Source: Petro Vista Energy Corp.
Petro Vista Energy Corp. (TSX VENTURE: PTV) ("Petro Vista" or the "Company"), an independent oil and gas exploration and production company, announces that the closing of the sale of its subsidiary Petropuli SAS by Petro Vista Energy Colombia (Barbados) Corp. ("PTV Barbados") has been rescheduled for January 16, 2012 (see news release dated December 8, 2011). Further to this transaction, PTV Barbados has entered into an Advance Payment Agreement with the Purchaser of Petropuli, Deep Core Inc., to facilitate an advance of US$800,000 of the Petropuli purchase price to cover outstanding cash calls covering pre-drilling works on its SSJN-5 Block. The advance has been secured by Petropuli and PTV Barbados' rights in the La Maye and Morichito Blocks and will be repaid from the proceeds of the sale of Petropuli.
At the Tartaruga development block, Sergipe, Brazil, workover's on the 2 producing wells are in progress. Down hole pumps have arrived on site and will be installed in January 2012. The resolution of kerosene build up issues and the installation of these pumps are expected to significantly increase production at both wells. Plans are also underway for the drilling of both an exploration well and a development well at the block. The development well will target known pay horizons in the Penedo formation. The exploration well will test the Serraria formation below the Penedo and is a known producer nearby the Tartaruga block.
At the SSJN-5 block, Middle Magdalena Basin, Colombia, pre-drilling work is underway by the operator SK Innovations Corp. on an exploration well targeting the La Mocha prospect, a large structural feature in the Middle Magdelena Basin identified by the recent 3D seismic program conducted on the block. The primary target is the Porquero Formation that has been proven to be productive in the nearby La Creciente and Apamate discoveries by Pacific Rubiales.
The La Maye Block, Lower Magdalena Valley Basin, Colombia remains flooded following the rainy season in Colombia and the suspension of drilling activities will remain in effect until water levels subside and the block is accessible to drill an exploration well and test a previously drilled exploration hole that exhibited multiple oil shows (see news release dated November 20, 2009).
As part of the Company's ongoing asset rationalization process, the Company's Brazilian subsidiary has sold its 25% participating interest in Block 170, Reconcavo Basin, Brazil to Brazalta Brasil Norte Comercializacao de Petroleo Ltda. a subsidiary of Canacol Energy Ltd. in exchange for a 5% royalty on Brazalta's after tax revenue from the sale of petroleum products from the block. Additionally, the Company's Brazilian subsiaidy and its partners have agreed to return Block 169 to the ANP, following a pre-drilling evaluation of the exploration potential of this block that failed to identify any suitable drilling candidates.
The farm in and corresponding assignment to the Company's Brazilian subsidiary of a working interest in the Tartaruga Block, Brazil is subject to several conditions, including approval from the consortium members and the Agencia Nacional do Petroleo, Gas Natural e Biocombustiveis ("ANP") which is in progress.
Petro Vista sale of Morichito Block, Colombia and operational Update
Source: Petro Vista Energy Corp.