Petro-Victory expands operations with the acquisition of 13 oil fields in Brazil’s Potiguar Basin

Petro-Victory Energy Corp. has announced the acquisition of 13 oil fields in Brazil’s Potiguar Basin, marking a strategic expansion of its operations in one of the country’s most oil-rich regions. This acquisition, executed in partnership with Azevedo & Travassos Petróleo, is a key move for Petro-Victory as it aims to strengthen its foothold in Brazil’s growing energy sector. The deal, valued at USD 15 million, is set to significantly boost Petro-Victory’s oil production capacity and reserves, positioning the company for long-term growth in Latin America.

A strategic acquisition to boost Brazilian oil production

The newly acquired oil fields, known as Polo Porto Carão and Polo Barrinha, cover approximately 38,301 acres of operational land. These assets were purchased from subsidiaries of Brava Energia S.A.—3R RNCE S.A. and 3R Potiguar S.A.—with Petro-Victory holding a 50% working interest alongside Azevedo & Travassos Petróleo. The acquisition aligns with Petro-Victory’s strategic goal of investing in high-impact, low-risk assets that offer strong growth potential.

The Potiguar Basin acquisition is particularly significant due to its location in Brazil’s most oil-prolific onshore region. These oil fields currently produce 250 barrels of oil per day, and Petro-Victory plans to implement an aggressive work programme aimed at significantly increasing production. This programme will focus on optimising existing wells, enhancing recovery rates, and expanding infrastructure to support higher output levels.

Why the Potiguar Basin acquisition matters

The Potiguar Basin is a critical area for Brazil’s oil industry, with a long history of production and a strong track record of proven reserves. The oil fields acquired by Petro-Victory were originally discovered in 1976 and have produced over 16.5 million barrels of oil to date. Despite this production history, the fields still hold significant untapped potential, with an estimated 125 million barrels of oil in place and a current recovery factor of 13.3%.

Petro-Victory’s acquisition strategy is driven by a comprehensive understanding of the region’s geological and operational landscape. Over the past five years, the company has invested heavily in advanced geological and geophysical studies, including the reprocessing of 3D seismic data covering more than 1,500 square kilometres. This data will play a crucial role in guiding the company’s exploration and production activities in the newly acquired fields, helping to identify new drilling opportunities and optimise recovery techniques.

Operational and financial impact of the acquisition

The acquisition is expected to have an immediate positive impact on Petro-Victory’s production levels and financial performance. The company will gain an additional 125 barrels of oil per day net to its production, with further increases anticipated as a result of planned workover programmes. These programmes will focus on reactivating shut-in wells, implementing secondary recovery techniques, and utilising advanced wellbore diagnostics to identify untapped reserves.

In addition to increasing production, the acquisition includes significant infrastructure assets that will enhance operational efficiency. Petro-Victory will take control of 13 production stations, 40 storage tanks, and a range of pumps and automation systems. The company plans to leverage these assets to streamline logistics, reduce operational costs, and improve overall productivity. The proximity of the new oil fields to Petro-Victory’s existing operations will also create cost synergies, allowing the company to share resources and optimise its supply chain.

Enhancing cost efficiency through operational synergies

One of the key benefits of the Potiguar Basin acquisition is the potential for cost synergies. The newly acquired oil fields are located close to Petro-Victory’s existing assets, enabling the company to consolidate operations and reduce expenses related to logistics, maintenance, and administrative support. This shared infrastructure will help lower per-barrel production costs, improve profit margins, and enhance the company’s competitive position in the Brazilian oil market.

Additionally, the acquisition strengthens Petro-Victory’s bargaining power with suppliers and service providers. By increasing its production capacity and expanding its asset base, the company will be better positioned to negotiate favourable terms and secure cost-effective contracts for equipment, materials, and services. This improved cost structure will contribute to long-term profitability and support the company’s growth objectives.

Future outlook for Petro-Victory’s Brazilian operations

The acquisition is expected to close in the second half of 2025, subject to regulatory approvals from Brazil’s National Agency of Petroleum. Petro-Victory is also commissioning an updated reserve report compliant with National Instrument 51-101 standards, which will provide further insights into the value of the newly acquired assets. This report is anticipated to confirm a significant increase in the company’s proven reserves, reflecting the full potential of the Potiguar Basin acquisition.

Looking ahead, Petro-Victory plans to continue expanding its presence in Brazil through strategic acquisitions and investments in high-potential assets. The company’s focus on operational efficiency, cost management, and technical excellence will be key drivers of its success in the Brazilian oil market. With a strong asset portfolio, a clear growth strategy, and a commitment to sustainable operations, Petro-Victory is well-positioned to capitalise on the opportunities presented by Brazil’s dynamic energy sector.

The acquisition of 13 oil fields in Brazil’s Potiguar Basin represents a major milestone for Petro-Victory Energy Corp. This strategic move not only enhances the company’s production capacity and reserves but also strengthens its position in one of Latin America’s most promising oil markets. As Petro-Victory continues to execute its growth strategy, the Potiguar Basin acquisition will play a central role in driving long-term value for shareholders and contributing to the company’s success in the global energy industry.