Petro Vista To Earn 37.5% Stake In Brazil Field

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Estimated Price
MM
Description

Gained right to request 37.5% WI in Tartaruga Field in Sergipe Basin, Brazil.

Petro Vista Energy Corp., Vancouver, (Toronto Venture: PTV) has earned the right to request a 37.5% working interest in Tartaruga Field in Sergipe Basin, Brazil following work on the field.

The assignment of this working interest is subject to several conditions, including approval from the consortium members and the Agencia Nacional do Petroleo, Gas Natural e Biocombustiveis. The company is awaiting receipt of these approvals.

In Tartaruga Field, the operator, UP Petroleo Brasil Ltda., currently has a workover rig on location to install electrical submersible pumps in the two existing production wells in the field. These pumps are expected to enhance production. These operations are expected to be completed by the end of May at which point an update will be issued.

Petro Vista is looking to exit from its Colombian operations to focus primarily on the development and appraisal of Tartaruga Field.

The first step in this process was the sale of the Morochito Block to Deep Core Inc., which closed at the end of January. The company has now reached a further agreement with Deep Core to sell its 25% working interest in the La Maye block in Colombia.

Deep Core Inc. will acquire the sole issued share of Petro Vista Energy Colombia (Barbados) Corp. from the company's Barbados holding company, Petro Vista Energy Colombia (Barbados) Corp. Consideration payable by Deep Core consists of a nominal cash payment of US$75,000 and the assumption of all remaining La Maye, Block SSJN-5 and Morochito Block liabilities. Closing will occur on May 11.

As a result of the above transaction, Petro Vista has disposed of all rights and obligations associated with Block SSJN-5. While the technical merits of the block remain attractive, the increased well cost from $8 million previously to $31 million currently made it cost prohibitive for the company at its current stage. Efforts to farm down or sell the company's interest in the block during the past six months were unsuccessful.