Petro-Victory Energy Corp. (TSX-V:VRY) said on Tuesday it has completed the acquisition of Capixaba Energia LTDA, a producing oil and gas asset in Brazil's Espírito Santo Basin, marking the first transaction under its strategic partnership with BlueOak Investments.
The deal, initially announced in March, provides Petro-Victory with immediate cash-generating production, critical infrastructure, and long-term growth potential, the company said in a statement.
“This transaction enhances our operational position in Brazil, delivering immediate positive cash flowing production, critical infrastructure, and significant future upside,” said Petro-Victory CEO Richard Gonzalez.
“With BlueOak’s financial backing and our operational expertise, we are well-positioned to unlock value, optimize profitability, production, and drive long-term growth for our shareholders.”
Capixaba Energia includes four producing oil fields, among them the Lagoa Parda Cluster, and two high-potential exploration blocks. The asset is currently producing about 400 barrels of oil equivalent per day and a funded workover and drilling campaign is expected to boost output.
An independent reserves report by GLJ estimated Capixaba Energia’s proved reserves at 2.7 million barrels of oil equivalent with a pre-tax net present value of $66.6 million. Proved plus probable reserves were pegged at 3.9 million boe, with a value of $91.9 million.
BlueOak fully funded the initial acquisition and committed to additional capital spending to expand production. Petro-Victory will act as operator under a joint venture arrangement, initially holding a nominal stake that can increase to 50% based on performance milestones.