VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 29, 2012) - Petro Vista Energy Corp. (TSX VENTURE:PTV) ("Petro Vista" or the "Company"), an independent oil and gas exploration and production company is pleased to provide the following update:
The workover program to install a downhole Electric Submersible Pump ("ESP") on the 7- TTG well in the Tartaruga Field in Brazil by the Operator has been successfully completed. The well was placed on production and produced a total of 486 barrels of oil in the first 24 hours of operation. The well is now being placed on production to determine the optimum level of long-term production rate and the Company will provide an update on production rates as these are determined. There can be no assurances that the flow rate will stabilize at current rates or higher rates over time.
This operation has seen significant delays due to operational issues including the failure of a downhole packer to release, the parting of tubing and drill string and electrical issues with the pump once it was run in the hole. It is planned to run a similar pump into the other existing production well in the Tartaruga Field in the near future. The forward plan also included the drilling of additional development wells in the Penedo Formation as well as a deeper target in the Serreria Formation identified on 3D seismic.
Petro Vista Chairman Keith Hill commented, "This has been a long struggle to complete this workover and get production back on line. With the current production and cash flow we hope to be able to continue the development of this field and will also examine business development and growth opportunities in the region."
The Company has earned the right to request a 37.5% working interest in the Tartaruga 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 ("ANP"). The Company is awaiting receipt of these approvals.
The Company announces it has negotiated an additional loan agreement with Mr. Keith Hill (the "Lender"), the Chairman and a director of the Company. The unsecured loan in the principal amount of $250,000 (the "Loan") matures and will be repayable on December 31, 2012 and accrues simple interest at a rate of 8% per annum.
The Lender is a related party and the loan transaction is a related party transaction. However, the directors of the Company, all of whom are independent in the respect of the Loan, have determined that the terms and conditions of the Loan are fair and reasonable and in the best interests of the Company, and have unanimously approved the Loan. In addition, the directors of the Company have determined that the Loan is exempted from the formal valuation and minority shareholder approval requirements.
The Company will use the proceeds of the Loan to fund a portion of the costs of the work over of the Tartaruga wells.
About Petro Vista Energy
Petro Vista Energy Corp. is an oil and gas exploration company with near-term production opportunities in South America. The Company has the rights to acquire an interest in an exploration, development and production property in Brazil.
ON BEHALF OF PETRO VISTA ENERGY CORP.
Keith Hill, Chairman of the Board of Directors
This press release includes "forward-looking statements" including expectations for future operations that are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company. Statements regarding the Company's plans and expectations for the development of the Tartaruga Block, future growth of the Company, development success, future production, reserve additions and capital expenditures are subject to all of the risks and uncertainties normally incident to the exploration for and development and production of oil and gas. These risks include, but are not limited to, inflation or lack of availability of goods and services, environmental risks, drilling, completion and production risks, equipment failure, availability of labor, unexpected geological or other effects, regulatory changes and availability of capital. Additionally there are no guarantees that the sale of Petro Vista Energy Colombia (Barbados) Corp. will complete or is completed on the terms outlined above. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. Such forward-looking information represents management's best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. The Company does not assume the obligation to update any forward-looking statement, except as required by applicable law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.