Petro-Victory Eyes Acquisition of Oil Fields in Brazil's Potiguar Basin

Petro-Victory Energy Corp. has signed an exclusivity agreement with Brava Energia S.A. for the potential acquisition of 13 oil-producing fields in Rio Grande do Norte, located in the Potiguar Basin of Brazil.

The fields are located in two producing assets: the Porto Carão Cluster and the Barrinha Cluster, according to a news release from the company.

The Porto Carão Cluster is located in the Potiguar onshore basin, in the state of Rio Grande do Norte, near the municipality of Guamaré. It comprises four concession contracts that cover four oil-producing fields. The Barrinha Cluster is also located in the Potiguar onshore basin, in Rio Grande do Norte, near the municipality of Mossoró. It comprises seven concession contracts that cover nine oil-producing fields.

The agreement grants Petro-Victory exclusivity for the negotiation of the acquisition of the assets for an initial period of 30 days, starting from the date of its signing on December 17, which may be extended for a similar period, provided there is a mutual and formal agreement between the parties.

Sao Joao Development

Meanwhile, Petro-Victory 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.

The São João Field non-associated gas reservoirs were discovered and tested by a previous operator. The assets were reported as having 50.1 billion cubic feet (1.4 billion cubic meters) of non-associated gas. The field is 100 percent owned and operated by Petro-Victory.

Brazilian integrated energy operator and liquefied natural gas (LNG) producer 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 3 kilometers.

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, according to the MOU.

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 a 72 percent participation interest in the JV, while Petro-Victory will retain 28 percent interest in the JV. The JV structure will ensure that Petro-Victory retains 100 percent of the revenues from oil production, it stated.

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, Petro-Victory noted.

Petro-Victory CEO Richard Gonzalez said, “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”.

Petro Victory is engaged in the acquisition, development, and production of crude oil and natural gas resources in Brazil. The company holds 100 percent operating and working interests in 38 licenses totaling 257,604 acres in two different producing basins in Brazil.

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