Petro-Victory Energy has announce independently certified reserves for the first time in the Company’s history.
As of December 31, 2020, total proved plus probable ('2P') reserves of 2.827 MMBO and a before tax value discounted at 10% of US$90.386 million has been assigned to the company for the Andorinha, Carapitanga, and Sao Joao oil fields in Brazil. This represents a 2P Net Asset Value of CAD$12.18/share on an undiluted basis (9,214,020 shares outstanding). The reserves data set forth herein is based on an independent reserve assessment and evaluation prepared by GLJ, Ltd. dated April 13, 2021 with an effective date of December 31, 2020.
Reserve Report Highlights:
- Proved Reserves ('1P'), Proved Plus Probable Reserves ('2P'), and Proved Plus Probable Plus Possible Reserves ('3P') only calculated for 3 of the Company’s 20 assets.
- Net 1P Reserves of 1,103,000 BO with a PV10 valuation of US$34,802,000 or CAD$4.69/share
- Net 2P Reserves of 2,827,000 BO with a PV10 valuation of US$90,386,000 or CAD$12.18/share
- Net 3P Reserves of 4,011,000 BO with a PV10 valuation of US$127,332,000 or CAD$17.16/share.
Richard F. Gonzalez, Chief Executive Officer of Petro-Victory commented:
'The certified Reserve Report reflects the material shareholder value increase that our team has been building since our arrival in Brazil. Our current focus is on executing the 2021 drilling and work-over program to significantly increase our oil production, cash flow and profitability. We remain diligent and active in our pursuit to acquire and increase our portfolio of low risk high impact onshore oil fields. We are also very pleased that our Brazilian operations are generating positive cash flow. We thank our shareholders and stakeholders for their continued support and trust.'
Source: Petro-Victory Energy