/NOT FOR DISTRIBUTION TO
São João oil field (Petro-Victory 50% Working Interest)
As previously announced, Petro-Victory acquired a 50% working interest in the São João oil field in Q4 2019 for a total cost of
In Q4 2019 and Q1 2020 the Company, with its operating partner Oeste de Canoas Petróleo e Gás Ltda, installed production facilities at the field area, including storage tanks, flow lines, road access, and general civil and mechanical work. A workover rig was mobilized in Q2 2020 to commence production testing. In November, the field is currently averaging production of 70 BOPD (35 BOPD net to Petro-Victory) from 3 wells (SJ-01, SJ-06, and SJ-11), and production is expected to increase in the short-term following the installation of artificial lift systems at the SJ-01 and SJ-11 wells.
Successful Workovers
The Company has re-entered 3 suspended oil wells (SJ-01, SJ-06, and SJ-11) and completed oil production testing in line with its work program commitments with the Agencia Nacional do Petroleo Gas Natural e Biocombustiveis of
The SJ-01 well was re-entered and brought online without artificial lift and has produced over 3,000 barrels of 36o API light oil over a 6-month period until
The SJ-06 well was re-entered and tested and has produced over 2,800 barrels of 36o API light oil over a 5-month period until
The SJ-11 well was re-entered for testing and was brought online on 26th October without artificial lift. In the period between 26th October and 15th November the well has averaged 46 BOPD. Due to the strong production performance from SJ-11 the well will be allowed to produce without artificial lift until the end of November, when SJ-11 will be temporarily suspended to install a progressive cavity pump (PCP) system to provide artificial lift. The SJ-11 well is geologically similar to the SJ-06 well and is expected to perform in a comparable fashion when installed with the PCP system
Short-Term Work Program
Following installation of the PCP system at SJ-11 in November/December, the workover rig will be mobilized to the producing SJ-01 well for installation of the third PCP system at the field.
An updated development plan for the São João field has been submitted to the ANP at their request following the declaration of commerciality and the commencement of commercial production resulting from the successful workovers at SJ-01, SJ-06, and SJ-11. On approval, the Company will announce any future additional work program items and will keep the market updated on the progress at the upcoming workovers on SJ-11 and SJ-01.
Oil Sales / Commercial
Petro-Victory has achieved payback of initial acquisition cost and capital expenditures at the São João field and is netting back
Daily Production Update
The Company is currently in the process of applying for workover and drilling permits for its 100% working interest field, Andorinha, and will update shareholders on the progress at this field in the near future. Net production in the month of November across the Petro-Victory portfolio is currently averaging 52 BOPD (35 BOPD at São João, 4.5 BOPD at Carapitanga, and 12.5 BOPD at Andorinha).
Work will be focused initially on the São João and Andorinha fields to increase production, as well as plans to bring online the 100% owned Alto Alegre and Trapia fields in the short-term, in addition to performing workovers at the producing Carapitanga field.
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Cautionary Note
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
Advisory Regarding Forward-Looking Statements
In the interest of providing Petro-Victory's shareholders and potential investors with information regarding Petro-Victory's future plans and operations, certain statements in this press release are "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-looking information" within the meaning of applicable Canadian securities legislation (collectively, "forward-looking statements"). In some cases, forward-looking statements can be identified by terminology such as "anticipate", "believe", "continue", "could", "estimate", "expect", "forecast", "intend", "may", "objective", "ongoing", "outlook", "potential", "project", "plan", "should", "target", "would", "will" or similar words suggesting future outcomes, events or performance. The forward-looking statements contained in this press release speak only as of the date thereof and are expressly qualified by this cautionary statement.
Specifically, this press release contains forward-looking statements relating to but not limited to: our business strategies, plans and objectives, and drilling, testing and exploration expectations. These forward-looking statements are based on certain key assumptions regarding, among other things: our ability to add production and reserves through our exploration activities; the receipt, in a timely manner, of regulatory and other required approvals for our operating activities; the availability and cost of labor and other industry services; the continuance of existing and, in certain circumstances, proposed tax and royalty regimes; and current industry conditions, laws and regulations continuing in effect (or, where changes are proposed, such changes being adopted as anticipated). Readers are cautioned that such assumptions, although considered reasonable by Petro-Victory at the time of preparation, may prove to be incorrect.
Actual results achieved will vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. These and additional risk factors are discussed in our Final Prospectus dated
The above summary of assumptions and risks related to forward-looking statements in this press release has been provided in order to provide shareholders and potential investors with a more complete perspective on Petro-Victory's current and future operations and such information may not be appropriate for other purposes. There is no representation by Petro-Victory that actual results achieved will be the same in whole or in part as those referenced in the forward-looking statements and Petro-Victory does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities law.
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