Petro-Victory Energy Corp. (TSX-V:VRY) has signed a sale and purchase agreement in a 50-50 partnership with Azevedo & Travassos Petroleo (ATP) to acquire 13 oil fields in Brazil’s Potiguar Basin for $15 million, the company said on Monday.
The assets, purchased from Brava Energia SA subsidiaries 3R RNCE and 3R Potiguar, span 38,301 acres and are located near Petro-Victory’s existing holdings.
The fields currently produce 250 barrels per day, with a planned work program aimed at significantly boosting output, Petro-Victory said in a statement.
Originally discovered by Petrobras in 1976, the fields have produced 16.5 million barrels of oil to date with a reported recovery factor of 13.3%.
Under the deal structure, Petro-Victory and ATP will each contribute $7.5 million, with payments staggered over four tranches, including an upfront payment of $600,000 at signing. Additional installments are scheduled at closing, one year, and two years post-closing, along with a gross overriding royalty of 7%.
“This acquisition marks a transformative milestone for Petro-Victory, significantly enhancing our production capacity and increasing our proven reserves,” CEO Richard Gonzalez said in a statement.
Gonzalez added that its updated reserve report will reflect a 50% increase in proven reserves.
The transaction includes existing infrastructure, such as 13 production stations, 40 storage tanks, multiple pumps, and an automated production system in key fields. Petro-Victory cited cost synergies from proximity to its current operations, enabling streamlined logistics and shared services.
The deal is expected to close in the second half of 2025.