Petro-Victory Energy Corp. (TSX-V:VRY) and Azevedo & Travassos Energia (AZTE) are set to expand their presence in Brazil’s Potiguar Basin with the acquisition of 13 onshore oil fields, aiming to ramp up production from 250 barrels of oil equivalent per day (boe/d) to as much as 1,000 boe/d.
The companies have partnered in a 50-50 venture to acquire the fields from Brava Energia SA subsidiaries 3R RNCE and 3R Potiguar for $15 million.
The transaction, announced Monday, spans 38,301 acres and strengthens their existing operations in the region.
AZTE CEO Ivan Carvalho told Brasil Energia that the company plans to enhance production at the Porto Carão and Barrinha clusters through secondary recovery methods, such as water injection, and stimulation techniques like acidification and fracturing. Some idle wells will be reactivated immediately, with additional drilling under consideration.
The acquisition structure includes staggered payments over four tranches, starting with an initial $600,000 payment at signing. The deal also features a 7% gross overriding royalty.
Projected increase in proven reserves
Petro-Victory CEO Richard Gonzalez called the acquisition a "transformative milestone," highlighting a projected 50% increase in proven reserves.
Pending regulatory approval by Brazil’s National Agency of Petroleum, Natural Gas and Biofuels (ANP), the deal is expected to close in the second half of 2025. In the meantime, Brava will continue operating the fields, with joint engineering efforts ensuring a smooth transition.
Initial production will be sold to the Clara Camarão refinery, with proceeds deducted from the purchase price.
Infrastructure at the sites includes 13 production stations, 40 storage tanks, multiple pumps, and automated production systems, providing a foundation for the planned expansion.
With a seven-year exclusive drilling rig contract in place, AZTE and Petro-Victory are positioning themselves for a significant production boost, reinforcing their long-term commitment to Brazil’s onshore oil sector.