- Petro-Victory Energy (TSXV:VRY) has struck oil at its Vida exploration well in the Espírito Santo Basin, Brazil
- The well is the company’s first exploration well in Brazil
- A total of 1,890 metres was drilled, revealing high-quality oil-bearing Cretaceous sandstone reservoirs
- The well will be suspended while other activities are undertaken, with a view to commence production in the third quarter of this year
- Petro-Victory Energy (VRY) is currently up 25 per cent to C$0.50 per share, with a market cap of $3.39 million
Petro-Victory Energy (TSXV:VRY) has struck oil at its Vida exploration well in the Espírito Santo Basin, Brazil.
With both onshore and shallow-water operations, the company is primarily focused on the acquisition, development and production of crude oil and natural gas resources in Brazil. In total, Petro-Victory has a working interest in 28 licenses in four oil-producing basins.
Located in Block ES-T-487 of the Espírito Santo Basin, the Vida well is the company’s first exploration well in Brazil. A total of 1,890 metres was drilled at the onshore site, revealing high-quality oil-bearing Cretaceous sandstone reservoirs.
The well also encountered 49 metres of net oil pay, exceeding Petro-Victory’s pre-drill estimate of 855,000 barrels of recoverable oil. While oil pay was found across the entire drill depth, the majority is held between 1,560 and 1,660 metres.
Petro-Victory’s next steps will be to suspend the mine while data from the oil discovery is evaluated. The company will also update its recoverable resource estimate, formulate a testing program and source a workover rig to conduct the testing program.
Once these steps are completed, the Vida well will be ready to commence production in the third quarter of this year. Petro-Victory has forecast its operating expenses to be between US$10 and $12 per barrel, which should generate positive cash flow and profitable netbacks at current oil prices.
Richard Gonzalez, CEO of Petro-Victory Energy, thanked the company’s partner, Imetame Energia, for their assistance in drilling the Vida well.
“Making a significant oil discovery in our first Brazil exploration well is an excellent result for our shareholders.
“We will now work steadfastly to bring our Vida well online while preparation commences for the drilling of our second exploratory well, Sintonia,” he said.
Petro-Victory Energy (VRY) is currently up 25 per cent to C$0.50 per share at 11:08am EST.