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CALGARY, AB, May 3, 2021 /CNW/ - Petro-Victory
Energy Corp. (TSXV: VRY) ("Petro-Victory"
or "Company") is delighted to announce independently
certified reserves for the first time in the Company's history.
As of December 31, 2020, total
proved plus probable ("2P") reserves of 2.827 MMBO and a before-tax
value discounted at 10% of US$90.386
million has been assigned to the company for the Andorinha,
Carapitanga, and Sao Joao oil fields in Brazil. This represents a 2P Net Asset Value
of CAD$12.18/share on an undiluted
basis (9,214,020 shares outstanding). The reserves data set forth
herein is based on an independent reserve assessment and evaluation
prepared by GLJ, Ltd. dated April 13,
2021 with an effective date of December 31, 2020.
Reserve Report Highlights:
- Proved Reserves ("1P"), Proved Plus Probable Reserves ("2P"),
and Proved Plus Probable Plus Possible Reserves ("3P") only
calculated for 3 of the Company's 20 assets.
- Net 1P Reserves of 1,103,000 BO with a PV10 valuation of
US$34,802,000 or CAD$4.69/share
- Net 2P Reserves of 2,827,000 BO with a PV10 valuation of
US$90,386,000 or CAD$12.18/share
- Net 3P Reserves of 4,011,000 BO with a PV10 valuation of
US$127,332,000 or CAD$17.16/share.
Richard F. Gonzalez, Chief
Executive Officer of Petro-Victory commented, "The certified
Reserve Report reflects the material shareholder value increase
that our team has been building since our arrival in Brazil.
Our current focus is on executing the 2021 drilling and work-over
program to significantly increase our oil production, cash flow and
profitability. We remain diligent and active in our pursuit
to acquire and increase our portfolio of low risk high impact
onshore oil fields. We are also very pleased that our
Brazilian operations are generating positive cash flow. We
thank our shareholders and stakeholders for their continued support
and trust."
OTHER CORPORATE MATTERS
The Company also announces that, subject to regulatory approval,
it has granted a total of 100,000 options to purchase common
shares of Petro-Victory to an officer of the Company, with an
exercise price of CAD$0.38 and an
expiry date of March 30, 2026. The
Company relied on section 5.5(b) of Multilateral Instrument 61-101
as the exemption from the formal valuation requirements of MI
61-101 in respect of the grant of options to the officer of the
Company as the common shares of the Company are not listed on a
specified market (and the common shares are only listed on the TSX
Venture Exchange). The Company relied on section 5.7(a) of MI
61-101 as the exemption from the minority approval requirements of
MI 61-101 in respect of the grant of options to the officer of
the Company as neither the fair market value of the subject
matter of, nor the fair market value of the consideration for, the
grant of the options to the officer of the Company exceeded 25% of
the Company's market capitalization.
About Petro-Victory Energy Corp.
Petro-Victory Energy Corp. is engaged in the acquisition,
development, and production of crude oil and natural gas resources
in Brazil. The company is a
certified onshore and shallow water operator in Brazil and holds working interests in twenty
(20) licenses totaling 129,771 acres in three (3) oil producing
basins in Brazil. Petro-Victory
generates accretive shareholder value through disciplined
investments in high impact, low risk assets. The Company's Common
Shares trade on the TSX Venture Exchange ("TSXV") under the ticker
symbol VRY.v.
Cautionary Note
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts
responsibility for the adequacy
or accuracy of this release.
Advisory Regarding Forward-Looking Statements
In the interest of providing Petro-Victory's shareholders and
potential investors with information regarding Petro-Victory's
future plans and operations, certain statements in this press
release are "forward-looking statements" within the meaning of the
United States Private Securities Litigation Reform Act of 1995 and
"forward-looking information" within the meaning of applicable
Canadian securities legislation (collectively, "forward-looking
statements"). In some cases, forward-looking statements can be
identified by terminology such as "anticipate", "believe",
"continue", "could", "estimate", "expect", "forecast", "intend",
"may", "objective", "ongoing", "outlook", "potential", "project",
"plan", "should", "target", "would", "will" or similar words
suggesting future outcomes, events or performance. The
forward-looking statements contained in this press release speak
only as of the date thereof and are expressly qualified by this
cautionary statement.
Specifically, this press release contains forward-looking
statements relating to but not limited to: the Company offerings,
our business strategies, plans and objectives, and drilling,
testing and exploration expectations. These forward-looking
statements are based on certain key assumptions regarding, among
other things: our ability to add production and reserves through
our exploration activities; the receipt, in a timely manner, of
regulatory and other required approvals for our operating
activities; the availability and cost of labor and other industry
services; the continuance of existing and, in certain
circumstances, proposed tax and royalty regimes; and current
industry conditions, laws and regulations continuing in effect (or,
where changes are proposed, such changes being adopted as
anticipated). Readers are cautioned that such assumptions, although
considered reasonable by Petro-Victory at the time of preparation,
may prove to be incorrect.
Actual results achieved will vary from the information provided
herein as a result of numerous known and unknown risks and
uncertainties and other factors. These and additional risk factors
are discussed in our Final Prospectus dated July 11, 2014, as filed with Canadian securities
regulatory authorities at www.sedar.com.
The above summary of assumptions and risks related to
forward-looking statements in this press release has been provided
in order to provide shareholders and potential investors with a
more complete perspective on Petro-Victory's current and future
operations and such information may not be appropriate for other
purposes. There is no representation by Petro-Victory that actual
results achieved will be the same in whole or in part as those
referenced in the forward-looking statements and Petro-Victory does
not undertake any obligation to update publicly or to revise any of
the included forward-looking statements, whether as a result of new
information, future events or otherwise, except as may be required
by applicable securities law.
SOURCE Petro-Victory Energy Corp.