CALGARY,
AB, Sept. 10, 2024 /CNW/ - Petro-Victory
Energy Corp. ("Petro-Victory" or the "Company") (TSXV: VRY) is
pleased to announce that it has entered into a Memorandum of
Understanding ("MOU") with Eneva for the development of
Petro-Victory's non-associated gas resources located in the São
João field, at the Barreirinhas basin, in the state of Maranhão
("São João Field").
Highlights
- The São João Field non-associated gas reservoirs were
discovered and tested by a previous operator and such resources are
described in the GLJ reserve and resource report dated as of
12/31/2023 with 50.1 billion cubic
feet (1.4 billion cubic meters) of non-associated gas.
- The São João Field is 100% owned and operated by
Petro-Victory.
- On September 5th,
2024, Petro-Victory signed an MOU with Eneva to develop the
non-associated gas resources in the São João Field.
- Eneva is one of the largest Brazilian integrated energy
operators and onshore LNG producer, with operations 250km (two
hundred and fifty kilometers) from the São João Field.
- Eneva will perform and pay all costs related to the drilling,
logging, completion and testing of one non-associated gas well,
targeting the Bom Gosto/Arpoador formations, at an approximate
depth of 3km (three kilometers) ("Well Commitment").
- Upon completion of the Well Commitment, Eneva will have an
option to perform and pay all costs related to a 3D seismic data
acquisition, processing, and interpretation program covering the
entire São João Field ("Seismic Commitment").
- Upon completion of the Seismic Commitment, Eneva will have the
option to establish a joint venture company ("JV") with
Petro-Victory to develop the non-associated gas and agree on a
unified gas monetization solution. Eneva will retain 72%
participation interest in the JV. Petro-Victory will retain 28%
interest in the JV. The JV structure will ensure that Petro-Victory
retains 100% of revenues from the oil production.
All activities to be carried out in the São João Field,
under the MOU, and the establishment of the JV will be subject
to the approval of the National Petroleum Agency, when
applicable.
About Eneva
Eneva (www.eneva.com.br), listed on the New Markets Segment
(Novo Mercado) of B3 (Brazilian
Stock Exchange) since 2007, is a Brazilian integrated energy
operator, who contributes to energy transition by transforming
natural gas into electrical energy through the reservoir-to-wire
("R2W") business model. Eneva is also a relevant onshore LNG
producer in Brazil and has a
natural gas production capacity of approximately 317 MM ft³/d
(three hundred and seventeen million cubic feet per day) or 9 MM
m³/d (nine million cubic meters per day) to meet its operational
plants' demand under the R2W model, and has plans to increase
another 5.6 MM m³/d (five million and sixty hundred thousand cubic
meters per day) by 2026.
Eneva holds concession contracts spanning over 51,000 km²
(fifty-one thousand square kilometers) across onshore Brazil and operates 15 (fifteen) natural gas
fields/areas. Eneva has a contracted thermoelectric installed
capacity of 6 gigawatts, both operational and under construction,
accounting for 11% (eleven percent) of Brazil's capacity of thermal power generation.
Also, Eneva currently operates one natural gas liquefaction unit
located in the state of Amazonas and is concluding the construction
of a new unit in the state of Maranhão, located 250 km (two hundred
and fifty kilometers) from the São João Field.
Richard F. Gonzalez, CEO of
Petro-Victory, commented:
"We are thrilled to announce this strategic collaboration with
Eneva, a pioneer in the Reservoir-to-Wire business model in
Brazil. This Memorandum of
Understanding marks a significant milestone for Petro-Victory as we
move forward in exploiting and commercializing the non-associated
gas resources of our São João field. The collaboration with Eneva
not only underscores the potential of the São João field but also
aligns with our commitment to unlocking value for our stakeholders
through innovative and sustainable energy solutions. We look
forward to working closely with Eneva to develop a unified gas
monetization strategy at our São João Field."
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 TSXV under the ticker symbol VRY.
Definitions
Resource definitions, including those set out below, are as
specified by National Instrument 51-101 ("NI 51-101"), including by
reference to CSA Staff Notice 51-324 – Glossary to NI 51-101
Standards of Disclosure for Oil and Gas Activities and the COGE
Handbook.
"Best Estimate" is a classification of estimated resources
described in the COGE Handbook as being considered to be the best
estimate of the quantity that will actually be recovered. It is
equally likely that the actual remaining quantities recovered will
be greater or less than the Best Estimate. If probabilistic methods
are used, there should be a 50% probability (P50) that the
quantities actually recovered will equal or exceed the Best
Estimate.
