Petro-Victory Announces Sale of Non-Operated Assets & Board Changes

Source: www.gulfoilandgas.com 11/11/2020, Location: South America

Petro-Victory Energy Corp. has entered into a binding Purchase and Sale agreement with EnP Ecossistemas Energéticos Holdings S.A ("EnP") for the sale of non-operated assets held by the Company for a consideration of US$3,326,644.

The sale is comprised of:
A 50% non-operated working interest in 5 onshore exploration concessions, as previously announced on October 26, 2018, in the State of Espírito Santo, Brazil. Included in the 5 exploration concessions is Block ES-T-487, where the company and its operating partner, IMETAME Energia Ltda., successfully drilled the 1-VID-ES (Vida) exploration well, as announced on April 7, 2020;

Option to purchase a 50% operating interest in three onshore oil fields (Lagoa Parda, Lagoa Parda Norte and Lagoa Piabanha) in the Espírito Santo Basin, as previously announced on November 25, 2019, for the same proportional amount paid to Petrobras. The consideration is the refund of 7.5% deposit paid, in the amount of US $702,933 and the assumption of all existing debts and liabilities associated with the working interests being sold in the Brazilian exploration concessions and oilfields.

A 10% down payment (US$332,664) has been received from EnP and the payment of the remaining 90% (US$2,993,980) is contingent upon approval of Agencia Nacional do Petroleo Gas Natural e Biocombustiveis of Brazil ("ANP") which is expected in December 2020.

The net proceeds of the transaction will be used for the payment of previously announced acquisition costs, Capex to fund work programs, and general working capital purposes.

Richard F. Gonzalez, Chief Executive Officer of Petro-Victory commented, "This sale allows us to reposition Petro-Victory's production portfolio during the global pandemic, by providing the capital required to increase our working interests and oil production in our core portfolio of high margin producing assets."

Board Changes – Mr. Birken Olson, who has served as a Board Member and Chair of the Audit Committee since 2016, notified the Board of his intention to step down, effective September 30, 2020, to dedicate his time on personal business interests. The Board and Management thank Mr. Olson for his 5 years of service and commitment to Petro-Victory. We are pleased to announce that Mr. Mark Scruggs has accepted an invitation to join the Board as well as Chair the Audit Committee effective October 1, 2020. Mr. Scruggs brings a wealth of knowledge in many business aspects, including his experience as an active oil and gas investor and his corporate finance background. Mr. Scruggs has been a major shareholder in Petro-Victory since 2018.


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