Petro-Victory Energy Partners with Eneva to Boost Gas Resources

Strategic Collaboration for Gas Resource Development

Petro-Victory Energy Corp. (TSXV: VRY) has entered into a significant Memorandum of Understanding (MOU) with Eneva, aimed at advancing the development of non-associated gas resources. This collaboration is centered around the São João field, an area rich in untapped potential.

Highlights of the MOU

The São João Field has been home to previous operations that successfully discovered and tested substantial non-associated gas reservoirs. Notably, a recent reserve report indicates that this field alone is estimated to hold over 50.1 billion cubic feet of gas. Under the terms of this MOU, Eneva, a leading integrated energy player in Brazil, will take on various responsibilities tied to the development of these resources.

Eneva's Role and Responsibilities

As part of this partnership, Eneva will handle the entire financial burden associated with drilling a well targeting the Bom Gosto/Arpoador formations, positioned approximately 3 kilometers deep. This commitment marks an important stride toward unlocking the gas potential in São João Field.

The Joint Venture Opportunity

Following the drilling phase, Eneva will also have the opportunity to conduct a comprehensive 3D seismic survey across the entire São João Field. This initiative will inform the decision for establishing a joint venture, with Petro-Victory retaining a 28% stake. The prospect of creating a unified strategy for gas monetization bodes well for both parties.

Regulatory Oversight and Compliance

All activities outlined in this MOU, including the formation of a joint venture, will require oversight and approval from the National Petroleum Agency to ensure compliance with regulatory standards. This layer of authority underpins the operations, providing vital assurance to stakeholders.

About Eneva

Eneva stands as a prominent force in the Brazilian energy sector, operating on the New Markets Segment of the B3 stock exchange. The company has developed a sustainable model known as the Reservoir-to-Wire business model, transforming natural gas into usable electrical energy. They maintain a substantial production capacity, currently handling around 317 million cubic feet per day, with plans for an expansion by 2026.

Eneva's Commitment to Innovation

With over 51,000 square kilometers of concession contracts, Eneva operates numerous natural gas fields and boasts significant thermoelectric capacity, providing reliability in energy production. Its ongoing projects illustrate a commitment to meeting future energy demands while supporting Brazil's energy transition.

CEO Richard F. Gonzalez's Vision

Richard F. Gonzalez, CEO of Petro-Victory, expressed enthusiasm regarding the partnership, highlighting its potential to harness the capabilities of both companies. The MOU reflects a strategic milestone, paving the way for innovative solutions and sustainable energy solutions aimed at maximizing value for stakeholders.

About Petro-Victory Energy Corp.

Petro-Victory Energy Corp. is dedicated to the exploration and production of crude oil and natural gas resources in Brazil. The company operates a total of thirty-eight licenses covering over 257,000 acres within two producing basins. By focusing on high-impact, low-risk assets, Petro-Victory strives to create solid returns for its shareholders, trading under the ticker symbol VRY.

Frequently Asked Questions

What is the focus of the partnership between Petro-Victory and Eneva?

The partnership aims to develop non-associated gas resources in the São João Field, enhancing energy production and resource management.

What roles will Eneva undertake in this collaboration?

Eneva will handle the costs for drilling a well and conducting seismic surveys, ultimately leading to a potential joint venture with Petro-Victory.

How does this partnership align with industry regulations?

All activities governed by this MOU will require oversight from the National Petroleum Agency, ensuring compliance with relevant laws and regulations.

What is Eneva's production capacity?

Eneva currently has a natural gas production capacity of approximately 317 million cubic feet per day, with expansion projects underway.

What type of resources does Petro-Victory focus on?

Petro-Victory is primarily involved in the acquisition and development of crude oil and natural gas resources, emphasizing sustainable and low-risk investments.

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