"Contingent Resources" are those quantities of petroleum
estimated, as of a given date, to be potentially recoverable from
known accumulations using established technology or technology
under development, but which are not currently considered to be
commercially recoverable due to one or more contingencies.
Contingencies may include such factors as economic, legal,
environmental, political and regulatory matters or a lack of
markets. It is also appropriate to classify as "Contingent
Resources" the estimated discovered recoverable quantities
associated with a project in the early evaluation stage. Contingent
resources may be divided into the following project maturity
sub-classes: "Development Pending" is assigned to Contingent
Resources for a particular project where resolution of the final
conditions for development is being actively pursued (high chance
of development); "Development On Hold" is assigned to Contingent
Resources for a particular project where there is a reasonable
chance of development, but there are major non-technical
contingencies to be resolved that are usually beyond the control of
the operator; "Development Unclarified" is assigned to Contingent
Resources for a particular project where evaluation is incomplete
and there is ongoing activity to resolve any risks or
uncertainties or which require significant further appraisal to
clarify potential for development and where contingencies have yet
to be defined; "Development Not Viable" is assigned to Contingent
Resources for a particular project where no further data
acquisition or evaluation is currently planned and there is a low
chance of development.
The following classification of contingent resources represented
probabilistically as used in this press release:
- Low Estimate means there is at least a 90 percent probability
(P90) that the quantities actually recovered will equal or exceed
the low estimate.
- Best Estimate means there is at least a 50 percent probability
(P50) that the quantities actually recovered will equal or exceed
the best estimate.
- High Estimate means there is at least a 10 percent probability
(P10) that the quantities actually recovered will equal or exceed
the high estimate.
Cautionary Note
There is no certainty that any portion of the resources will be
discovered. If discovered, there is no certainty that it will be
commercially viable to produce any portion of the resources.
An estimate of expected monetary value of future net revenue of
prospective resources is preliminary in nature and is provided to
assist the reader in reaching an opinion on the merit and
likelihood of the Company proceeding with the required investment.
It includes prospective resources that are considered too uncertain
with respect to the chance of discovery and chance of development
to be classified as reserves. There is uncertainty that the
expected monetary value of future net revenue will be realized.
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 approval
by the TSXV of the Market Maker Agreement; 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.
Oil and Natural Gas Reserves
The disclosure in this news release summarizes certain
information contained in the GLJ Reserves and Resources Report but
represents only a portion of the disclosure required under
National Instrument 51-101 ("NI 51-101"). Full disclosure with
respect to the Company's reserves as at December 31, 2023 is contained in the Company's
Form 51-101F1 for the year ended December
31, 2023 which has been filed on SEDAR
(www.sedar.com). All net present values in this press release are
based on estimates of future operating and capital costs and GLJ's
forecast prices as of December 31,
2023 and have been made assuming the development of each
property in respect of which the estimate is made will occur,
without regard to the likely availability to the reporting issuer
of funding required for that development. The reserves definitions
used in this evaluation are the standards defined by the Canadian
Oil and Gas Evaluation Handbook (COGEH) reserve definitions, are
consistent with NI 51-101 and are used by GLJ. The net present
values of future net revenue attributable to the Petro Victory's
reserves estimated by GLJ do not represent the fair market value
of those reserves. Other assumptions and qualifications relating to
costs, prices for future production, and other matters are
summarized herein. The recovery and reserve estimates of the
Company's reserves provided herein are estimates only, and there
is no guarantee that the estimated reserves will be recovered.
Actual reserves may be greater than or less than the estimates
provided herein. Possible reserves are those additional reserves
that are less certain to be recovered than probable reserves.
There is a 10% probability that the quantities actually recovered
will equal or exceed the sum of proved plus probable plus possible
reserves.
BOE Disclosure
The term BARRELS OF OIL EQUIVALENT ("boe") may be misleading,
particularly if used in isolation. A boe conversion ratio of six
thousand cubic feet per barrel (6 Mcf/bbl.) of natural gas to
barrels of oil equivalence is based on an energy equivalency
conversion method primarily applicable at the burner tip and does
not represent a value equivalency at the wellhead. All boe
conversions in this news release are derived from converting gas
to oil in the ratio mix of six thousand cubic feet of gas to one
barrel of oil.
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