#Dallas #Brazil #Energy Sector #Petro-Victory #Azevedo & Travassos

Petro-Victory Energy Enters Strategic Partnership with Azevedo & Travassos

On March 27, 2026, Petro-Victory Energy Corp. (TSXV: VRY) announced a pivotal move in its growth strategy by entering into a definitive association agreement with Azevedo & Travassos Energia S.A. (ATE), a publicly listed Brazilian oil and gas enterprise. This agreement facilitates Petro-Victory's contribution of several selected assets in the Potiguar Basin in exchange for a 10.25% ownership stake in ATE, marking a significant shift in its operational landscape.

Key Highlights of the Agreement

The agreement, confirmed on March 26, 2026, is structured to enhance both companies' operational capabilities. Specifically, Petro-Victory will transfer its interests in the Andorinha field concession, a series of exploration blocks, and certain options tied to its existing assets. The total implied value of this transaction is estimated at approximately USD $5.6 million, indicative of a robust market positioning for both parties.

Assets Involved in the Transaction

The assets transferred include:

• - Andorinha Field Concession: This serves as a vital production asset that underscores Petro-Victory's operational capacity in Brazil.
• - Exploration Portfolio: This portfolio encompasses six exploration concessions within the Potiguar Basin.
• - The Brava Option: A strategic option to secure a 50% interest in additional oil and gas assets through ongoing negotiations with Brava Energia S.A., adding further depth to Petro-Victory's asset base.

This structured undertaking is designed to occur in phases, aligning with regulatory approval timelines. Asset transfers will be phased as necessary regulatory approvals are secured both in Brazil and Canada, providing a seamless transition to the new ownership structure.

Anticipated Timeline and Regulatory Approvals

Petro-Victory anticipates completing the transaction in the second quarter of 2026, subject to the requisite corporate and regulatory approvals. This includes endorsements from Brazil's National Agency of Petroleum, Natural Gas and Biofuels (ANP) and potential validations from the TSX Venture Exchange, further highlighting the rigor and complexity of international asset transactions in the energy sector.

Financial Implications and Expected Outcomes

Through this exchange, Petro-Victory will gain access to ATE Shares, which will become freely tradable upon issuance. The fair market value of the 10.25% equity stake is estimated to be around USD $2 million, with the total valuation increasing to USD $5.6 million when factoring in assumed liabilities that ATE will manage following the exchange.

Additionally, this strategic alignment is expected to relieve Petro-Victory of certain contractual obligations. Notably, this includes the reduction of accrued contingent liabilities tied to the Andorinha partnership and a decrease in obligations associated with the exploration blocks.

Maintaining a Diverse Portfolio

Despite this strategic move, Petro-Victory remains committed to a diversified asset portfolio. The company will retain its stake in the São João Field, an ongoing partnership with Eneva, alongside its engagements with Capixaba Energia. Petro-Victory will continue to hold multiple exploration blocks, ensuring a sustained presence in the region’s energy landscape.

Conclusion

Petro-Victory Energy's agreement with Azevedo & Travassos Energia represents a calculated step toward enhancing its operational scale and market positioning in Brazil’s dynamic energy sector. As the company prepares to navigate the complexities of this asset exchange while preserving existing strategic partnerships, investors and stakeholders await the subsequent developments with interest. This move not only symbolizes growth but also underscores the evolving landscape of the energy market, where strategic partnerships are becoming increasingly vital for operational success.

For further updates on this transaction and other initiatives, continue to follow Petro-Victory Energy’s developments as they unfold.