Page 15 - LatAmOil Week 28 2021

LatAmOil NEWS IN BRIEF LatAmOil

Previously announced new 3-D seismic of 100 this term for an additional 350 days, divided into portfolio. Gneiss delivers a world-class team of
square km over Canada Grande now expected periods of 70 days each. global investment banking and industry experts
to be acquired at end of rainy season at or around The rig, built in 2010, is a semi-submersible who have the expertise and skillset to support
March 2022. drilling platform with dynamic positioning, able our exciting expansion plans within our existing
Paraguay farm-out awaiting regulatory to operate at 2,400 metres of water depth and and targeted assets. Together, we look to grow
approvals, currently expected before the end drill wells up to 7,500 metres. Petro-Victory into the preeminent acquisition
of the current quarter, and in the meantime, PetroRio, July 13 2021 and development firm with a laser focus on
negotiations regarding long lead items and the onshore Brazil.”
drilling rig are in progress with various site visits Gneiss Energy, July 12 2021
having taken place. FINANCE
Peter Levine, Chairman, commented: “Given
the circumstances, the actions of President’s Gneiss Energy named as PERFORMANCE
engineering team in relation to the new oil treat-
ment plan has been commendable in the face of exclusive financial advisor Trinity Exploration
the difficulties encountered. The facilities once
in full operation, expected by the end of this to Petro-Victory announces Q2-2021
month, means that we own and control the deliv-
ery of our oil in Rio Negro with the concomitant Gneiss Energy, a global strategic and corpo- operational update
cost savings rate finance advisory firm operating within the
“Salta operational planning presses ahead energy and natural resources sectors, is delighted Trinity Exploration & Production, the inde-
to ensure the new wells will be drilled on time. to be named as exclusive corporate finance advi- pendent E&P company focused on Trinidad and
Further details on the wells and expectations sor to Petro-Victory Energy, a full-cycle energy Tobago, has provided an update on its operations
will be announced in due course. Paraguay also company focused on a portfolio of operated for the three-month period ended 30 June 2021.
progresses in line with expectations and prior onshore exploration, development and produc- Q2-2021 Summary: The Trinity operating
announcements tion opportunities in Brazil. The engagement model of a low cost break-even and a technical-
“These operations, the carrying on the core will see Gneiss Energy support Petro-Victory ly-led operating capability has resulted in contin-
production businesses in Argentina and Amer- with strategic corporate finance advice in rela- ued strong production levels and operating cash
ica together with the significant progress on tion to capital raising, corporate and asset trans- generation, both of which underpin the Group’s
Atome demonstrate the potential of our Group actions, and other strategic growth initiatives. strategic push to meaningfully scale the business.
whose current entire market capitalisation is less Jon Fitzpatrick, Gneiss Energy Managing Significantly, despite the COVID-related
than GBP50mn.” Director, commented: “The Gneiss team is very state of emergency in Trinidad, production lev-
President Energy, July 13 2021 excited about its strategic partnership with Pet- els remained resilient during Q2-2021 with pro-
ro-Victory. Our firm regards onshore Brazil oil duction volumes averaging 3,047 bpd (Q1-2021:
and gas as one of the most exciting geographic 3,107), yielding a H1-2021 average of 3,032 bpd.
SERVICES energy growth plays in the world. Brazil pro- The Group’s unaudited cash balances remained
vides unparalleled dual catalysts for growth with robust at $19.0mn as at June 30, 2021 ($20.2mn
PetroRio contracts rig for Petrobras divestures and ANP Permanent Auc- audited as at December 31, 2020), as a result of
tion rounds, that present significant production, strong operating cash generation ($5.1mn).
Frade and Wahoo drilling development and exploration opportunities for The Company remains on track to meet its
well-structured and capitalized companies. The operating break-even target of below $30/bbl
PetroRio has signed with Ocyan Drilling a con- Petro-Victory team has strategically positioned for 2021. Average pre-hedge income operating
tract to hire the NORBE VI drilling rig for the the Company at the forefront of this onshore break-even (revenues less royalties, opex and
Frade Field Revitalization Campaign and the opportunity and we look forward to supporting G&A) for H1 2021 was $27.8/bbl (unaudited)
Wahoo Field development. Richard and the entire Petro-Victory team to (H1 2020: $24.7/bbl (unaudited)). The increase
The contract will begin in March 2022 and deliver their plan in Brazil.” in H1 2021 in part reflects additional costs asso-
will enable the drilling of three wells in the Frade Richard Gonzalez, Petro-Victory CEO com- ciated with the Covid pandemic.
Field (one producer and two injectors) followed mented: “I’m delighted to have secured Gneiss Outlook: The Company remains well placed
by the drilling of 4 producer wells in the Wahoo Energy as our exclusive corporate finance advi- to pursue multiple growth opportunities organ-
Field. The contract’s initial period will be of 500 sor as we enter the next stage of accelerating the ically and inorganically across the energy spec-
days and PetroRio will have an option to extend growth of Petro-Victory’s onshore Brazilian trum due to its unique position in Trinidad, its
well-established asset base and operating phi-
losophy and the high quality partnerships that it
has developed. Partnerships will continue to play
an important part in enhancing our capabilities,
reducing risk and increasing our ability to win
mandates.
Internally the exciting opportunities across
both an expanded Onshore acreage and the
Galeota Licence area (particularly the Echo
development) continue to be advanced, with
further developments on both fronts expected
to be announced during H2-2021.

Week 28 15•July•2021 www. NEWSBASE .com P15