(Energy Analytics Institute, 10.Sep.2024) — Petro-Victory Energy Corp. has entered into a Memorandum of Understanding (MOU) with Eneva for the development of Petro-Victory’s non-associated gas resources located in the São João field, at the Barreirinhas basin, in the state of Maranhão.
All of the activities to be carried out in the São João Field, under the MOU, and the establishment of the JV will be subject to the approval of the National Petroleum Agency, when applicable, Petro-Victory said 10 Sep. 2024 in an official statement.
Highlights
- The São João Field non-associated gas reservoirs were discovered and tested by a previous operator and such resources are described in the GLJ reserve and resource report dated as of 31 Dec. 2023 with 50.1 billion cubic feet (1.4 billion cubic meters) of non-associated gas.
- The São João Field is 100% owned and operated by Petro-Victory.
- On 5 Sep. 2024, Petro-Victory signed an MOU with Eneva to develop the non-associated gas resources in the São João Field.
- Eneva is one of the largest Brazilian integrated energy operators and onshore LNG producer, with operations 250km from the São João Field.
- Eneva will perform and pay all costs related to the drilling, logging, completion and testing of one non-associated gas well, targeting the Bom Gosto/Arpoador formations, at an approximate depth of 3km (“Well Commitment”).
- Upon completion of the Well Commitment, Eneva will have an option to perform and pay all costs related to a 3D seismic data acquisition, processing, and interpretation program covering the entire São João Field (“Seismic Commitment”).
- Upon completion of the Seismic Commitment, Eneva will have the option to establish a joint venture company (JV) with Petro-Victory to develop the non-associated gas and agree on a unified gas monetization solution. Eneva will retain 72% participation interest in the JV. Petro-Victory will retain 28% interest in the JV. The JV structure will ensure that Petro-Victory retains 100% of revenues from the oil production.
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By Energy Analytics Institute staff. © Energy Analytics Institute (EAI). All Rights Reserved.
