Petro-Victory Energy said oil production at Capixaba Energia rose from 256 to 583 barrels per day during the first year of operations at the Brazilian joint venture, an increase of 128%. Gas production rose 471% over the same period, according to the company's release.
The Dallas-based, TSX Venture-listed producer announced the Capixaba acquisition and partnership on 29 April 2025 and published the first-year operating results on 13 August 2026.
Capixaba Energia owns the Lagoa Parda Cluster in the Espírito Santo Basin in Brazil, plus two adjacent exploration blocks. It is held jointly with Blue Oak Investments, an investment partner Petro-Victory first tied up with on 7 January 2025 before signing a joint venture agreement on 28 February 2025. The release does not state how the ownership of Capixaba is split between the two partners.
On costs, the company reported that production costs fell 37%, from US$25.8 to US$16.3 per barrel. It also said the weighted-average discount applied to its oil sales narrowed by six percentage points, from 17.3% to 11.3%, which improves the price actually realised per barrel.
Petro-Victory said Capixaba generated R$17 million of free cash flow from operations, all of which was reinvested in the asset. The release gives no dollar equivalent, no revenue figure, and no indication of how much of that cash flow is attributable to Petro-Victory rather than to the joint venture as a whole. No consolidated financial statements, cash balance or share count accompany the figures.
Workovers rather than new wells
The production increase came from reworking existing wells rather than drilling. A workover campaign — intervention on wells already drilled, to restore or increase flow — covered a technical assessment of more than 20 wells and their electric submersible pump systems.
The company said three wells, LP-38, LP-73 and LP-77D, were validated and that the Upper Urucutuca was confirmed as a new commercial horizon, meaning a producible interval, without additional drilling. Petro-Victory also completed seismic reprocessing and inversion work and ran cased-hole logging tools, including oil saturation measurement, to look for hydrocarbons bypassed by earlier production.
Petro-Victory reported 98.7% operational efficiency during the campaign, with 2,682 productive hours against 35 hours of non-productive time, and no accidents.
On the surface side, the company said water injection capacity increased 67%, from about 12,000 to 20,000 barrels per day, without additional capital spending. Water injection is used to maintain reservoir pressure in mature fields. Other changes listed include upgrades to separation, flotation, control valve and fiscal metering systems at Lagoa Parda, coalescing filters to improve produced gas quality, a switch to Brazil's free energy market, fleet optimisation, and remote monitoring with centralised operational controls.
What the release does and does not establish
Chief executive Richard F. Gonzalez said the results validate the operating model and Petro-Victory's ability to work with institutional capital. "We increased oil production by 128%, grew gas production by 471%, and reduced production costs by 37%, while validating new reservoirs without additional drilling," he said in the release.
The figures are the company's own and are not presented as audited or as reconciled to reported financial statements. Free cash flow is a non-standard measure that the release does not define, and the reporting period is described only as the first year of operations, without start and end dates.
Petro-Victory describes the Capixaba approach as a repeatable template for acquiring and revitalising mature onshore assets in Brazil and Latin America. The release names no specific additional acquisition target, timeline or budget for that expansion.
The company said its portfolio as of the filing date comprises 31 concession contracts covering 210,583 net acres, plus four concessions and 11,413 acres held jointly with Blue Oak in Capixaba. Its shares trade on the TSX Venture Exchange under the symbol VRY.
Source: PR Newswire
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