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Petro-Victory Energy Corp. (“Petro-Victory” or the “Company”) announces the results of the first well of its 2022 drilling program in Brazil.
The Company commenced operations at the GALP-06 well within the 100% working interest Andorinha production concession in the Potiguar Basin, Northeast Brazil, on 20th June 2022, using the MAPEEN-01 drilling rig. The GALP-06 well is located approximately 3km SW from the producing oil wells at Andorinha and targeted a separate structural closure from the accumulations found at the main Andorinha field.
The well was successfully drilled and cased down to 1272m. Conventional wireline logging tools identified 13m of potential net pay across seven Cretaceous-aged sandstone reservoirs from depths of 1130m to 1230m. Five of the seven zones were isolated for individual testing and reservoir fluid identification. While two reservoir intervals recovered oil to the surface, and one reservoir recovered gas to the surface, none of the five individual tests yielded a commercial discovery of hydrocarbons.
The GALP-06 well is now in the process of being suspended, allowing for the potential to re-enter and resume testing at a later date should Petro-Victory management decide to return to the well in the future.
While final costs for the well are being calculated, the Company estimates that the well was drilled for 25% less than the original well AFE. These cost savings, achieved through operational efficiency, are very encouraging and have a positive read-through for the remainder of the 2022 drilling campaign.
On completion of the GALP-06 well suspension, the MAPEEN-01 drilling rig will undergo an estimated two weeks of maintenance before mobilizing to the PVE-01 development well in the Andorinha oil field.
“Despite recovering hydrocarbons to the surface, Galp-06 testing did not produce commercial results. While disappointing, the Company was able to achieve significant cost savings and deliver an under-budget well based on the AFE. Successfully and safely drilling, casing, and testing our first well in Brazil is a great accomplishment for our team and establishes a concrete operating platform to execute the remaining three wells in our 2022 drilling program.
The Company is now moving to the development of drilling opportunities at our Andorinha field, starting with the PVE-01 well. We are excited about the production potential of our Andorinha field and look forward to updating the market following the commencement of operations at PVE-01. The aim of the campaign is to significantly increase the oil production and revenue generation of the Company at a time where higher oil prices will drive higher profitability.”
Petro-Victory Energy Corp. is engaged in the acquisition, development, and production of crude oil and natural gas resources in Brazil. The company holds 100% operating and working interests in thirty-eight (38) licenses totaling 257,604 acres in two (2) different 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.
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