Petro Vista Energy Corp. announced that, as part of its strategy to effectively deploy its capital program and to focus its exploration and operations efforts on higher quality projects, it has restructured its asset base in Brazil and successfully reduced its working interest in two of its onshore assets within this Brazil portfolio. The Company's strategic plan is to develop the highest value near-term production opportunities along with retaining assets and drilling those exploration opportunities having the largest upside potential.
As previously announced on April 11th, 2008, Petro Vista acquired working interests in 14 hydrocarbon exploration blocks in the prolific Reconcavo and Sergipe-Alagoas Basins in onshore Brazil. Subsequent to the press release, the Company was advised that it was unsuccessful in retaining Block 235 at the end of the exploration phase. The use of proceeds previously envisioned for that Block will be utilized in higher value projects in Brazil and Colombia.
The Company has now screened through its remaining assets utilizing extensive "state of the art" 2D and 3D interpretations and seismic programs and has conducted extensive commercial analysis. Based on this extensive evaluation, the Company has now identified 4 focus blocks in onshore Brazil in which to pursue drilling within an overall program starting in the 4th Quarter of 2008 and continuing into 2009. In addition, as previously announced, the Company plans to drill a sidetrack well and conduct a re-completion into a fifth Brazil block ("Tartaruga") for which the Company has entered a letter of intent with Petrobras and TDC and which has an existing producing well in an offshore oil field. Going forward, the Company will retain a total of 5 blocks in Brazil encompassing 38,587 gross acres. More information will be released shortly on the Company's progress in Tartaruga.
In conjunction with the asset rationalization in Brazil, Petro Vista has entered into a farm-out agreement with Brownstone Ventures Inc., whereby Brownstone's Brazilian subsidiary will earn a 20 percent working interest in on-shore blocks SEAL-T-413 and SEAL-T-428, in the Sergipe-Alagoas Basin, in north-east Brazil. As part of the farm-out agreement, Petro Vista will retain a 30 percent working interest in both blocks. Petro Vista will become the Operator of these blocks upon formal partner and government approvals.
The Company continues to review new ventures and other high potential assets in these same focus areas including high quality shallow water assets in Brazil's upcoming Bid round where the Company's Management team has a successful track record and proprietary technologies.
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