Petro-Victory Energy Corp. is pleased to provide an operational update on the Company's 100%-owned Andorinha Field in the Potiguar Basin, onshore Brazil.
Operations and Facilities update
Andorinha Field Facilities Expansion
The Company has commenced work on the expansion of production facilities and oil storage capacity at the 100% operated Andorinha field with an expected completion during Q4 2022. The project has been undertaken to expand the capacity of the current facilities on the Andorinha field and to provide the Company with the necessary storage and water handling as production increases from the current and future planned drilling campaigns.
Current facilities at Andorinha have oil storage capacity of 60m3. Under the new project, storage capacity will triple to 180m3.
Andorinha Solar Project
As announced on August 11, 2022, the Company entered into a contract with a local renewable energy infrastructure provider to install a solar array at its Andorinha oil field (the "Andorinha Solar Project" or the "Project"). Installation is now complete and the start of clean energy generation is expected within 2 weeks.
Petro-Victory estimates that the Andorinha Solar Project will reduce Scope 2 emissions by approximately 60 tons of CO2 per year, lowering the carbon intensity of the Company's produced barrels of oil.
The Project will eliminate electricity expenses, the major operating cost of the Andorinha field, increasing the netback (profit margin per barrel of oil) for the Company.
Production & Drilling update
Current Production
The Andorinha field is averaging production of 30 BOPD in 2022 (January to August) from 4 wells (AND-01, GALP-01, GALP-30, and GALP-38). The field has produced more than130,000 barrels of oil since discovery, and the field remains in the early stages of primary recovery with a total of 1.958MMBO of 2P oil reserves to recover over the life of the field according to the Company's independent reserve auditor, GLJ.
PVE-01 Well
Production testing on PVE-01 is expected to commence within the next 30 days. After testing, the PVE-01 well will be tied into the existing production facilities at Andorinha.
Upcoming PVE-02 and PVE-03 Wells
The Company is currently sourcing an alternative drilling rig for the upcoming PVE-02 and PVE-03 wells at Andorinha. The PVE-02 and PVE-03 wells are already drilled and cased to ~280m and each require 1,000m of drilling with an 8.5" hole section. In addition, all PVE-02 and PVE-03 long lead items and materials have already been delivered and are stored at the Company's storage facilities at Andorinha.
Richard F. Gonzalez, Petro-Victory CEO commented:
"The expansion of the facilities at Andorinha is a strategic decision placing the company in a position of strength, maintaining our discipline and focus on investment in high potential, low-risk assets, which in this case, unlock value from our portfolio in the Andorinha field. I am very proud of all of our team-members who work collaboratively to create value for our stakeholders."
