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Petro-Victory Energy Showcases Exceptional First Year at Capixaba Energia

In a noteworthy achievement, Petro-Victory Energy Corp. (TSX-V: VRY) has reported significant advancements in its first year of operations at Capixaba Energia, following its collaboration with Blue Oak Investments. The company announced a remarkable 128% surge in oil production, moving from a daily yield of 256 barrels to 583 barrels, alongside an astounding 471% increase in gas production. This growth not only reflects Petro-Victory's ability to enhance operational capabilities but also underscores the strength of its strategic partnerships within Brazil's dynamic energy landscape.

Key Highlights of the Initial Year

Petro-Victory Energy's first-year accomplishments outline how strategic collaboration can lead to exceptional results:

• - Dramatic Oil Production Increase: The company's oil production experienced a significant rise of 128%, transitioning from 256 bbl/d to 583 bbl/d. This impressive outcome illustrates the effective optimization strategies applied across their operations.

• - Gas Production Growth: In addition to oil, the gas production skyrocketed by 471%. This diversification not only broadened revenue avenues but also supported a more sustainable operational model.

• - Cost Efficiency Improvements: Alongside increased production, Petro-Victory successfully lowered its production costs by 37%, decreasing from $25.8 per barrel to $16.3. Such cost efficiency is pivotal for maintaining profitability in a volatile market.

• - Sustained Financial Performance: The company generated R$17 million in operational free cash flow, which has been reinvested back into the business, showcasing a commitment to long-term growth.

• - Operational Excellence: Achieving an operational efficiency rate of 98.7%, the company’s workover campaign boasted minimal non-productive time and maintained a zero-accident record. This efficiency is a testament to effective management and strategic planning in operations.

Strategic Initiatives and Infrastructure Enhancements

Throughout the year, Petro-Victory embraced a comprehensive operational strategy that emphasized:

• - Production Optimization: The company executed enhanced reservoir development and technical evaluation programs, which unlocked potential within existing assets without the necessity for new drilling.

• - Validation of New Reservoirs: Key wells were validated during this time, with the Upper Urucutuca identified as a new commercial horizon, projecting promising development opportunities for future exploitation.

• - Water Injection Capacity Boost: The company enhanced its water injection capacity by 67%, expanding from 12,000 bpd to 20,000 bpd without incurring additional capital expenditures. This not only increased operational flexibility but also improved production reliability.

Building a Scalable Model for Success

Petro-Victory’s model promotes a scalable approach to revitalize mature onshore assets. By focusing on experienced management, rigorous technical optimization, and judicious capital allocation, the company aims to expand its footprint across Brazil and Latin America. The partnership with Blue Oak demonstrates a balanced blend of operational expertise and capital support, ensuring a robust framework for sustained value creation in future endeavors.

The first year of operations at Capixaba Energia is proof of a successful strategy hinging on operational efficiency, increased production, and strategic reinvestment. As Petro-Victory Energy continues to refine its strategies and leverage its partnerships, its commitment to maximizing existing capabilities will undoubtedly pave the way for future successes in the oil and gas sector. This progressive approach not only enhances shareholder value but also promises to secure Petro-Victory's standing as a competitive player in the energy industry.

About Petro-Victory Energy Corp.

Petro-Victory Energy Corp. is actively involved in the acquisition and development of oil and gas assets in Brazil. As of now, the company's portfolio encompasses 31 concession contracts over 210,583 acres, alongside additional joint ventures with Blue Oak, indicating a strategic push in the energy market. The company remains focused on delivering sustainable shareholder value through strategic investments in high-impact initiatives.