Brazil: Petro-Victory Energy awarded 16 new oil concessions in Brazil
11 Sep 2019
Petro-Victory Energy has announced that following successful participation and bidding in the ANP Permanent Offer Round 1 held in Rio de Janeiro, Brazil on September 10 2019, Petro-Victory has been awarded 16 new oil concessions in the oil prolific Potiguar Basin of Brazil.
This new acquisition will increase the Petro-Victory Brazil portfolio to 25 oil concessions and represents a 250% increase in acreage. The 16 new oil concessions represent 116,904 acres and are located adjacent to Petro-Victory’s operating infrastructure at the Andorinha and Alto Alegre oil fields. The closure and signing date for the 16 oil concessions is expected in Q1 2020, with the initial signature bonus payable on completion estimated to be $0.909 million.
15 of the 16 oil concessions have a 5-year evaluation phase that will be converted into a long-term production license after declaring commerciality, and 1 of the oil concessions has a 3-year evaluation phase. 28 wells have been drilled across the 16 concessions, with 60% of the drilled wells finding oil shows and/or produced oil and gas at commercial rates. The concessions have 3D seismic coverage, and the immediate work program consists of a re-evaluation of the drilled wells, reprocessing and mapping of seismic data, followed by ranking the numerous oil and gas targets across the portfolio to solidify the drilling and workover program.
Richard F. Gonzalez, Chief Executive Officer of Petro-Victory commented:
'We are extremely pleased to have been awarded 16 oil concessions in ANP’s first permanent offer round. These acquisitions build upon our onshore high-quality production and development assets in Brazil'.
Source: Petro-Victory Energy