Latest news with #PetroVictory
Yahoo
18 hours ago
- Business
- Yahoo
Petro-Victory to Be Acquired by Brazil's Azevedo & Travassos Energia
This article was first published on Rigzone here Petro-Victory Energy Corp. said it has signed a binding memorandum of understanding (MoU) under which Brazilian energy firm Azevedo & Travassos Energia S.A. (ATE) will acquire all of its issued and outstanding common shares in an arm's length business combination. The transaction is intended to combine the businesses and assets of the two companies, resulting in Petro-Victory becoming a wholly owned subsidiary of ATE, with the current shareholders of Petro-Victory becoming shareholders of ATE. The combination is expected to 'increase shareholder value through the development of ATE's growth strategy with the supplementation of the company's diversified portfolio of production and exploration assets,' Petro-Victory said in a news release. Under the transaction, ATE will complete a private placement of around 205,5 million units at an issue price of $0.13 (BRL 0.73) per unit for gross proceeds of around $27.7 million (BRL 150 million). ATE will then purchase 100% of the issued and outstanding Petro-Victory shares and will issue 266 million shares at $0.13 (BRL 0.73) per share, provided proportionately to the shareholders of Petro-Victory, according to the release. Further, ATE will assume all outstanding debt of the company, with the estimated enterprise value of the transaction being approximately $39.5 million, including net debt and before considering any valuation for contingent payments. As part of the transaction, Petro-Victory shareholders of record at closing will be entitled to a gross overriding royalty (GORR) of 10 percent on the gross revenue from all new production arising from fields that already exist in the concessions owned by the company prior to the MoU or that will be created after the date of the MoU in the concessions owned by the company. The royalty exempts the production of the reservoirs of the São João Field that are the subject of a partnership between Petro-Victory and Eneva S.A. The GORR will apply for 15 years from the start of its commercial production or, for existing fields that are already in production, from the closing date, Petro-Victory said. Take control of your THOUSANDS of Oil & Gas jobs on Search Now >> The transaction is subject to a number of conditions precedent, including the completion of the private placement on or before July 12, subject to a 30-day extension at the sole discretion of ATE. The two parties will conduct customary due diligence and expect to negotiate and execute a definitive agreement on or before 120 days from the date of the completion of the private placement, according to the release. If the transaction is completed, Petro-Victory said it plans to delist from the TSX Venture Exchange as the acquisition will cause the company to no longer meet the exchange's listing requirements. Andorinha Field Drilling Successful Meanwhile, Petro-Victory said that it successfully concluded the drilling operations for the AND-5 well in the Andorinha Field, located in Brazil's Potiguar Basin, in partnership with ATE. Drilling reached a total depth of 3822 feet (1,165 meters) through sedimentary and basement rock layers. The operation utilized the Drake-2 onshore hydraulic rig, with wireline logging by Halliburton, Petro-Victory said in a separate statement. Based on conventional petrophysical evaluation, applying a salinity cut-off of 3,500 ppm, 42.7 feet (13 meters) of net pay were identified, distributed across four oil-bearing intervals. The technical team is continuing detailed analysis of the acquired logs and associated data, the company said. Petro-Victory said it plans to mobilize an onshore completion rig, aiming to acquire special saturation logs to more accurately characterize the productive intervals. Subsequently, well testing and completion operations will be carried out to prepare the well for production, followed by tie-in to the Andorinha Collection Station, the company said. To contact the author, email More From The Leading Energy Platform: Masdar Joins Iberdrola's East Anglia III Wind Project offshore UK ADNOC Bags 3-Year LNG Order from SEFE NATO Innovation Fund, Norway Invest in Robotic Offshore Assets Maintenance XCF Targets $1B Global SAF Production Portfolio >> Find the latest oil and gas jobs on << Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
3 days ago
- Business
- Globe and Mail
Petro-Victory Energy provides update on the conclusion of drilling the AND-5 well in the 100% owned Andorinha field, onshore, Brasil
DALLAS, July 9, 2025 /CNW/ - Petro-Victory Energy Corp. (TSXV: VRY) ("Petro-Victory" or the "Company") is pleased to announce that the drilling operations for the AND-5 well, in partnership with Azevedo & Travassos Energia ("ATE"), located in the Andorinha Field, Potiguar Basin, Rio Grande do Norte, were successfully concluded.
Yahoo
5 days ago
- Business
- Yahoo
Petro-Victory and ATE to merge for growth and asset diversification
Petro-Victory Energy has signed a binding memorandum of understanding with a publicly traded Brazilian energy company, Azevedo & Travassos Energia (ATE). It will be acquired by ATE, forming a consolidated entity. The merger is aimed at increasing shareholder value through strategic growth and asset diversification. ATE will undertake a capital increase through a private placement of 205.48 million units at 0.73 reais ($0.134) per unit, amounting to 150m reais ($27m). The capital increase is a precursor to ATE's acquisition of Petro-Victory, which will see the latter's shareholders become part of ATE. Certain Petro-Victory shareholders will then convert their claims into new common shares. ATE will acquire 100% of Petro-Victory's issued and outstanding shares, issuing 266 million ATE shares to Petro-Victory's shareholders at 0.73 reais per share. Shareholders will receive a 10% gross overriding royalty on new production from existing and future fields, excluding certain reservoirs partnered with Eneva. ATE will also assume Petro-Victory's outstanding debt, with the transaction's enterprise value estimated at $39.5m, inclusive of net debt and before any valuation for contingent payments. The share consideration offers a premium to Petro-Victory's shareholders based on the closing price as of 2 July 2025. The transaction is subject to customary conditions, including the completion of the capital increase by 12 July 2025 with a possible thirty-day extension, and the negotiation of a definitive agreement within 120 days post-capital increase. The agreement will necessitate corporate and governmental approvals, third-party consents and comprehensive audits by both parties. Both companies will conduct due diligence and expect to negotiate and sign a definitive agreement within 120 days of the capital increase. The transaction, classified as a reviewable disposition by TSXV standards, requires approval from Petro-Victory's shareholders and the TSXV. If completed, Petro-Victory will apply to delist from the TSXV as it will no longer meet the listing requirements post-acquisition. In April 2025, Petro-Victory Energy completed the acquisition of Capixaba Energia in partnership with BlueOak Investments, strengthening its position in Brazil's onshore energy sector. "Petro-Victory and ATE to merge for growth and asset diversification" was originally created and published by Offshore Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
