New Brazil Oil Deal Sees Petro-Victory Secure 3.9 Million Boe

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Petro-Victory Energy Corp., in partnership with BlueOak Investments, has successfully finalized the acquisition of Capixaba Energia LTDA, a strategic addition to its portfolio in Brazil’s Espírito Santo Basin. The $17.5 million deal, now closed, marks a significant milestone in Petro-Victory’s expansion within the South American oil and gas landscape, especially onshore.

BlueOak Investments fully funded the transaction, underscoring the trust in the long-term productivity and economic potential of Capixaba Energia’s assets. This acquisition includes four producing fields, Lagoa Parda, Lagoa Parda Norte, Lagoa Piabanha, and Lagoa Piabanha Norte, along with two additional exploration blocks. These assets position Petro-Victory with immediate production upside and operational control.

A breakdown of the assets and financial structure behind the deal

The deal encompasses a set of mature oil fields with a proven track record of production. Capixaba Energia’s fields have collectively produced 38 million barrels of oil to date. More importantly, the independent reserves report points to 2.7 million barrels of proved reserves and 3.9 million barrels of proved plus probable reserves (boe). The pre-tax net present values are $66.6 million and $91.9 million, respectively, signaling considerable long-term value well beyond the acquisition cost.

Petro-Victory is now the full operator of these fields. The transfer of 100 percent working interest and operatorship allows the company to immediately integrate the assets into its operating structure and begin deploying optimization strategies across its expanded portfolio.

Why the Capixaba Energia deal aligns with Petro-Victory’s strategic goals

This acquisition fits squarely into Petro-Victory’s broader Brazil-focused development strategy. The Espírito Santo Basin, which lies just north of the prolific Campos Basin, offers a favorable regulatory environment, existing infrastructure, and long-life reserves, all crucial ingredients for a low-risk, high-reward operational model.

For BlueOak Investments, the deal reflects a long-term commitment to energy sector exposure with controlled risk and high yield. By fully funding the transaction, BlueOak has positioned itself as a critical partner in Petro-Victory’s strategic development plan. Their involvement is not only financial but also part of a broader vision for growing high-quality, onshore assets in stable jurisdictions.

Petro-Victory’s operational roadmap for the newly acquired fields

Following the closing of the transaction, Petro-Victory is expected to deploy enhanced recovery techniques and introduce digital optimization technologies to improve field productivity. Immediate plans involve reviewing the existing infrastructure, re-entering select wells, and prioritizing low-cost production enhancement methods.

The Lagoa Parda Cluster, now central to the company’s onshore strategy, benefits from nearby processing and transportation infrastructure. This allows Petro-Victory to minimize logistics costs and capitalize on current market prices with reduced downtime or transportation bottlenecks.

As an operator, the company will also look to streamline its capital expenditures while maximizing output per well. The exploration blocks included in the deal provide potential for long-term upside, pending further seismic interpretation and targeted drilling campaigns.

Brazil’s onshore oil and gas sector is experiencing renewed investor interest, largely driven by privatization of mature fields and a push for foreign capital in upstream development. With the addition of Capixaba Energia’s assets, Petro-Victory becomes a more formidable mid-tier player in Brazil, bridging the gap between junior explorers and larger national operators.

Sources:

• Offshore Technology