Petro-Victory Energy Corp. (VRY) is excited to announce a strategic collaboration with Eneva for the development of its non-associated gas resources located in the São João field, within the Barreirinhas basin, in the state of Maranhão, Brazil. This Memorandum of Understanding (MOU) signifies a significant step forward for Petro-Victory as it seeks to exploit and commercialize the potential of its gas reserves.
The São João Field, 100% owned and operated by Petro-Victory, boasts non-associated gas reservoirs discovered and tested by a previous operator. A GLJ reserve and resource report, dated December 31, 2023, estimates 50.1 billion cubic feet (1.4 billion cubic meters) of non-associated gas within these reservoirs.
Eneva, a prominent Brazilian integrated energy operator and onshore LNG producer with operations just 250 kilometers from the São João field, will play a key role in this endeavor. Under the MOU, Eneva will assume responsibility for and cover all costs associated with drilling, logging, completing, and testing a single non-associated gas well targeting the Bom Gosto/Arpoador formations, at an estimated depth of 3 kilometers. This commitment is crucial for unlocking the potential of the São João field.
Upon successful completion of the well commitment, Eneva will have the option to further invest by undertaking a 3D seismic data acquisition, processing, and interpretation program encompassing the entire São João field. This step would provide a comprehensive understanding of the field’s subsurface geology and optimize resource development plans.
The culmination of these efforts could lead to the formation of a joint venture (JV) company between Petro-Victory and Eneva. The JV would focus on developing the non-associated gas resources and devising a unified gas monetization strategy. Eneva would hold a 72% stake in the JV, while Petro-Victory retains 28%, ensuring that Petro-Victory receives 100% of the revenue generated from oil production.
It’s important to note that all activities planned under the MOU and the potential formation of the JV will require approval from the National Petroleum Agency, as applicable.
Richard F. Gonzalez, CEO of Petro-Victory, expressed his enthusiasm for this collaboration, stating, “We are thrilled to announce this strategic collaboration with Eneva, a pioneer in the Reservoir-to-Wire business model in Brazil. This Memorandum of Understanding marks a significant milestone for Petro-Victory as we move forward in exploiting and commercializing the non-associated gas resources of our São João field. The collaboration with Eneva not only underscores the potential of the São João field but also aligns with our commitment to unlocking value for our stakeholders through innovative and sustainable energy solutions. We look forward to working closely with Eneva to develop a unified gas monetization strategy at our São João Field.”
This partnership underscores Petro-Victory’s commitment to unlocking the value of its gas resources and contributing to the sustainable energy transition in Brazil. With Eneva’s expertise and commitment, Petro-Victory is well-positioned to capitalize on the opportunities presented by the São João field and deliver long-term value to its stakeholders.
