Petro-Victory acquires three onshore oil fields in Brazil

Petro-Victory Energy has acquired a 50% working interest in three onshore oil fields in Brazil for a consideration of $4.68m.

The company has already paid a 7.5% deposit of $0.7m while the remaining $3.98m is due to be paid upon approval by the Agencia Nacional do Petroleo Gas Natural e Biocombustiveis of Brazil (ANP).

Petro-Victory is expecting the approval by the first half of next year.

The onshore production concessions included in the acquisition are the Lagoa Parda, the Lagoa Parda Norte, and the Lagoa Piabanha. All three fields are located in the Espírito Santo Basin.

The company has completed the transaction in partnership with Imetame Energia as part of the successful contract talks within the Petrobras’ divestment process that is currently underway.

Upon ANP’s approval, Imetame will serve as the operator of the Lagoa Parda fields discovered by Petrobras in 1978. Around 139 wells have been drilled in this field and currently produced a total of 19Mmboe.

According to Petro-Victory, production is expected to be approximately 200boepd from four wells this year.

Petro-Victory and Imetame plan to increase production to 580boepd in the first year of operations by executing a work programme.

Petro-Victory said that no additional drilling is required to achieve the expected production.

Under the initial work programme, the companies will bring existing 29 wells back to production, which were suspended due to mechanical constraints.

Petro-Victory CEO Richard Gonzalez said: “With the Lagoa Parda Field purchase, Petro-Victory and Imetame Energia now jointly hold a total of eight licences in a 50-50 partnership (ES-T-354, ES-T-373, ES-T-441, ES-T-487, ES-T-477, Lagoa Parda, Lagoa Parda Norte, and Lagoa Piabanha).

“The Lagoa Parda Fields significantly expand the Petro-Victory portfolio of oil-producing assets in the Espírito Santo Basin, accelerating our growth in onshore production, cash flow, and profitability.”