Petro-Victory Vitality Corp. is pushing by means of with the acquisition of 13 oil fields in Rio Grande do Norte, positioned within the Potiguar Basin of Brazil, from Brava Energia S.A.
Petro-Victory signed a sale buy settlement, with a 50/50 partnership with Azevedo & Travassos Petroleo (ATP), for the acquisition of Polo Porto Carão and Polo Barrinha from Brava Energia subsidiaries 3R RNCE S.A. and 3R Potiguar S.A.
The Calgary, Alberta-based firm signed an exclusivity settlement with Brava Energia S.A. for the belongings in December 2024.
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The whole acquisition worth for the belongings is $15 million, web $7.5 million for Petro-Victory, it mentioned in a information launch. The fee will likely be made in 4 tranches plus a gross overriding royalty, of which Petro-Victory’s contribution will likely be pro-rated at 50 p.c working curiosity.
The transaction is anticipated to shut within the second half of 2025, topic to customary closing situations and regulatory approvals from the Nationwide Company of Petroleum in Brazil, the corporate mentioned.
The 13 oil fields, with absolutely operational manufacturing amenities comprising 38,301 acres, are “strategically positioned adjoining to Petro-Victory’s current belongings,” it mentioned. The belongings have present manufacturing of 250 barrels of oil per day, with a high-impact work program underway to extend oil manufacturing. Brazil’s Nationwide Company of Petroleum has reported a quantity of oil rather than 125 million barrels, with a restoration issue of 13.3 p.c, in keeping with the discharge.
“The proximity of the brand new oil fields to our current belongings permits us to streamline logistics and share providers equivalent to upkeep, transportation, administrative assist, and useful resource allocation for personnel, tools, and applied sciences. This shared infrastructure considerably reduces total operational prices,” Petro-Victory mentioned.
The Porto Carão Cluster is positioned within the Potiguar onshore basin, within the state of Rio Grande do Norte, close to the municipality of Guamaré. It contains 4 concession contracts that cowl 4 oil-producing fields. The Barrinha Cluster can also be positioned within the Potiguar onshore basin, in Rio Grande do Norte, close to the municipality of Mossoró. It contains seven concession contracts that cowl 9 oil-producing fields.
Petro-Victory mentioned it at the moment has three oil producing fields and 34 exploration blocks within the Potiguar Basin. Over the previous 5 years, it has reprocessed and merged 12 volumes of 3D seismic knowledge protecting greater than 579.15 sq. miles (1,500 sq. kilometers) within the Potiguar basin, together with volumes which cowl the acquired fields.
“This acquisition marks a transformative milestone for Petro-Victory, considerably enhancing our oil manufacturing capability and growing our confirmed reserves. We count on the up to date reserve report will improve our confirmed reserves by 50 p.c,” Petro-Victory CEO Richard Gonzalez mentioned.
“It additionally maximizes the substantial investments made by our Subsurface, Engineering, and Operations groups over the previous 5 years within the Potiguar Basin. By means of disciplined technique and technical experience, we have now constructed a powerful place and deep understanding of this oil-prolific basin. We’re happy to additional strengthen our partnership with ATP by means of this acquisition, reinforcing our dedication to unlocking the complete potential of the Potiguar Basin,” he added.
Brava initially bought the 13 oil fields from Petrobras between the years 2020 and 2022. The fields have been found in 1976 by Petrobras and have produced 16.5 million barrels of oil to this point, in keeping with the discharge.
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