workovers of the existing 9 wells will generate cash flow to achieve 100% payback of acquisition costs within 12 months as the Company increases BO netbacks generated by greater operating efficiencies.

Current São João Oil Field Operations

Throughout 2021, the São João Oil Field has averaged production of 37 BOPD from 3 wells and has been producing as expected throughout the year. The transaction will deliver a net increase in current production of 16.5 BOPD to the Petro-Victory production portfolio.

As previously announced, on November 19th, 2020, Petro-Victory conducted production tests at the SJ-11 well. The first production test was completed over 47 days during late October to early December 2020, where the well produced 1,308 BO without any artificial lift. SJ-11 was brought online again in February 2021 and produced 372 BO over 21 days, again without any artificial lift. The decision was made to suspend the well and start the workover process to install a progressive cavity pump (PCP) system to provide artificial lift for the SJ-11 well. This work is now complete, and the well is currently producing, for the long term, at a rate of 10 BOPD.

Production at the SJ-06 well (where a PCP system was successfully installed in October 2020) has been consistent and producing as expected. From January-May 2021 it averaged a rate of 26 BOPD.

São João Oil Field Development Plan

An updated development plan for the São João field has been submitted to ANP that will achieve >500 BOPD by re-entering and perforating multiple pay zones over 9 existing wells. Petro-Victory will update the market on the progress of the upcoming workover at SJ-01 as well as its other work program items in the near future.

Richard F. Gonzalez, Chief Executive Officer of Petro-Victory commented:

“With the Sao Joao acquisition, the Petro-Victory Energy team continues to execute its disciplined business plan by acquiring under-valued producing assets, adding significant, materially measurable shareholder value. With this acquisition, Petro-Victory now has 100% Working Interest and 100% operating control in all 19 of the Petro-Victory oil fields. This privileged position enables the Company to successfully execute our development and work programs with maximum cost efficiency and production. Acquiring the São João Oil Field contributes significantly to Petro-Victory’s near-term production, revenue growth and shareholder value. We appreciate, value and honor the continued trust our shareholders place in us”

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 is a certified onshore and shallow water operator in Brazil and holds working interests in twenty-eight (28) licenses totaling 168,433 acres in four (4) oil producing basins in Brazil, and a royalty agreement in a 2-million-acre concession in Paraguay. 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.v.

Cautionary Note

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Advisory Regarding Forward-Looking Statements

In the interest of providing Petro-Victory’s shareholders and potential investors with information regarding Petro-Victory, including management’s assessment of 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 offering, our business strategies, oil and gas production, plans and objectives, and drilling, testing and exploration expectations. These forward-looking statements are based on certain key assumptions regarding, among other things:, the completion of the offering; 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. These and additional risk factors are discussed in our Final Prospectus dated July 11, 2014, as filed with Canadian securities regulatory authorities at

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; Mark Bronson, CFO – 817-838-4744