Petro-Victory says Capixaba Energia output rose, costs fell in first year
Petro-Victory Energy Corp. said its first year operating Capixaba Energia after a 2025 partnership and acquisition brought higher oil and gas output, lower costs and positive free cash flow.
Petro-Victory Energy Corp. said its first year operating Capixaba Energia after a partnership and acquisition announced in April 2025 led to higher oil and gas production, lower costs and positive free cash flow.
The company said the results are being used to show how it is improving mature onshore assets in Brazil’s Espírito Santo Basin. Petro-Victory said the asset generated R$17 million in free cash flow from operations and that the cash was reinvested in the business.
In a press release published Aug. 13, 2026, the company said oil production rose from 256 barrels per day to 583 barrels per day. It said gas production increased 471% over the same period. Petro-Victory also said production costs fell 37%, from US$25.8 per barrel to US$16.3 per barrel, and that the weighted-average discount on oil sales improved from 17.3% to 11.3%.
The release said the first year included a workover and technical evaluation program that ran at 98.7% operational efficiency, with 2,682 productive hours, 35 hours of non-productive time and zero accidents. Petro-Victory said more than 20 wells and ESP systems were technically assessed, and that three wells — LP-38, LP-73 and LP-77D — were validated. It also said the Upper Urucutuca was confirmed as a new commercial horizon.
The company said water injection capacity rose about 67%, from 12,000 barrels per day to 20,000 barrels per day, without additional capital spending. It said the operation also improved separation, flotation, control valve and fiscal metering systems at Lagoa Parda, added coalescing filters, increased generation reliability and energy availability, and moved to the free energy market. Petro-Victory said it also optimized its vehicle fleet, reused existing materials, internalized selected technical analyses and installed remote monitoring and centralized operational controls.
Petro-Victory said the strategic partnership with Blue Oak Investments began on Jan. 7, 2025, and that the two companies executed a joint venture agreement on Feb. 28, 2025. The company said Capixaba Energia owns oil and gas assets in the Espírito Santo Basin, including the Lagoa Parda Cluster and two adjacent exploration blocks.
CEO Richard F. Gonzalez said in the release that the results reflected the partnership with Blue Oak Investments and the company’s work on mature onshore assets. Petro-Victory also said it had validated the results without additional drilling.
The company said its broader portfolio includes 31 concession contracts with 210,583 net acres, plus four additional concessions and 11,413 acres owned jointly with Blue Oak in Capixaba Energia. It said its common shares trade on the TSXV under the ticker VRY.
Petro-Victory said the free cash flow was being reinvested and that ongoing technical and operational work would continue at the asset.
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