VANCOUVER, BRITISH COLUMBIA — (Marketwire) — 05/07/12 — Petro Vista Energy Corp. (TSX VENTURE: PTV) (“Petro Vista” or the “Company”), an independent oil and gas exploration and production company, provides the following corporate update.
Brazil
In the Tartaruga field, Sergipe Basin, Brazil, the Operator UP Petroleo Brasil Ltda. currently has a workover rig on location to install Electrical Submersible Pumps (“ESP–s”) in the two existing production wells in the field. These pumps are expected to enhance production. These operations are expected to be completed by the end of May at which point an update will be issued.
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.
Colombia
As previously announced, the Company is looking to exit from its Colombian operations to focus primarily on the development and appraisal of the Tartaruga field in Brazil. The first step in this process was the sale of the Morochito Block to Deep Core Inc., which closed at the end of January 2012. The Company would now like to announce that it has reached a further agreement with Deep Core Inc. to sell its 25% working interest in the La Maye block in Colombia. Pursuant to a share sale and purchase agreement, Deep Core Inc. will acquire the sole issued share of Petro Vista Energy Colombia (Barbados) Corp. from the Company–s wholly-owned Barbados holding company, Petro Vista Energy Colombia (Barbados) Corp. Consideration payable by Deep Core consists of a nominal cash payment of US$75,000 and the assumption of all remaining La Maye, Block SSJN-5 and Morochito Block liabilities. Closing will occur on May 11, 2012.
As a result of the above transaction, the Company has disposed of all rights and obligations associated with Block SSJN-5. While the technical merits of the block remain attractive, the increased well cost from $8MM previously to $31 million currently made it cost prohibitive for the Company at its current stage. Efforts to farm down or sell the Company–s interest in the block during the past 6 months were unsuccessful.
Corporate Matters
The Company would like to announce that Steven Benedetti has resigned as Acting President and CEO of the Company to pursue other career opportunities. The Company would like to thank Mr. Benedetti for his contributions and wishes him success in his new endeavors. The Board is currently searching for a replacement for Mr. Benedetti and continues to pursue opportunities for broader corporate transactions.
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 exploration, development and production rights in Brazil and Colombia.
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 its 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.
Contacts:
Petro Vista Energy Corp.
Attention: Darren Devine
+1 (604) 638-8067