Petro-Victory expands presence onshore Brazil through Capixaba Energia acquisition
Petro-Victory Energy Corp., Dallas, has agreed to acquire Capixaba Energia LTDA, an integrated onshore Brazilian production company, $17.5 million.
The move comes on the heels of a joint venture agreement between Petro-Victory and Blue Oak Investments in February to establish terms and conditions governing the acquisition.
With the deal, Petro-VIctory gains four oil fields in the Espírito Santo basin (including Lagoa Parda Cluster) plus two exploration blocks adjacent to ‘major’ producers, the companies said in a release Mar. 6.
Capixaba currently produces about 400 boe/d (88% oil). A workover and drilling campaign targeting proven reserves is planned, which could grow production ‘substantially’ within the next 12-18 months, Petro-Victory said.
BlueOak will fund 100% of the acquisition and will be the controller, while Petro-Victory will be the operator. Petro-Victory will begin with a nominal equity position at closing and will become a relevant equity holder (20% and then 50%), upon reaching certain thresholds.
Outside of the newly acquired assets, Petro Victory Energy currently holds 100% operating and working interests in 38 licenses totaling 257,604 acres in two producing basins in Brazil.
“The acquisition of Capixaba Energia marks a strategic milestone in our expansion, as we establish a hub of production and expertise in the Espírito Santo region,” said Richard F. Gonzalez, Petro-Victory chief executive officer.
“This acquisition strengthens our position in Brazil, firmly establishing Espírito Santo basin as a key area for production growth and complementing our presence in the Barreirinhas and Potiguar basins, where we are already well-positioned.”
The deal is expected to close in this year’s second quarter.
