Petro-victory Energy Corp Class A · TSXV:VRY
Petro-victory Energy Corp Class A — Investor Presentation (July 2023)
35 slides from Petro-victory Energy Corp Class A's investor presentation, July 2023
Slide 1: Petro-Victory Energy Investor Presentation
July 2023 Petro-Victory Energy Investor Presentation
Slide 2: Overview
Overview
Slide 3: Leadership Group
Board and management team with over 300 years of experience Leadership Group Richard F. Gonzalez Andre Naslausky Daniel R. Wray Jose Andrade Chairman / CEO Chief Operating Officer Chief Financial Officer Brazil Finance Manager 33 years of experience 20 years of experience 14 years of experience 33 y
Slide 4: Summary Highlights
Summary Highlights • Break-up of 70-year monopoly Unique opportunity • c.US$75 billion divestiture program Low-risk production • Onshore fields with discovered resource but low recovery rates to date in global context Why Onshore Brazil? • USD Brent-correlated pricing Attractive economics • Low cape
Slide 5: Corporate overview
Corporate overview Corporate details Capitalization C$ US$ • Listed on TSX Venture Exchange (TSX.V:VRY), since 2014 IPO Shares outstanding (#, millions) 20.4 20.4 Current price ($/share) 2.97 2.23 • Headquartered in Dallas, USA with offices in Mossoro, RN, Brazil Market cap ($, millions) 60.7 45.5 •
Slide 6: Portfolio
Portfolio
Slide 7: Portfolio overview
Portfolio overview Summary Production outlook for 6 of 38 blocks 2,500 1 2 2 1 2,000 1,500 boe/d 1,000 500 38 257,604 - Blocks Acres Jan-23 Jan-24 Jan-25 São João POT-391 POT-281 Andorinha Trapiá (boe) Alto Alegre # Basin Fields / Areas Working Interest 2P Reserves* (mmboe) Value (NPV10)* NPV10/boe
Slide 8: Potiguar basin
Potiguar basin Basin summary Potiguar Basin Over 1 billion barrels Current daily produced across >70 First discovery 1979 production ~39,000 onshore fields barrels of oil equivalent Potiguar basin Canto do Amaro (100% 3R) Petro-Victory licenses • 150mmbbl produced since 2000 • Limited historical dri
Slide 9: PVE – Potiguar Basin Portfolio
PVE – Potiguar Basin Portfolio POT-281 2P Rec. – 1.4 MMBO POT-391 Alto Alegre 2P Rec. – 0.6 MMBO 2P Rec. – 0.5 MMBO Pampo Morgan Mean Rec. – 0.3 MMBO Mean Rec. – 0.5 MMBO Manga Larga Mean Rec. – 0.3 MMBO Ventasso Mean Rec. – 0.8 MMBO Andorinha 2P Rec. – 2.0 MMBO Mustang Mean Rec. – 2.0 MMBO Campolin
Slide 10: Barreirinhas basin
Barreirinhas basin Basin summary Produced 75,000 bbl of oil Only producing field in the between 1984 and 1988 then First discovery 1966 suspended until PVE in 2020 Basin São João Field Barreirinhas basin São João Field © Petro-Victory Energy | Investor Presentation 10
Slide 11: São João Development Concept
São João Development Concept Net Oil Pay - Sao Joao Wells % of Net Oil Pay Online 100 100% 90 90% 80% 80 70% 70 60% 60 Net Pay (m) 50% 50 40% 40 30% 30 20% 20 10% 10 0% SJ-01 SJ-03 SJ-04 SJ-05 SJ-06 SJ-07 SJ-08 SJ-10 SJ-11 0 SJ-01 SJ-03 SJ-04 SJ-05 SJ-06 SJ-07 SJ-08 SJ-10 SJ-11 Net Pay - Online Net
Slide 12: Value Creation
Value Creation
Slide 13: Value Creation
Value Creation • Petro-Victory is the largest acreage holder in the Potiguar basin exploration blocks (~70%), Brazil’s prominent onshore oil producing region Summary • Recently expanded its position to 34 blocks and 3 fields in the Potiguar • G&G: 3D Seismic Reprocessing, Prospect Identification, De
Slide 14: Continuing to deliver value across the portfolio
Continuing to deliver value across the portfolio Case Study POT-T-564 High ranking opportunities POT-T-564 Drill ready prospect inventory Prospect Primary target Well TD Best estimate undiscovered resources • Identify undervalued and underdeveloped oil and gas assets Fm. m boe • Quantify the potenti
Slide 15: Appaloosa – drilling target to unlock value
Appaloosa – drilling target to unlock value Near-term drilling target identified POT-T-564 Drill ready prospect - Appaloosa • 637,000 boe Mean Recoverable • Quality of Seismic Data - High • Expected to be analogous to Andorinha • Main Risks – Reservoir Quality and Oil regarding hydrocarbon type and
Slide 16: Source Rock Study
Source Rock Study
Slide 17: Map of PVE assets and prospects
WAN PETRO VICTORY ENERGY - To t¢ je . = a ql rnd D a.) Ay —_ Map Itens Wells * Dy © HC Bearing or Shows * Other Expl. & Prod. Wells [J eve main Prospects [| PVE Assets {| Non-PVE Oil Fields [7] Non-PVE Expl. Blocks
Slide 18: Conventional, shallow, oil fields
