Petro-Victory Energy Corp (TSXV: VRY) this morning announced that it has closed on the acquisition of nine oil concessions in Brazil that are onshore. The acquisition adds a total of 63,583 acres to the firms portolfio within the Potiguar Basin.
The acquisition is said to materially increase the ability of the company to potential improve reserves, production and profitability as a whole. The company has obtained 100% interest in the concessions within the oil-producing basin, with the transactions having been approved by the regulatory within Brazil.
None of the concessions are currently in production. However, there are reportedly nineteen wells drilled across the concessions, with evaluation of well data currently underway. “Several” wells also reportedly have evidence of both gas and oil accumulations, some of which have tested to surface. The company is currently in the process of identifying prospects for drill ready locations.
All of the concessions were reportedly previously owned by Petrobras, a state-owned multinational corporation focused on the petroleum industry. Contracts for the concessions were reportedly executed March 2 for six of the contracts, with ceremonies for the final three to occur on June 7.
The company is also in the process of closing on a total of seven additional Petrobras concessions within the same basin. The basin has become a core region for Petro-Victory, with the basin currently exhibiting daily production of 50,000 BOPD.
The concessions were acquired for a total figure of US$393,000.
Petro-Victory Energy last traded at $3.25 on the TSX Venture.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
