Petro Vista Energy Corp.
TSX VENTURE : PTV

Petro Vista Energy Corp.

January 24, 2012 19:43 ET

Petro Vista Provides Update on the Sale of Its Interest in Morichito Block, Colombia

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 24, 2012) - Petro Vista Energy Corp. (TSX VENTURE:PTV) ("Petro Vista" or the "Company") provides the following update on the proposed sale (the "Transaction"), by Petro Vista Energy Colombia (Barbados) Corp. ("PTV Barbados"), its wholly-owned subsidiary, of all of the issued capital of Petropuli Ltda. ("Petropuli"), previously announced on December 8 and December 19, 2011. Petropuli owns a 50% participating interest in the Morichito Block located in the Llanos Basin, Colombia. On December 6, 2011 PTV Barbados entered into an agreement (the "Share Purchase Agreement") with Deep Core Inc. ("Deep Core"), a private Cayman Islands oil and gas company with a focus in Central and South America, for the sale of the Petropuli capital to Deep Core. The Share Purchase Agreement was subsequently amended by amending agreements made December 16, 2011 (the "First Amendment") and January 20, 2012 (the "Second Amendment").

Under the terms of the Share Purchase Agreement, as amended, Deep Core has agreed to acquire the Petropuli capital for an aggregate of US$1.75 million. Of this amount, US$800,000 has been advanced by Deep Core to fund outstanding cash calls owing by PTV Barbados in respect of Block SSJN-5, located in the Middle Magdelena Basin and will be repaid to Deep Core upon closing. An additional US$198,960.33 will be held by Deep Core to fund certain liabilities and transaction related costs. The balance of US$751,039.67 will be placed into escrow. US$200,000 of the funds held in escrow will be released in three months, and the balance will be released in six months, subject only to payments from the escrow proceeds that may be required to be made in respect of any undisclosed past obligations of Petropuli, or liabilities arising from the non-delivery of certain post-closing deliverables.

The sale does not include Petropuli's 25% participating interest in Block SSJN-5, which will be transferred to a Petro Vista affiliate. Upon completion of the Transaction, PTV Barbados will be released from its obligations under the Advance Payment Agreement with Deep Core, previously announced on December 19, 2011, and Deep Core's security over Block SSJN-5 and PTV Barbados' rights in the La Maye Block will be terminated.

Closing of the Transaction has been extended by the parties and will only occur if and when the conditions precedent contained in the Second Amendment are satisfied by PTV Barbados or waived by Deep Core. There is no certainty if or when the conditions precedent will be satisfied or waived and the Transaction will complete. In the event the Transaction does not complete, the Company will need to reevaluate the future prospects for Petropuli.

About Petro Vista Energy

Petro Vista Energy Corp. is an oil and gas exploration company with near-term production opportunities in South America. The Company has exploration, development and production rights in Brazil and Colombia. The Company's goal is to build an upstream oil and gas company with exploration and production focused in the highest resource potential and commercially attractive countries in South America. 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.

Keith Hill, Chairman of the Board of Directors

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.

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