VRY's Capixaba Venture Posts Impressive Production Gains

Petro-Victory Energy (TSXV: VRY) has made significant strides in its operational performance, particularly at its Capixaba Energia venture. The company's workover-led strategy aimed to squeeze more oil from mature onshore fields in Brazil, and the results are promising.

In the first year of operation, Capixaba's oil production more than doubled, increasing 128% from 256 barrels per day to 583 barrels per day. Gas production also saw a substantial rise of 471%. These gains were achieved without expensive new drilling, but rather through workovers and recompletions on existing wells.

The improvement in economics is equally impressive, with production costs falling 37% from US$25.8 per barrel to US$16.3 per barrel. The discount on oil sales narrowed by six percentage points to 11.3%, resulting in roughly R$17 million of free cash flow from operations.

The success at Capixaba is largely due to the workover and recompletion campaign, which validated three wells (LP-38, LP-73, and LP-77D) and confirmed the Upper Urucutuca interval as a new commercial horizon without additional drilling. This achievement marks an important milestone for Petro-Victory's investment case.