Built to Win in Volatile Markets: Strategic Alliance Drives Scalable Growth Opportunities
Petro-Victory Energy Corp, an oil and gas exploration and production company focused on onshore Brazil, has announced the successful closing of its previously announced acquisition of Capixaba Energia, a producing oil and gas asset, generating substantial free cash flow, in the Espírito Santo Basin. The acquisition was completed in partnership with BlueOak Investments, Petro-Victory's strategic financial partner. This acquisition, originally announced on March 6, 2025, marks the first successful transaction under the Petro-Victory and BlueOak partnership, reinforcing their shared commitment to unlocking value in Brazil's energy sector.
Richard F. Gonzalez, CEO of Petro-Victory, commented, 'The closing of the Capixaba Energia acquisition marks a major milestone for Petro-Victory and a testament to the strength of our strategic partnership with BlueOak Investments. This transaction enhances our operational position in Brazil, delivering immediate positive cash flowing production, critical infrastructure, and significant future upside. With BlueOak's financial backing and our operational expertise, we are well-positioned to unlock value, optimize profitability, production, and drive long-term growth for our shareholders.'
Meton Morais, CEO of BlueOak, commented, 'Our partnership with Petro-Victory reflects our long-term conviction in the Brazilian energy market and our belief in the value that disciplined, performance-driven investment can unlock. Capixaba Energia represents the kind of asset we seek—profitable, producing, scalable production that is strategically located. We're proud to back this transaction and look forward to accelerating growth through continued collaboration with Petro-Victory.'
Successful Acquisition Underscores Strength of Partnership-Driven Growth Model
The successful closing of the Capixaba Energia acquisition serves as a proof point of Petro-Victory's highly effective partnership strategy. Despite macro uncertainty and commodity price volatility, Petro-Victory has positioned itself to grow by securing low-risk, high-upside assets with premier industry partners. As legacy producers look to scale back, Petro-Victory is charging ahead, leveraging this flexible, performance-based joint venture model to unlock value and capitalize on accelerated M&A opportunities across Brazil's onshore sector.
Capixaba Energia: Establishing Strategic Growth Hub
The Capixaba acquisition strengthens Petro-Victory's position in Brazil's onshore oil and gas sector by delivering:
- Immediate Cash Flow & Production Growth - Currently producing approximately 400 boe/d (88% oil), with a fully funded workover and drilling campaign aimed at significantly increasing production and profitability.
- Strategic Infrastructure - Four producing oil fields, including the Lagoa Parda Cluster, plus two high-potential exploration blocks near major producing assets.
- Strong Financial & Operational Backing - BlueOak has fully funded the initial payments for the acquisition and committed additional capital expenditures to enhance production and operational efficiency.
- Proven Reserves & Exploration Upside - A new independent reserves report was completed earlier this month and is summarized below.
Summary of Reserves and Resources
GLJ, Ltd., the Company's Independent Reserve and Resource auditor, recently completed its assessment of oil and gas assets owned by Capixaba Energia as of December 31, 2024 (the 'GLJ Report').
The GLJ Report, which is dated April 1, 2025 and effective December 31, 2024, is summarized below.
|
Category(1) |
MMboe |
Pre-Tax NPV10(2) |
|
Total Proved (1P) |
2.7 |
US $66.6 million ($24.7/boe) |
|
Proved + Probable (2P) |
3.9 |
US $91.9 million ($23.6/boe) |
|
Proved plus Probable plus Possible (3P) |
5.3 |
US $116.3 million ($21.9/boe) |
Notes:
(1) Reserves information is derived from the GLJ Report, in accordance with National Instrument 51-101 ('NI 51-101') and the COGE Handbook. See 'Caution Respecting Reserves Information' below.
(2) Net present value before tax, discounted at 10%.
Petro-Victory & BlueOak: A Powerful Partnership for Growth
Under the terms of the Joint Venture Agreement, Petro-Victory will initially hold a nominal equity position, increasing to 20% and then 50% upon achieving key performance milestones. The Company will also serve as the operator, ensuring expert management of the assets.
This acquisition serves as a launchpad for further expansion, leveraging Petro-Victory's deep technical expertise, particularly from its previous successful involvement in the Lagoa Parda Cluster, and BlueOak's investment strength to create a high-growth, high-value energy platform in Brazil.
Source: Petro-Victory Energy via PR Newswire
