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Petro Vista Acquires 100% Working Interest in the Morichito Block, Colombia
VANCOUVER, BRITISH COLUMBIA - October 16, 2008 - (TSX-V:PTV) Petro Vista Energy Corp. ("Petro Vista" or the "Company") is pleased to announce that it has successfully completed the acquisition of the remaining 47.8% working interest in its Morichito Block from Eagle Transport Ltda ("Eagle"). The Company now owns 100% of the oil and gas exploration and production rights over the Morichito Block through its Colombian subsidiary, Petropuli Ltda. ("Petropuli").
The Morichito Block
The Morichito Block is located in the Llanos Basin, Colombia and comprises 57,252 gross acres. The Company estimates a net potential production of 2,100 bopd (approximately 600 bopd from the completion of an existing discovery and approximately 1,500 bopd from an exploration well).
Extensive geotechnical (3D seismic and well log evaluations) and engineering analysis has been completed on five exploration prospects in the Morichito Block. Based on the earlier independent third party review by Petrotech Engineering Limited in their NI 51-101 Report dated, March 31, 2008, the Morichito Block is estimated to contain Proven and Probable reserves of 141,350 BL plus contingent resources of 3.47 MMBL for a total of 3.6 MMBL with an estimated net present value of over C$120MM before taxes using a discount rate of 10%.
The Company plans to do a completion of the Morichito M2 discovery in November 2008. The Morichito #1N prospect exploration well is being planned for Q1 2009. The Company has already initiated building access roads obtaining permits, and reviewed several options for drilling rigs and services. As part of its overall cash management plan and cost reduction strategy, in these difficult markets, the Company has recently obtained approval from the ANH (Colombia Hydrocarbon Agency) on an extension to the contract for the drilling of its exploration wells for another 12 months.
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 five 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) and the Carbonera C-7 sands with an initial production rate at the Guarimena - 1 well drilled in 1988 by Ecopetrol which produced 1,693 bopd of 32.6 degree API oil (independent source: ANH databank).
Acquisition Terms
Pursuant to a Termination and Release Agreement dated October 10, 2008, Petro Vista�s Colombian subsidiary, Petropuli Ltda., immediately acquired a 47.8% Working Interest in the Morichito Block in consideration of the following payments:
(a) US$500,000 in cash on November 26, 2008;
(b) US$2,500,000 from 40% net production on the Morichito Block;
(c) the issuance of a 1% Net Production Royalty over its production from the Morichito Block; and,
(d) a waiver of Eagle�s obligations to repay its working interest commitments expended by Petropuli Ltda.
Read B. Taylor, President and CEO of Petro Vista, commented "The acquisition of the remaining interest in this block at a low upfront cost consolidates our interest in one of our highest potential assets. This block is located in a highly competitive hydrocarbon-rich trend with several recent significant discoveries. We believe this block has a highly prospective portfolio of five exploration prospects with net potential production of 2,100 bopd. The cash flow from this completion and the existing Tartaruga Block production in Brazil will allow us to progress our high quality, opportunity rich development and exploration drilling portfolios."
Note that estimated values disclosed do not represent fair market value. The estimates of reserves and future net revenue for individual properties may not reflect the same confidence level as estimates of reserves and future net revenue for all properties, due to the effects of aggregation. There is no certainty that it will be commercially viable to produce any portion of the resources.
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 169,000 acres gross (59,000 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 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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