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Petro-Victory Energy Corp. (TSXV: VRY), an oil and gas exploration and production company focused on onshore Brazil, provided an update on its recent strategic milestones, including transformative partnerships and acquisitions that are accelerating the Company’s growth and unlocking significant shareholder value.

Richard F. Gonzalez, CEO of Petro-Victory, commented: “The past 12 months have marked significant milestones for Petro-Victory. We have successfully executed multiple development agreements that both fortify our position inÌýBrazil’sÌýonshore sector and validates the years of strategic work our experienced Board and management team have invested in building a high-quality asset base.

“With strategic capital partnerships in place, we have positioned Petro-Victory to realize the significant value across our portfolio, generate free cash flow, and deliver meaningful growth for our shareholders. Our focus remains on disciplined execution, scaling production, and driving profitability and free-cash flow.”

Recent Acquisitions Underscore Strength of Partnership-Driven Growth ModelÌý

The recently announced Capixaba Energia acquisition serves as a proof point of Petro-Victory’s highly effective partnership strategy. Despite macro uncertainty and commodity price volatility, Petro-Victory has positioned itself to grow by securing low-risk, high-upside assets with premier industry partners. As legacy producers look to scale back, Petro-Victory is charging ahead, leveraging this flexible, performance-based joint venture model to unlock value and capitalize on accelerated M&A opportunities acrossÌýBrazil’sÌýonshore sector.

Key Highlights

• Establishment of Strategic Partnership withÌýBlueOak Investments – Capital Partner
• PVE/BlueOak Partnership acquires Capixaba Energia – launching Strategic Growth Hub
• Development Agreement withÌýEneva, One ofÌýBrazil’sÌýlargest energy operators – fully funded well commitment and fully funded seismic commitment followed by Joint Venture
• ATE Partnership – fully funded drilling of 2 in-field development wells atÌýAndorinha Field followed by option for ATE to buy-in to the Company’s assets at pre-determined pricing
• Acquisition of 13 Oil-Producing Fields from BravaÌýEnergia S.A. – adjacent to existing concessions
• Advancing large-scale resource potential in the source rock of theÌýPotiguar Basin – 36.2 billion barrels of undiscovered oil originally in place
• Significant proven reserves per the company’s Independent Reserve & Resource Report

Current Development Plan

• Fully fundedÌýworkover and drilling campaign in the Espirito Santo Basin in 2025
• Full carry on 2 in-field development wells in theÌýPotiguar Basin in 2025
• Full carry on one gas well + 3D seismic to develop theÌýSão João Field in 2026

A new corporate presentation has been uploaded to our website atÌý

Petro-Victory and BlueOak Investments Form Strategic Partnership to Accelerate Growth inÌýBrazil’sÌýOnshore Oil & Gas Sector Ìý

±õ²ÔÌýJanuary 2025, Petro-Victory partnered with BlueOak Investments to establish a special purpose vehicle (SPV) dedicated to acquiring and developing oil and gas assets acrossÌýBrazilÌý²¹²Ô»åÌýLatin America. This strategic alliance combines BlueOak’s financial expertise and capital strength with Petro-Victory’s deep operational capabilities, creating a platform for sustainable growth and value creation in the region’s energy sector.

The first successful transaction under this partnership is the acquisition of Capixaba Energia, a producing oil and gas asset in the EspíritoÌýSantoÌýBasin. BlueOak fully funded the initial payments for the USDÌý$17.5 millionÌýacquisition and has committed an additional USDÌý$5 millionÌýfor capital expenditures to enhance production and operational efficiency.

Capixaba Energia – A Strategic Growth Hub

The Capixaba acquisition strengthens Petro-Victory’s position inÌýBrazil’sÌýonshore oil and gas sector, with established cash flow, proven production, and significant expansion potential.

Key Highlights:

• Current Production & Growth Plan:ÌýProducing approximately 400 boe/d (88% oil), with a planned workover and drilling campaign expected to significantly increase production.
• Strategic Infrastructure:ÌýThe asset includes critical oil and gas infrastructure which will serve as a strategic regional hub.
• Proven Reserves & Exploration Upside:ÌýThe acquisition includes four oil fields, including the Lagoa Parda Cluster, plus two exploration blocks near major producing assets. A new independent reserves report is expected to confirm additional upside.
• Experienced Operators & Investors:ÌýPetro-Victory’s previous involvement in the Lagoa Parda Cluster provides deep technical expertise, while BlueOak’s extensive investment experience inÌýLatin America’sÌýoil and gas sector reinforces a strong foundation for success.
• Joint Venture Agreement with BlueOak:ÌýPVE will begin with a nominal equity position at closing and will become a relevant equity holder (20% and then 50%), upon reaching certain thresholds. No additional capital is required to be injected by the Company to attain the relevant equity position and the Company will be paid to operate the assets

With this acquisition, Petro-Victory and BlueOak are positioned for accelerated growth, leveraging their combined strengths to maximize production, optimize operations, and drive long-term value inÌýBrazil’sÌýenergy market. The transaction is expected to close in the second quarter of 2025.

Petro-Victory and Eneva, One ofÌýBrazil’sÌýLagest Energy Operators, Partner to Develop São João Field’s Natural Gas Resources

±õ²ÔÌýSeptember 2024, Petro-Victory entered into a Memorandum of Understanding (MOU) with Eneva, one ofÌýBrazil’sÌýleading integrated energy operators, to develop non-associated gas resources in the São João Field, located in the Barreirinhas Basin, Maranhão. This partnership combines Petro-Victory’s 100% ownership and operational expertise in the São João Field with Eneva’s extensive experience in gas monetization and infrastructure development.

