Petro Vista Completes Strategic Acquisition
July 2, 2008Vancouver, B.C. July 2, 2008 - Petro Vista Energy Corp. (TSX-V: PTV) (the "Company") is pleased to announce that further to the news release dated May 20th, 2008, it has successfully completed the acquisition (the "Acquisition") of 90% of the quota capital of Petropuli Ltda. ("Petropuli"). Through the Acquisition the Company has acquired a 47.42% working interest in an exploration and production agreement which grants oil and gas exploration and production over the 27,137 acre Morichito Block located in the East Plains, Llanos Basin, Colombia.
As consideration for the Acquisition the company made the following payments:
- US$2,500,000 in cash, representing the final cash payment for the acquisition of the Quotas ($510,000 of which was paid directly to Petropuli Ltda. to pay down all of its existing liabilities);
- 1,777,549 common shares in the capital of the Company, representing that number of common shares equivalent to US$2,000,000 based on a closing price of the Company's common shares on the TSX Venture Exchange on June 30, 2008 of C$1.0186 to US$1.00; and,
- issue an aggregate 4% Net Production Royalty over its proportionate production from the Morichito Block.
The Morichito Block
The Morichito Block which lies in the East Plains of the Llanos Basin encompasses 27,137 hectares. Prior to the acquisition, Petropuli had completed extensive 3D seismic work and an exploration well on the Morichito Block. Petropuli drilled the Morichito #2 well in late 2006, recovered oil, but was unable to complete the well at the time due to extenuating circumstances. Well logs from this well were analyzed both internally and by third-party petrophysical experts and showed potential high-quality reservoir sands found in field analog wells in the area producing, for instance, 1,350 bopd of 37 degree API oil (independent source: La Punta Well, Mirador Formation, Llanos Basin - Baraka Petroleum Limited, ASX Quarterly Report January 30, 2008).
Extensive work has also been completed on several additional exploration prospects in the block. The most promising is the Morichito #1N prospect which is along a productive NE SW 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 Colombia are enhanced by the favourable royalty regime and attractive fiscal terms set out by the Colombian Government."
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 Brazil and Colombia."
Petro Vista will provide a comprehensible operational update in the following week.
About Petro Vista Energy
Headquartered in San Clemente, California, Petro Vista Energy Corp., is an independent exploration company engaged in the acquisition, exploration and development of oil and natural gas properties located in South America. The Company has exploration, development and production rights to over 230,000 acres gross (81,000 net) leasehold acres in Colombia and Brazil. 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 and assets.
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