VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 15, 2013) - Petro Vista Energy Corp. ("Petro Vista" or the "Company") (TSX VENTURE:PTV), an independent oil and gas exploration and production company provides the following corporate and operational update
The Company has entered into short-term loan agreements with certain lenders. These unsecured loans in the principal amount of $950,000 (the "Loans") mature and will be repayable on January 26, 2013 and accrue simple interest at a rate of 10% per annum.
One of the lenders is Keith Hill who is a related party and the loan transaction with Mr. Hill (the "Hill Loan") is a related party transaction. However, the directors of the Company, all of whom are independent in the respect of the Hill Loan, have determined that the terms and conditions of the Hill Loan are fair and reasonable and in the best interests of the Company, and have unanimously approved the Hill Loan. In addition, the directors of the Company have determined that the Hill Loan is exempted from the formal valuation and minority shareholder approval requirements.
The Company will use the proceeds of the Loans to fund a portion of the ongoing work over of the Tartaruga wells.
Loan Note Extensions
The Company has negotiated the extension of the maturity date of all currently outstanding unsecured loans and convertible promissory notes in the aggregate amount C$3,300,000 to January 26, 2013. No additional consideration was payable in respect of the extensions.
The Company announces that production on the Tartaruga field has been suspended due to the failure of the recently installed electric submersible pumping unit installed as part of the work over of development well 7-TTG-1DP-SES. A new pump has been procured by the operator UP Petroleo Brasil Ltda. and a rig is being moved onto location to replace this pump. This operation is expected to be completed by the middle of February 2013.
The Company has earned the right to request a 37.5% working interest in the Tartaruga field. The assignment of this working interest is subject to several conditions, including approval from the consortium members and the Agencia Nacional do Petroleo, Gas Natural e Biocombustiveis ("ANP"). The Company is awaiting receipt of these approvals.
About Petro Vista Energy
Petro Vista Energy Corp. is an oil and gas exploration and development company with near-term production opportunities in South America. The Company has the rights to acquire an interest in an exploration, development and production property in Brazil.
ON BEHALF OF PETRO VISTA ENERGY CORP.
Keith Hill, Chairman of the Board of Directors
This press release includes "forward-looking statements" including expectations for future operations that are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company. Statements regarding the Company's plans and expectations for the successful completion of the workoover of the wells and future development of the Tartaruga Block, future growth of the Company, development success, 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, completion and production risks, equipment failure, availability of labor, unexpected geological or other effects, regulatory changes and availability of capital. Additionally there are no guarantee that the workover of either of the Tartaruga wells will be successfully completed or that if successfully completed will result in an increase or sustainable increase in oil production or that the Company will receive the approval of the ANP to it being assigned its working interest in the Tartaruga Field. 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. The Company does not assume the obligation to update any forward-looking statement, except as required by applicable law.
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