Petro-Victory Energy has signed a sales & purchase agreement (SPA) in 50/50 partnership with Azevedo & Travassos Petroleo (ATO) for 13 oil fields located in the Potiguar Basin, onshore Brazil, from seller Brava Energia.
Key highlights:
- Oil fields: 13 oil fields with fully operational production facilities comprising 38,301 acres
- Location: Onshore Brazil, Potiguar Basin, strategically located adjacent to Petro-Victory's existing assets(Fig. 1)
- Production: Current production of 250 bopd with a high-impact work program to significantly increase oil production.
- Reported statistics: National Agency of Petroleum has reported volume of oil in place 125 million bbls, recovery factor 13.3%
- Total acquisition value: USD $15 million (net USD $7.5 million for Petro-Victory)
"This acquisition marks a transformative milestone for Petro-Victory, significantly enhancing our oil production capacity and increasing our proven reserves,” said Richard F. Gonzalez, CEO of Petro-Victory. “We expect the updated reserve report will increase our proven reserves by 50%. It also maximizes the substantial investments made by our Subsurface, Engineering, and Operations teams over the past five years in the Potiguar Basin. Through disciplined strategy and technical expertise, we have built a strong position and deep understanding of this oil prolific basin. We are pleased to further strengthen our partnership with ATP through this acquisition, reinforcing our commitment to unlocking the full potential of the Potiguar Basin."
The acquisition aligns with Petro-Victory's strategy to generate accretive shareholder value through disciplined investments in high-impact, low-risk assets in Latin America.
The Potiguar Basin is the most oil prolific basin onshore Brazil, and the newly acquired fields increase Petro-Victory´s production and reserves.
Petro-Victory currently has 3 oil producing fields and 34 exploration blocks in the Potiguar basin. Over the past 5 years, Petro-Victory has reprocessed and merged 12 volumes of 3D seismic data covering more than 1,500 km2 in the Potiguar basin including volumes which cover the acquired fields. Petro-Victory has also performed an extensive hydrocarbon basin analysis, as well as an in-depth Geological, Geophysical and Petrophysical interpretation.
Brava originally purchased the 13 oil fields from Petrobras between the years 2020 and 2022. The fields were discovered in 1976 by Petrobras and have produced 16.5 million barrels of oil to date with a 13.3% recovery factor.
The transaction is expected to close in the second half of 2025 subject to customary closing conditions and regulatory approvals with the National Agency of Petroleum in Brazil.
