Petro-Victory Energy Corp.
TSX VENTURE : VRY

Petro-Victory Energy Corp.

October 05, 2015 20:06 ET

Petro-Victory Announces Agreement to Convert Its Interest in Pirity Block to Royalty

CALGARY, ALBERTA--(Marketwired - Oct. 5, 2015) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAWS.

Petro-Victory Energy Corp. ("Petro-Victory" or the "Company") (TSX VENTURE:VRY) is pleased to provide the following update on its Pirity Concession ("Pirity") in Paraguay.

Petro-Victory has agreed to sell to President Energy, PLC ("President") its entire 36% interest in its Pirity Concession held through its Pirity Hidrocarburos S.R.L. subsidiary ("PH") on the principal terms set out below ("the Agreement").

Principal Terms and Conditions

1. Consideration payable to PH and Petro-Victory

  1. US$500,000 in cash payable in installments, the first being US$200,000 followed by three of US$100,000 each;
  2. All claims, debts and obligations between the parties previously accrued have been released, including the forgiveness of certain conditional debt in the amount of US$2.85 million agreed to by the parties in their prior Settlement and Forbearance Agreement;
  3. In the event of a farm-out taking place in relation to Pirity and back costs being paid, a sum limited to the first US$2.7million of back costs received by President to be paid to the Petro-Victory group; and
  4. A Net Profits Interest of 3% of net income generated from successful commercial production of hydrocarbons in Pirity to be paid to PH.

2. Condition of the Sale and Purchase - Subject to Petro-Victory obtaining TSX Venture Exchange approval

Richard Gonzalez, President of Petro Victory, and Peter Levine, Chairman of President commented:

"The Agreement is an elegant and mutually beneficial way forward for the Pirity Concession for all concerned.

The sale and purchase allows President the freedom, flexibility and scope to exclusively progress Pirity and permits Petro-Victory to devote its resources to pursue other opportunities in Latin America while retaining an interest in the event of successful production in Pirity freed from further financial responsibility."

Additional information on the Company is available on SEDAR at www.sedar.com

This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities, in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws and may not be offered or sold within the United States unless an exemption from such registration is available.

Cautionary Note

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.

Advisory Regarding Forward-Looking Statements

In the interest of providing Petro-Victory's shareholders and potential investors with information regarding Petro-Victory, including management's assessment of Petro-Victory's future plans and operations, certain statements in this press release are "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-looking information" within the meaning of applicable Canadian securities legislation (collectively, "forward looking statements"). In some cases, forward-looking statements can be identified by terminology such as "anticipate", "believe", "continue", "could", "estimate", "expect", "forecast", "intend", "may", "objective", "ongoing", "outlook", "potential", "project", "plan", "should", "target", "would", "will", "shall" or similar words suggesting future outcomes, events or performance. The forward-looking statements contained in this press release speak only as of the date thereof and are expressly qualified by this cautionary statement.

Specifically, this press release contains forward-looking statements relating to but not limited to: the proposed sale of the Pirity Concession and the consideration therefore, our business strategies, plans and objectives, and drilling and exploration expectations. These forward-looking statements are based on certain key assumptions regarding, among other things: our ability to eventually add production and reserves through our exploration and acquisition activities; the receipt, in a timely manner, of regulatory and other required approvals for our operating activities; the availability and cost of labor and other industry services; the continuance of existing and, in certain circumstances, proposed tax and royalty regimes; and current industry conditions, laws and regulations continuing in effect (or, where changes are proposed, such changes being adopted as anticipated). Readers are cautioned that such assumptions, although considered reasonable by Petro-Victory at the time of preparation, may prove to be incorrect.

Actual results achieved will vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. These and additional risk factors are discussed in our Final Prospectus dated July 11, 2014, as filed with Canadian securities regulatory authorities at www.sedar.com.

The above summary of assumptions and risks related to forward-looking statements in this press release has been provided in order to provide shareholders and potential investors with a more complete perspective on Petro-Victory's current and future operations and such information may not be appropriate for other purposes. There is no representation by Petro-Victory that actual results achieved will be the same in whole or in part as those referenced in the forward-looking statements and Petro-Victory does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities law.

Contact Information

  • Petro-Victory Energy Corp.
    Richard F. Gonzalez
    CEO
    972-239-3084

    Petro-Victory Energy Corp.
    Mark Bronson
    CFO and Corporate Secretary
    817-838-4744

    Brisco Capital Partners Corp.
    Scott Koyich
    403-619-2200