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Petro Vista Secures a Three Well Carried Program
with Farm–Out of 35% Interest in Morchito Block, Columbia
VANCOUVER, BRITISH COLUMBIA � March 9, 2009 � (TSX�V: PTV) Petro Vista Energy Corp. ("Petro Vista" or the "Company"), an independent oil and gas exploration and production company, is pleased to announce that its wholly�owned Colombian subsidiary Petropuli Ltda. has signed a participation agreement (collectively, the "Agreement") with Golden Oil Corp. (the "Farmee" or "Golden"), a private Korean company with oil and gas exploration and production assets in Colombia, Argentina and Canada. Pursuant to the Agreement, Petro Vista will farm�out a 35% participating interest in the Morichito Block located in the Llanos Basin, Colombia. Petro Vista will remain operator with a 35% participating interest.
In announcing the agreement, Petro Vista President, Read B. Taylor commented,"The farm�out agreement with Golden Oil, in combination with the farm�out of a 35% net working interest to Omega Energy Colombia and Green Power Corporation (as previously announced January 19, 2009), allows Petro Vista to complete the Morichito #2 discovery well and drill its two high�value prospects Morichito #1N and Morichito #3 at no capital cost. The farm�out is complementary to our strategy of leveraging value from our assets as well as a risk reduction tool on exploration blocks. We look forward to working with our partners and achieving our production goals in the Morichito block."
Under the terms of the agreement, the Farmee will acquire an aggregate 35% participating interest by paying:
- US$500,000 cash deposit within three business days;
- US$2,000,000 cash on March 31, 2009;
- US$1,000,000 cash on May 11, 2009;
- US$900,000 cash on June 18, 2009; and,
- Option (90 days) to farm into a 15% participating interest in one of Golden�s Colombian blocks for no consideration.
Other than the initial US$500,000 deposit, these funds will be applied to Petro Vista and Golden�s aggregate 70% cost obligations for the Morichito #1N and #3 exploration wells on the Morichto Block. The Farmee is also obligated to pay its participating interest share of any costs on these wells and the currently drilling Morichito #2 completion well that are over and above the AFE amounts. Any excess monies will be used to cover Petro Vista and Golden�s future obligations until expended.
The estimated total value of the Farm�out to the Company is US$4,400,000 dollars.
The completion of the transaction is subject to all necessary approvals including approval to the assignment by the Agencia Nacional do Hidrocarburos and the acceptance of the transaction by the TSX Venture Exchange.
The Morichito Block
The Morichito Block is located in the Llanos Basin, Colombia, and comprises 57,252 gross acres. Extensive geotechnical (3D seismic reprocessing and well log evaluations) and engineering analysis has been completed on five exploration prospects in the Block. A discovery well at Morichito #2 was drilled on trend with several of these prospects in 2006.
On February 25, 2009, Petro Vista initiated operations at the Morichito #2 discovery well. The Company anticipates approximately 10 to 14 days of testing and completion. Two to three zones previously identified in log analysis and determined to be prospective will be evaluated during this testing period. The Morichito #1N prospect exploration well is planned with mobilization set to occur in mid�March. The second exploration well (Morichito #3) is set to follow once Morichito #1N is completed. Additional results and information will be forthcoming.
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. Contingent resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from a known accumulation using established technology or technology under development, but which are not considered to be commercially recoverable due to one or more contingencies.
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 to over 3,186,147 gross leasehold acres (825,149 net) in Brazil, Colombia and Peru. 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.
"Read Taylor"
Read B. 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)
302 North El Camino Real Suite 108
San Clemente, California 92672, USA
Tel: +1 (949) 542-3345
Fax: +1 (949) 542-3347
E-mail: info@pvecorp.com
Web: www.pvecorp.com
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