Petro-Victory Energy Corp. (TSX-V:VRY) is positioning itself for accelerated growth in Brazil's onshore oil and gas sector through a series of new partnerships and acquisitions that the company says will unlock significant production and free cash flow beginning in 2025.
The company’s strategic shift is anchored by its recently formed joint ventures with capital partners BlueOak Investments, Brazilian energy giant Eneva, and Azevedo Travassos Petróleo S/A (ATE), alongside multiple acquisitions, including 13 oil-producing fields from Brava Energia and the producing Capixaba Energia asset in the Espírito Santo Basin.
"With strategic capital partnerships in place, we have positioned Petro-Victory to realize the significant value across our portfolio, generate free cash flow, and deliver meaningful growth for our shareholders,” CEO Richard Gonzalez said in a statement.
“Our focus remains on disciplined execution, scaling production, and driving profitability and free-cash flow."
Petro-Victory has identified 16 exploration opportunities across 12 blocks, with seven deemed economically viable. As part of its ongoing development strategy, the company plans to drill three wells in 2025 and four in 2026.
A new reserve report is expected later this month.
Upcoming work
Petro-Victory’s 2025 development campaign is fully funded, according to the company. The campaign will focus on major drilling and workover operations in Brazil’s Espírito Santo Basin.
The company will also drill new wells in the Potiguar Basin and advance a gas development project in the São João Field in partnership with Eneva. Under the deal, Eneva will fund the drilling of a non-associated gas well and potentially a 3D seismic survey, with an option to acquire a 72% stake in a joint venture to commercialize the field’s 50.1 billion cubic feet of certified reserves.
Separately, Petro-Victory and BlueOak expect to close their acquisition of Capixaba Energia in the second quarter of 2025. The asset, currently producing 400 barrels of oil equivalent per day, includes four fields and infrastructure that will serve as a regional growth platform.
BlueOak is funding the $17.5 million purchase and committing an additional $5 million for capital expenditures. Petro-Victory will operate the asset and grow its ownership to 50% based on performance, without further capital investment.
In the Potiguar Basin, the company expanded its footprint through two deals with ATE. A June 2024 agreement will see a fully funded drilling program at the Andorinha Field and POT-T-281 block. In February 2025, the partners acquired 13 producing fields from Brava Energia subsidiaries, with gross output of 250 barrels per day and over 125 million barrels of oil-in-place.
'High-quality asset base'
“We have successfully executed multiple development agreements that both fortify our position in Brazil's onshore sector and validates the years of strategic work our experienced Board and management team have invested in building a high-quality asset base,” Gonzalez added.
"The past 12 months have marked significant milestones for Petro-Victory.”