#Dallas #Brazil #Petro-Victory #Capixaba Energia #BlueOak

Petro-Victory and BlueOak Investments Enhance Their Brazilian Portfolio

In a significant development for the energy sector, Petro-Victory Energy Corp., located in Dallas and publicly traded on the TSX Venture under the symbol VRY, recently completed the acquisition of Capixaba Energia LTDA. This asset, situated in the Espírito Santo Basin, offers vital operational momentum for Petro-Victory in Brazil's onshore oil and gas market. The acquisition enhances the company’s strategic footprint, especially as they navigate a volatile market.

Partnership Highlights

The acquisition represents the first major deal under the collaboration with BlueOak Investments, a strategic financial partner known for its disciplined, performance-driven investment approach. Richard F. Gonzalez, the CEO of Petro-Victory, expressed confidence in this venture, viewing it as a crucial milestone that not only provides immediate cash flow but also sets the stage for future growth. Gonzalez stated, “With BlueOak's backing and our operational know-how, we expect to unlock substantial value for our shareholders.”

Meton Morais, the CEO of BlueOak, echoed this sentiment, highlighting how Capixaba Energia aligns with their investment philosophy—focusing on assets that promise profitability and scalability. The partnership exemplifies the potential of a well-structured joint venture in optimizing assets amid market fluctuations.

Strategic Advantages Post-Acquisition

Following the successful deal, Petro-Victory now operates four established oil fields, including the Lagoa Parda Cluster, and possesses two additional exploration blocks ripe for development. The immediate production capacity is impressive, with the current output standing at approximately 400 barrels of oil equivalent per day, predominantly oil (88%). This acquisition not only solidifies cash flow but also unlocks the potential for significant production increases through a funded workover and drilling campaign.

The financial robustness provided by BlueOak gives Petro-Victory the impetus to enhance operational efficiency and capitalize on Brazil’s burgeoning energy landscape. By taking advantage of their strengths in technical expertise and strategic, performance-based investment, Petro-Victory is well-positioned to thrive, particularly as others in the industry scale back operations.

Reserves and Future Outlook

A recent report completed by GLJ, Ltd., an independent reserve auditor, sheds light on the promising future of Capixaba Energia's assets. This evaluation indicates:

• - Total Proved Reserves (1P): 2.7 million barrels of oil equivalent (MMboe), with a before-tax net present value (NPV) of US $66.6 million.
• - Proved + Probable Reserves (2P): 3.9 million MMboe, equating to an NPV of US $91.9 million.
• - Proved + Probable + Possible Reserves (3P): 5.3 million MMboe, amounting to US $116.3 million.

These figures highlight the asset’s potential in contributing significantly to Petro-Victory’s portfolio, fostering a reliable growth trajectory.

Conclusion

The successful acquisition of Capixaba Energia not only showcases Petro-Victory’s strategic growth model but also its adaptability in an uncertain energy market. With a commitment to enhancing shareholder value and leveraging fruitful partnerships, Petro-Victory Energy and BlueOak Investments are set to make substantial strides in reshaping Brazil's oil landscape for the better.