Conventional, shallow, oil fields Conventional oil fields located in extensional structures within the graben Oil migration through faulting to charge shallower reservoirs Thick Cretaceous graben with Source Rock in oil window Footer
Slide 19: Volumetric Results from Source Rock Study
Volumetric Results from Source Rock Study Independent GLJ Evaluation Review report assigns oil in- Estimate Total Oil in Place place volumes for the Pendencia Source Rock located P10 (low) 17.9 billion bbls of oil in place within the Petro-Victory assets. P50 (mean) 36.2 billion bbls of oil in place
Slide 20: Corporate Details
Corporate Details
Slide 21: Pillars of our strategy
Pillars of our strategy 01 02 03 Technical Operational Financial Identify Drill Generate Cashflow Quantify Test Profitability Certify Reserves Produce Reinvest © Petro-Victory Energy | Investor Presentation 21
Slide 22: Capital structure
Capital structure Top holders Fully diluted share capital Shareholder Shares held (Ord. + Rest.) % Total outstanding shares Instrument Price Quantum Comment ACAM LP 3,200,000 15.66% Ordinary Shares - 14,433,388 Excluding restricted PPF 12 2,289,694 11.21% Restricted Shares - 5,996,461 - 579 Max 2,27
Slide 23: Trading at a substantial discount to reserve value
Trading at a substantial discount to reserve value Reserve values per share NAV per share for different reserve categories (C$) NPV10 NPV10 C$/Share C$/Fully diluted 1P mboe* (US$ millions)* (C$ millions) NAV share NAV C$23.68/sh – Current share price* 88% below NAV Andorinha 527 24.6 32.8 1.61 1.01
Slide 24: ESG: Solar Initiative
ESG : Solar Initiative
Slide 25: ESG commitment
ESG commitment E S G Environmental Social Governance Petro-Victory is determined to maintain a high-level Petro-Victory has developed a corporate Petro-Victory is committed to conducting of corporate citizenship by positively impacting the governance model and business philosophy that its business a
Slide 26: Andorinha Solar Project
Andorinha Solar Project Summary • First renewable project being undertaken by an oil company in the State of Rio Grande do Norte to generate renewable energy to support the extraction of hydrocarbons • Estimated to reduce the Company’s Scope 2 emissions by an estimated 60 tonnes of CO2 per year • Ca
Slide 27: Community Impact
Community Impact Christmas at School 2022 • Benefiting schools with K – 8th in neighboring vilas with 340 students and more than 900 participants in attendance • Vila Paraná – 1.5 km from our fields • Vila São Paulo – 3.5 km from our fields • Vila Guanabara – 6.5 km from our fields © Petro-Victory E
Slide 28: Investment Highlights
Investment Highlights
Slide 29: Investment Highlights
Investment Highlights Onshore Brazil opened to independent E&P Early mover advantage • Petrobras divestments created a unique opportunity • Petro-Victory has been active in Brazil since 2016, establishing a • Brazilian government prioritizing onshore oil and gas dedicated presence in 2017 • Opportun
Slide 30: Appendix
Appendix
Slide 31: Acquisition Strategy 1 – Andorinha Field
Acquisition Strategy 1 – identify, quantify, certify, develop Andorinha Field • Purchased for US$1.25MM • No production or reserves at time of purchase. • PVE acquired 100% working interest in November 2020 • Legacy wells put online using existing production facilities. Small ops team in place. Comm
Slide 32: Acquisition Strategy 2 – São João Field
Acquisition Strategy 2 – identify, quantify, certify, develop São João Field • Purchased 100% for US$0.965MM • PVE to took operatorship in September 2022 after ANP approval • Re-entered 3 abandoned wells, tested oil, and declared commerciality in April 2020 • Installed production facilities at the f
Slide 33: Acquisition Strategy 3 – Trapiá Field
Acquisition Strategy 3 – identify, quantify, certify, develop Trapiá Field • Purchased 100% for US$0.08MM • No production or reserves at time of purchase • PVE re-entered TR-02 abandoned well and tested oil June/July 2021, and then re-entered QX-01 abandoned well in September 2022 and tested oil. •
Slide 34: Acquisition Strategy 4 – Alto Alegre Field
Acquisition Strategy 4 – identify, quantify, certify, develop Alto Alegre Field • Purchased 100% for US$0.05MM • No production or reserves at time of purchase • PVE re-entered 1 abandoned well and tested oil across 2 Pendencia Fm reservoirs in Q4 2021 • Installed production facilities at the well ar
Slide 35: Thank you
July 2023 Thank you Investor Presentation
Petro-Victory Energy — Investor Presentation (July 2023) on 6ix