Petro-Victory Energy Corp. (TSX-V:VRY) has unveiled the results of its 2023 year-end reserves evaluation that have illustrated the Brazil-focused oil company’s growth story.
The company holds a 100% working interest in 41 blocks in Brazil, six of which have reserves valuation in the report. The additional 35 concession blocks are not included.
As of December 31, 2023, the blocks have proved (1P) resources totalling 3,434 thousand barrels of oil equivalent (Mboe) representing a net present value before tax, discounted at 10% (NPV10) of $130.5 million or $40.68 per barrel of oil equivalent.
Proved plus probable (2P) reserve total 6,873 Mboe with a before-tax NPV10 of $257.7 million or $40.05 per barrel of oil equivalent.
Proved plus probable plus possible (3P) reserves are 10,116 Mboe with a before-tax NPV10 of $368.5 million or $38.91 barrels of oil equivalent.
Finally, development pending risked contingent resources are 8,359 Mboe with a best estimate NPV10 of $97.3 million, GLJ’s evaluation showed.
These contingencies are associated with a pending memorandum of understanding that has not been assigned with a potential mid-stream partner, and the report estimates the chance of development as 77%.
Richard Gonzalez, Petro-Victory Energy CEO, expressed excitement over the company securing these additional risked contingent natural gas resources in the São João field amidst a robust commodity cycle.
“These resources have 100% chance of discovery, tested by Petrobras (NYSE:PBR), with a 77% chance of commerciality pending potential partnerships for midstream and downstream sales in a high-demand region,” he said.
"Our strategy of identifying, quantifying, and qualifying reserves has been pivotal in acquiring valuable assets and pursuing risk-based development. This positions us for future growth as we execute a disciplined capex program to boost production and cash flow.”
He added that the company expects a successful second half of 2024 focused on drilling infill, development wells, and workovers.
"Petro-Victory's prospect inventory is expanding, and we continue to dedicate resources to the identification of future prospects and development plans,” Gonzalez said.
Shares of the oil company rose 3.5% in Toronto on Thursday.
--Updates with share price movement--