Petro-Victory Energy has announced the completion of the acquisition of Capixaba Energia in partnership with BlueOak Investments, strengthening its position in Brazil’s onshore energy sector.
The two companies signed an agreement for the acquisition last month.
The acquisition adds substantial free cash flow and production growth to Petro-Victory’s portfolio. It is the first to be completed under the partnership with BlueOak, Petro-Victory’s strategic financial partner.
BlueOak has fully funded the initial payments for the acquisition and has committed to additional capital expenditures to enhance production and operational efficiency.
The acquisition provides Petro-Victory with immediate production growth, strategic infrastructure, financial and operational backing, and proven reserves with exploration upside.
Petro-Victory CEO Richard F. Gonzalez said: “The closing of the Capixaba Energia acquisition marks a major milestone for Petro-Victory and a testament to the strength of our strategic partnership with BlueOak Investments.
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By GlobalData“This transaction enhances our operational position in Brazil, delivering immediate positive cash flowing production, critical infrastructure and significant future upside. With BlueOak’s financial backing and our operational expertise, we are well-positioned to unlock value, optimise profitability, production, and drive long-term growth for our shareholders.”
Capixaba Energia’s assets, currently producing around 400 barrels of oil equivalent per day, come with a fully funded workover and drilling campaign.
The acquisition also encompasses four producing oil fields including the Lagoa Parda Cluster, and two exploration blocks with high potential situated near major producing assets.
BlueOak CEO Meton Morais said: “Our partnership with Petro-Victory reflects our long-term conviction in the Brazilian energy market and our belief in the value that disciplined, performance-driven investment can unlock.
“Capixaba Energia represents the kind of asset we seek – profitable, producing, scalable production that is strategically located. We are proud to back this transaction and look forward to accelerating growth through continued collaboration with Petro-Victory.”
An independent reserves report of oil and gas assets owned by Capixaba Energia was completed earlier this month by GLJ, Petro-Victory’s auditor.
The GLJ Report outlines proved plus probable plus possible (3P) reserves of 5.3 million barrels of oil equivalent (mboe) with a pre-tax net present value of $116.3m ($21.9/boe).
In a related development, Petro-Victory recently signed a sale purchase agreement to acquire 13 oil fields in Brazil’s prolific Potiguar Basin in partnership with Azevedo & Travassos Petroleo.
These fields, part of the Polo Porto Carão and Polo Barrinha, are being acquired from 3R RNCE and 3R Potiguar, which are subsidiaries of Brava Energia.
