Petro Vista Closes Acquisition of 47.42% Interests in Prospective Oil and Gas Concession in Llanos Basin, Colombia
May 20, 2008- Petro Vista to acquire 47.42% Working Interest and Operational Control of the Morichito Block - Llanos Basin, Colombia.
- Previous well logs indicate the Morichito Block has oil and contains potential high-quality reservoir sands.
- Addition of Probable Reserve and Prospective Resource.
- Near term production opportunities include completion of Carbonera C-7 sands and drilling an exploration well up-dip of this discovery into the identified prospect location.
- Operations underway including road work, permitting, selection of rig.
- Other additional "look alike" prospects exist in block and will be drilled depending on success.
VANCOUVER, BRITISH COLUMBIA - May 20th, 2008 - (TSX-V:PTV) Petro Vista Energy Corp. ("Petro Vista" or the "Company"), an independent oil and gas exploration company, is pleased to announce it has entered into a final agreement to acquire a 47.42% working interest in and operational control of the Morichito Block located in the Llanos Basin, Colombia by acquiring 90% of the issued capital of Petropuli Ltda. ("Petropuli"), a private Colombian company and the operator of the Morichito Block. This acquisition will complete on July 1, 2008.
Pursuant to the terms of a Quota Purchase Agreement, the Company has agreed to purchase 90% of the issued capital of Petropuli for consideration of the payment of US$1,990,000 in cash, the settlement of US$510,000 in debt, the issuance of US$2,000,000 of common shares of the Company at a price equivalent to the closing price of the Company's common shares on the TSX Venture Exchange on the day prior to closing and the grant of a 4% Net Production Royalty on Petropuli's 47.42% production from the Morichito Block.
The Morichito Block
The Morichito Block which lies in the East Plains of the
Extensive work has also been completed on several additional exploration prospects in the block. The most promising is the Morichito #3 prospect which is along a productive NW SE trend in the area where field size reserves range from 6-10MMBO. An exploration well in the area will be drilled in Q4 2008.
Read B. Taylor,
President and CEO of Petro Vista, commented, "We are pleased to add this
interest in the Morchito Block to our portfolio as it
is in line with our strategy of developing low-risk, proven exploration plays
and drilling opportunities with significant upside potential. The economics of
dealing in
He added, "With the
acquisition, Petro Vista is continuing to meet our responsibility to our
shareholders to aggressively build a portfolio of prospective assets. The Morichito Block acquisition is one of a number of
opportunities the Company expects to announce in the next year, as it aims to
participate in the drilling of up to 10 wells in
Steven Benedetti, VP
- South America, of Petro Vista said, "The Morichito Block is the first of several significant projects we expect to complete in
Upon closing of the acquisition, Petro Vista received a third-party evaluation to highlight the potential of the Morchito Block.
Third Party Evaluation Report
Petrotech Engineering Ltd. has prepared an engineering and economic evaluation of the Morichito Block in accordance with NI 51-101 with an effective date of March 31, 2008 (summary report available on www.sedar.com).
The report reflects Petro Vista's 47.42% participating interest in the Morichito Block. The following excerpted Forecast Case Before and After Tax reserve and resource estimates are based on an oil price of $87.63/bbl for the Morichito 22o API crude oil from the Carbonera formation as of March 31, 2008:
| Probable Oil Reserves(1) | NPV of Future Net Revenue(1) Before Tax Discounted (in M$) @ |
||||
| 47.42% WI Reserves |
100% (Mbbl) | Gross (Mbbl) |
Net (Mbbl) |
0% | 10% |
| Probable | 160 | 76 | 67 | 3,062 | 2,213 |
| Probable Oil Reserves | NPV of Future Net Revenue After Tax Discounted (in M$) @ |
||||
| Reserves | 100% (Mbbl) | Gross (Mbbl) |
Net (Mbbl) |
0% | 10% |
| Probable | 160 | 76 | 67 | 1,776 | 1,231 |
| Prospective Oil Resources | NPV of Future Net Revenue Before Tax Discounted (in M$) @ |
||||
| Estimate | 100% (Mbbl) | Gross (Mbbl) |
Net (Mbbl) |
0% | 10% |
| Low | 1,045 | 495 | 436 | 22,140 | 11,453 |
| Best | 3,945 | 1,646 | 1,646 | 99,567 | 55,441 |
| High | 8,682 | 3,623 | 3,623 | 229,279 | 122,171 |
| Prospective Oil Resources | NPV of Future Net Revenue After Tax Discounted (in M$) @ |
||||
| Estimate | 100% (Mbbl) | Gross (Mbbl) |
Net (Mbbl) |
0% | 10% |
| Low | 1,045 | 495 | 436 | 13,380 | 6,487 |
| Best | 3,945 | 1,646 | 1,646 | 63,492 | 34,614 |
| High | 8,682 | 3,623 | 3,623 | 147,906 | 77,567 |
(1) Estimated values disclosed do not represent fair market value.
The gross reserve is the Company's share of production before royalties and the net reserve is the Company's share of production after deduction of royalties. Prospective resources are those quantities of oil and gas estimated on a given date to be potentially recoverable from undiscovered accumulations. If discovered, they would be technically and economically viable to recover; and there is no certainty that the prospective resource will be discovered. If discovered, there is no certainty that any discovery will be technically or economically viable to produce.
About Petro Vista Energy
Headquartered in Vancouver, Petro Vista Energy Corp. is an independent exploration company engaged in the acquisition, exploration and development of oil and gas properties located in South America. The Company has exploration, development and production rights to approximately 162,108 gross (64,664 net) leasehold acres in Colombia and Brazil. In addition to the Morichito Block, Petro Vista is evaluating four other opportunities in the Llanos and Magdalena Basins with significant upside potential. The Company's website at www.pvecorp.com provides additional information about the Company's plans, including photographs and other information with respect to its operations.
ON BEHALF OF PETRO VISTA ENERGY CORP.
"Read
Read Taylor, President and CEO
THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
This press release includes "forward-looking statements" including forecasts, estimates, expectations and objectives for future operations that subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Corporation. Statements regarding 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 risks and regulatory changes. 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. Corporation does not assume the obligation to update any forward-looking statement.
For further details, please contact:
Petro
Vista Energy Corp.
Investor
Relations
Toll
Free: (877) 427-3876
Email: investor@pvecorp.com
Website: www.pvecorp.com
Mailing Address:
Petro Vista Energy Corp. (USA)
910 South El Camino Real Suite D
San Clemente, California 92672, USA
+1 (949) 373-3655
Fax: +1 (949) 369-2810
E-mail: info@pvecorp.com
Web: www.pvecorp.com