Petro-Victory Energy Corp. (TSX-V:VRY) told investors that wells updates completed earlier this year have driven a 99% improvement in oil sales in its second quarter.
A three-well workover campaign was completed at its São João field back in April, and that operation subsequently resulted in oil sales of 5,814 barrels for the quarter.
It noted, in Thursday’s statement, that the São João field now contains a ‘best estimate’ 8.4 million barrels oil equivalent (50.1 billion cubic feet of gas) in development-pending risked contingent resources.
These resources have an estimated net present value of US$$97.3 million.
At the same time, Petro-Victory highlighted that it now has reserves of 6.9 million barrels of oil equivalent, worth US$257.7 million NPV.
“The São João Field had no production, no reserve report, and no facilities prior to Petro-Victory entering in April 2020,” chief executive Richard F. Gonzalez said.
“The field has since produced more than 50,000 barrels of oil and has 1.9 MMboe in 2P Reserves and Best Estimate - Development Pending Risked Contingent Gas Resources of 8.4 MMboe."
The company highlighted that a key element of its development strategy is a partnership with Azevedo Travassos Petróleo S/A (ATP) – which is expected to see the re-entry and workover of the CR-2 well in Block 281, with ATP covering 100% of the costs.
Further development is planned for the Andorinha field, where two additional wells will be drilled starting in December.
ATP will cover the costs upfront, with net income split between the companies.
Petro-Victory is also evaluating opportunities to expand its production, in collaboration with XP Group, through the acquisition of mature oil and gas fields in Latin America.