Petro-Victory Energy Corp. (TSX-V:VRY) has inked a deal to potentially commercialize the ‘non-associated’ gas from its São João Field.
It has entered into a memorandum of understanding with Brazilian ‘gas-to-wire’ specialist Eneva, which can now work to assess the standalone gas resources in the field – estimated at around 50.1 billion cubic feet.
Eneva will fund its work, which will include the drilling, logging, and testing of a non-associated gas well targeting. The well will target the Bom Gosto and Arpoador formations, at a depth of around 3,000 metres.
Subject to the results, Eneva may then conduct a 3D seismic survey of the entire São João field.
There is then an option for a wider joint venture to develop the gas resources, with Petro-Victory retaining 28% of the gas interests.
At the same time, Petro-Victory retains 100% of all the oil interests, which are already in production.
Richard Gonzalez, Petro-Victory chief executive, described it as a significant milestone.
"We are thrilled to announce this strategic collaboration with Eneva,” Gonzalez said in a statement.
He added: “The collaboration with Eneva not only underscores the potential of the São João field but also aligns with our commitment to unlocking value for our stakeholders through innovative and sustainable energy solutions.
“We look forward to working closely with Eneva to develop a unified gas monetization strategy at our São João Field."