Posted on: February 22, 2022

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Gneiss Energy was delighted to act as financial advisor to Petro-Victory Energy Corp (TSX-Venture: VRY.V) on its successful Private Placing which raised proceeds of CAD$10.9 million.

The fundraise will support the planned drilling programme of 4 wells at Andorinha field, and 3 workovers at the São João field and will help the Company to deliver a broader 2022 work programme including geological and geophysical work on its wider licence portfolio targeting further drilling activity and reserve growth. In addition, the funds will provide optionality to participate in upcoming Brazilian onshore oil and gas licensing rounds. The fundraise will further broaden the shareholder base with the introduction of industry and blue-chip institutional investors, including a strategic investment by ACAM LP.

Onshore Brazil represents one of the hottest global markets for oil and gas deals, driven by the large Petrobras divestment programme (c.US$78 billion), supportive government policies to support investment, and an attractive fiscal regime. Petro-Victory has established a large acreage position in the heart of the Potiguar basin providing them with a ready-made portfolio of drilling opportunities to create value for stakeholders.

Commenting on the fundraise, Petro-Victory CEO Richard Gonzalez said, “I’m pleased that we’ve now closed the private placement of CAD$10.9 million. This oversubscribed placing has expanded our shareholder base to include blue-chip institutional investors and provides the funds required for a significant program of activity over the coming year amongst broader growth in the business.

“As we progress with our fully funded drilling program and bring into production some of the reserves described in our 31 December 2020 reserves report from GLJ, we will be de-risking the significant net asset value associated with those volumes and hope to see this more fully reflected in our market value.”

“We are now pressing ahead with operations on the ground and look forward to updating the market on progress.”

For the official press release, click here.

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