Page 14 - LatAmOil Week 13 2020

LatAmOil
NEWS IN BRIEF
LatAmOil
UPSTREAM
Brazil: Petro-Victory Energy
announces drilling of VIDA
well and operational update
Petro-Victory Energy has provided the market with a drilling and operational update across the Company’s portfolio of assets in Brazil.
The Company is pleased to announce that it commenced the drilling of the 1-VID-1-ES (Vida) exploration well located in Block ES-T- 487 Espírito Santo Basin, Brazil. The wholly owned, Petro-Victory Energy subsidiary, Pet- ro-Victory Energia has a 50% working interest in the block following the acquisition of five (5) exploration concessions located in Espirito Santo, previously announced October 26, 2018. Imetame Energia is 50% working interest part- ner and operator in the project.
The Vida well will be drilled to a total depth of 1,800 metres and will target prospective sand- stone reservoirs in the São Mateus Formation. Petro-Victory internal mapping and volumetrics estimate the mean recoverable resources of the Vida prospect to be 855,000 barrels. Over 2.5mn barrels of prospective resources are mapped within the proximity of Vida. Upon reaching total depth of 1,800 metres, the Vida well will be suspended, and the drilling rig will be demobi- lised in order to move in a workover rig to test the well.
Preliminary results of the Vida well are expected within the next 30 days. On reach- ing total depth, Petro-Victory will obtain wireline and pressure/fluid samples over the target intervals. The AFE of the Vida well is $1.86mn ($930,000 net to the Company) and will be funded from the Company’s previously
announced financing facilities. Upon success- ful completion, the Company projects ongoing OPEX to be in the $10-12 per BO range, gener- ating positive cash flow and profitable netbacks in the current price environment.
Following the recent market volatility related to the ongoing COVID-19 pandemic and increased global crude oil supply, Petro-Victory is encouraged by the strong oil sales seen in Bra- zil, particularly for the Company’s producing fields Carapitanga and Andorinha. Oil sales at Carapitanga and Andorinha are currently trad- ing at a $10+ premium to Brent pricing, with recent sales to an industrial buyer in March at $38 per barrel. With low base OPEX costs and 5-10% royalty rates, the fields are able to gener- ate positive cash netbacks in the current pricing environment.
Production in the first quarter has averaged approximately 24 bpd net to Petro-Victory from four mature wells, three in Andorinha and one in Carapitanga. The Company is applying for environmental permits for future development well locations and workovers with the intent of achieving 1,000 bpd of production by Q4-2021. All future CAPEX spending will be based on generating positive cash flow and netbacks at $25 Brent oil pricing.
The previously announced transaction to acquire a 50% of Imetame Energia Lagoa Parda is awaiting final Agencia Nacional do Petroleo Gas Natural e Biocombustiveis of Brazil (ANP) approval, which is expected in 2020.
Through its 50% net working interest operat- ing partner, Oeste de Canoas, the Company has contracted a workover rig for the Sao Joao field in order to conduct production testing at SJ-01, SJ-06, and SJ-11 with the intention of declaring commerciality in Q2 2020.
The Sao Joao oil field produced 87,500 BO between 1984 and 1988 from four wells. The
Company plans to re-enter 3 of these wells and complete them for commercial production. On completion of the production tests, an update will be given on production forecasts and expectations.
Richard F. Gonzalez, Chief Executive Officer of Petro-Victory, commented: “We have an exceptional portfolio of premium, low-produc- tion-cost assets that are well positioned to gen- erate positive cash flow in the current low-price environment. We also continue to actively pur- sue value-accretive acquisitions of high-quality production and development assets in Brazil capable of delivering positive cash flows and shareholder returns.”
Petro-Victory Energy, April 01 2020
SERVICES
BW Offshore: Update
on FPSO Cidade de Sāo
Mateus contracts
BW Offshore (BWO) informs that the Charter Agreement and the Services Agreement (Con- tracts) for the FPSO Cidade de Sāo Mateus, which was operating on the Camarupim field offshore Brazil from 2009 until 2015, reached their final terms on March 29, 2020.
The FPSO is currently in lay up in Singapore.
BW Offshore, March 30 2020
Magseis Fairfield wins
deepwater OBN contract
in Mexico
Magseis Fairfield has been awarded a deep water OBN project in the Mexican sector of the Gulf of Mexico. Work is scheduled to commence in the third quarter of 2020 and will take approximately 60 days. The survey will be carried out in water depths of 2,000-2,600 metres.
The award adds further to the backlog for Magseis Fairfield’s proven existing ZXPLR crew, led by the REM Saltire node handling vessel. The new award increases the crew’s backlog into the fourth quarter 2020, following the two deep water OBN programmes announced in Decem- ber 2019.
“This award demonstrates our leading position in the deep water OBN market and strengthens our 2020 backlog. The work is for a repeat customer who completed a survey in the US Gulf of Mexico earlier in 2020, and we very much look forward to working for them in Mex- ico later his year,” says Carel Hooijkaas, Magseis Fairfield’s CEO.
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Week 13 02•April•2020