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Petro Vista Announces Cash Acceleration and Management Program
VANCOUVER, BRITISH COLUMBIA - November 12, 2008 - (TSX-V:PTV) Petro Vista Energy Corp. ("Petro Vista" or the "Company") is pleased to announce that it has implemented a "cash acceleration and cash management program" to meet its strategy of building shareholder value by balancing production with exploration upside.
Amidst recent challenges facing energy resource companies, this program focuses on maturing Petro Vista�s base of production opportunities and subsequent cash flow from its key assets, namely the Tartaruga Block (41.2 % working interest) and Morichito Block (100% working interest), in order to fund its capital program continuing forward in 2009. The Company has also recently completed steps to efficiently conserve capital through overall cost reduction and re-allocation of existing capital to those high grade exploration opportunities and assets (current and new) offering the most upside potential.
Exploration and Production Update
Brazil
The Tartaruga Block is located in the prolific Sergipe-Alagoas Basin, in north-eastern Brazil, and has current average production of approximately 250 boe/d from one zone in one well with known additional multiple pay zones. Initial cash flow from the existing well at Tartaruga provides Petro Vista with funds to cover general overhead and administrative costs.
The Company will immediately undertake a work-over of the existing well to increase production by an estimated 15 to 20%. At the end of December 2008, Petro Vista will deploy the Prest rig, secured from Petrobras, to drill the Tartaruga development well (sidetrack), which is expected to be completed by Q1 2009. The Company�s internal estimates indicate that the sidetrack well (drilled into proven reservoirs in nearby analog fields and evaluated through log analysis in adjacent wells as pay sands), should produce net to the Company 390 boe/d. All production on the Tartaruga Block is subject to a fixed price contract until March 2009 at US$133/boe. Production from the Tartargua development well is available to sell as early as February since no additional facilities are required. With this initial work, estimated production is expected to be approximately 529 boe/d by end of Q1 2009. Additional recompletions and development wells are envisioned in the remainder of 2009 to continue to build up production. A Plan of Development for full field development has already been approved by the ANP, Brazil�s regulatory body.
Colombia - Morichito Block
The Morichito Block is located in the Llanos Basin, Colombia and comprises 57,252 gross acres. The Company holds a 100% working interest and plans to drill the Morichito M2 discovery in December 2008. Following the M2 completion, the Nabors 189 rig will be mobilized to drill two exploration wells on the Block beginning Q1 2009. The Morichito M2 production is a fast-track operation with initial pilot production expected in February 2009. The Company anticipates net production from the M2 completion well and the first exploration well (M1N) of 2,100 boe/d (approximately 600 boe/d from the M2 completion and 1,500 boe/d from the M1N exploration well).
Furthermore, the Company has secured a one-year extension with the Agencia Nacional de Hidrocarburos ("ANH"), Colombia�s regulatory agency, on its contract in Morichito in order to provide flexibility on its drilling commitments. The extension will enable Petro Vista to defer exploration well obligations into Q3 to Q4 of 2009 depending on capital and operational requirements.
The Morichito Block 3D seismic survey has been recently reprocessed and up to five drilling prospects have been identified.
Colombia - La Maye Block
Petro Vista holds a 25% working interest in the La Maye Block situated in the Lower Magdalena Basin. Under a turnkey contract with the ANH, the Company has a total of up to four additional exploration wells planned in 2009. Environmental and drilling permits are currently being prepared for completion in the four locations. Approvals are expected to be forthcoming and once obtained, a secured rig will be mobilized for drilling in Q2 2009. The timing of this project has been delayed for two months subject to the ongoing regulatory submittal and approval process. The approvals are expected to occur within the next 60 days.
Asset Rationalization Program
As part of our ongoing asset rationalization program, the Company has terminated its Round 7, two-well drilling program in the Sergipe-Alagoas Basin, onshore Brazil. Although interesting from an exploration standpoint, Blocks 413 and 428 exhibit less value than the Tartaruga, Morichito and La Maye projects. The budgeted capital from this terminated program, approximately US$1,600,000, will be utilized to advance production opportunities.
The Company continues to review new ventures and other high potential assets in these same focus areas including high quality shallow water assets in Brazil�s upcoming Bid round where the Company�s Management team has a successful track record and state-of-the-art technologies
About Petro Vista Energy
Headquartered in San Clemente, California, USA, 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 721,270 gross acres (366,524 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 Taylor"
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 Company. 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. The Company does not assume the obligation to update any forward-looking statement, except as required by applicable law
For further information please contact:
Petro Vista Energy Corp.
Investor Relations
Toll Free: +1 (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
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