Petro-Victory Energy Achieves Major Milestones in First Year at Capixaba Energia

Significant Growth for Petro-Victory Energy in First Year at Capixaba Energia

Petro-Victory Energy Corp. has made headlines with its impressive results in the first year of its operations at Capixaba Energia, a venture that began following its partnership and acquisition announcement in April 2025. The company reported an astonishing increase in both oil and gas production, coupled with a notable enhancement in their financial performance.

Richard F. Gonzalez, the CEO of Petro-Victory, expressed pride in the outcomes achieved during this initial year. The partnership with Blue Oak Investments proved crucial in turning around operations for mature onshore oil and gas assets, allowing the company to enhance production figures significantly. Notably, oil production surged by 128%, escalating from 256 barrels per day (bbl/d) to an impressive 583 bbl/d. Additionally, gas production skyrocketed by 471%, creating new revenue opportunities and reinforcing existing revenue streams.

One of the remarkable accomplishments involved a substantial reduction in production costs, which tumbled by 37% from $25.8 per barrel to $16.3 per barrel. This cost efficiency is not only vital for competition in the market but showcases Petro-Victory's adept handling of resources. By optimizing operations, the company achieved an operational efficiency rate of 98.7% during their workover campaigns, while also ensuring safety, with zero accidents reported throughout the year.

Resource Management and Infrastructure Improvements

A pivotal element of Petro-Victory's strategy was implementing an extensive workover and evaluation program aimed at unlocking further production while identifying additional opportunities. This focused approach allowed for the successful validation of three wells—LP-38, LP-73, and LP-77D—without any new drilling required to confirm the Upper Urucutuca as a commercially viable horizon.

In terms of infrastructure, water injection capacity underwent a notable 67% increase, jumping from approximately 12,000 bpd to 20,000 bpd, achieved without any extra capital expenditure (CAPEX). This enhancement not only increased production capacity but also aligned with the company's broader goal of improving operational efficiency.

Several engineering initiatives were rolled out to bolster reliability and production, such as advanced seismic reprocessing, new logging technologies, and optimizing existing systems. Furthermore, transitioning to a free energy market and the strategic reuse of materials exemplified the commitment to sustainability alongside profitability.

Economic Impact and Future Growth

In terms of financials, Petro-Victory generated R$17 million in free cash flow from operations, which was then reinvested back into the business to facilitate continued growth and optimization. This reinvestment speaks volumes about the company's strategy focused on leveraging existing assets rather than delving into extensive new drilling projects.

The partnership with Blue Oak Investments, initiated in January 2025, has played a crucial role in this operational transformation. This collaboration harnesses Petro-Victory's operational expertise and technical capabilities in the Brazilian oil and gas industry while utilizing Blue Oak's investment prowess to acquire, optimize, and amplify high-quality energy assets.

A Model for Future Success

The accomplishments at Capixaba Energia over this past year set a powerful precedent for future strategies in revitalizing mature onshore oil and gas assets. By combining experienced management, disciplined capital investment, and technical optimization, Petro-Victory is not only revolutionizing its operations but also establishing a repeatable model for growth.

The progress made during this inaugural year at Capixaba Energia underlines the potential for significant value generation in the sector. As Petro-Victory Energy looks to capitalize on its success, the focus remains on sustainable growth, enhanced operational efficacy, and a continued commitment to unlocking value across Brazil and beyond.

About Petro-Victory Energy Corp.

Petro-Victory Energy is an active player in the oil and gas sector, focusing on the acquisition, development, and production of crude oil and natural gas in Brazil. With a total portfolio comprising 31 concession contracts covering 210,583 acres, Petro-Victory aims to maximize shareholder value through prudent investments in high-impact, low-risk energy assets.