Under the MOU, Eneva will fully fund the initial drilling and testing of a non-associated gas well, with additional commitments to acquire 3D seismic and subsequently establish a joint venture (JV) for long-term gas development and commercialization.

São João Field: Unlocking Gas Potential

The partnership positions Petro-Victory and Eneva to unlock significant natural gas resources, leveraging Eneva’s proximity and expertise in LNG production and energy infrastructure.

Key Highlights:

• Certified Gas Reserves: São João Field holds an estimated 50.1 billion cubic feet (1.4 billion cubic meters) of non-associated gas, as per theÌýDecember 31, 2023, GLJ reserve report.
• Drilling & Testing Commitment: Eneva will fund and execute all activities related to the drilling, logging, completion, and testing of a non-associated gas well targeting the Bom Gosto/Arpoador formations at a depth of approximately 3 km.
• Seismic Exploration Option: Upon completion of the initial well, Eneva may opt to finance and conduct a 3D seismic acquisition and interpretation program covering the entire São João Field.
• Joint Venture Formation: Upon completion of the well commitment and the seismic commitment, Eneva has the option to establish a joint venture (JV) with Petro-Victory, with Eneva holding a 72% interest and Petro-Victory retaining 28%. Petro-Victory will continue to receive 100% of revenues from oil production within the field.
• Strategic Proximity & Infrastructure: Eneva operates an onshore LNG production hub 250 km from São João Field, positioning the project for efficient gas monetization.
• Regulatory Approval: All activities, including the formation of the JV, are subject to approval byÌýBrazil’sÌýNational Petroleum Agency (ANP).

With this partnership, Petro-Victory and Eneva are positioned to develop a unified gas monetization strategy, contributing toÌýBrazil’sÌýgrowing demand for natural gas while maximizing the value of the São João Field’s resources

Petro-Victory and ATE Partner to Advance Oil & Gas Development in the Potiguar Basin

±õ²ÔÌýJune 2024, Petro-Victory entered into a definitive option agreement and assignment of interest with Azevedo Travassos Petroleo S/A (“ATE”), a pioneering Brazilian oil and gas company with a strong track record in exploration and production. This partnership brings together Petro-Victory’s operational expertise and ATE’s extensive industry experience to accelerate the development of key assets in the Potiguar Basin, Rio Grande do Norte.

Under the agreement, ATE will fully fund an initial work program across two Petro-Victory-owned and operated concessions, with a structured revenue-sharing model and an option for ATE to acquire a 50% stake in the assets at pre-determined pricing.

Strategic Development of Andorinha Field & POT-T-281 Block

The partnership is focused on unlocking additional production potential from two key assets in the Potiguar Basin, leveraging ATE’s technical and financial resources to maximize operational efficiency and output.

Key Highlights:

• Fully Funded Work Program: ATE will cover 100% of costs for drilling and completing two wells in the Andorinha Field, as well as conducting a workover operation on the CR-2 well in the POT-T-281 block.
• Revenue Sharing Model: Until ATE recovers its capital investment, net income from these wells will be split 75% to ATE and 25% to Petro-Victory.
• Petro-Victory Retains Operatorship: Petro-Victory will continue to operate both assets, ensuring consistency in execution and oversight. ATE may offer engineering, construction, and well services at its discretion.
• Certified Reserves & Acquisition Option: An independent reserve report will be commissioned upon completion of the work program. ATE will have the option to acquire a 50% stake in both assets atÌý$10Ìýper barrel of proven reserves (1P) andÌý$4Ìýper barrel of probable reserves (2P), with the option exercisable within nine months following the completion of the work program.
• Long-Term Growth Potential: This collaboration aims to expand market reach, enhance operational synergies, and unlock additional value in the Potiguar Basin through ongoing technical and financial cooperation.

By combining collective expertise and resources, Petro-Victory and ATE are well-positioned to maximize production, optimize asset value, and explore future growth opportunities inÌýBrazil’sÌýoil and gas sector.

Petro-Victory and ATE Partner for Acquisition of 13 Oil-Producing Fields inÌýBrazil’sÌýPotiguar Basin

±õ²ÔÌýFebruary 2025, Petro-Victory entered into a Sale and Purchase Agreement (SPA) with Azevedo & Travassos Petróleo S.A. (“ATE”) to acquire 13 oil-producing fields in the Potiguar Basin, located in Rio Grande do Norte,ÌýBrazil. The acquisition includes the Polo Porto Carão and Polo Barrinha clusters, currently operated by 3R RNCE S.A. and 3R Potiguar S.A., subsidiaries of Brava Energia S.A. This partnership combines Petro-Victory’s operational expertise and ATE’s strategic partnership to enhance both companies’ growth in one ofÌýBrazil’sÌýmost prolific onshore oil regions.

The deal, which is structured as a 50/50 partnership, highlights the potential for increased oil production and long-term operational synergies.

Polo Porto Carão & Polo Barrinha: Strategic Acquisition for Growth

This acquisition provides Petro-Victory with a substantial increase in production capacity and positions both companies for future expansion inÌýBrazil’sÌýkey oil-producing region.

Key Highlights:

• Oil Fields: The acquisition includes 13 oil fields with fully operational production facilities, covering 38,301 acres, gross (10,151, net).
• Production: Current production is approximately 250 barrels of oil per day, gross (125, net), with plans for a high-impact work program designed to significantly increase production.
• Reported Statistics: The National Agency of Petroleum reports a 125-million-barrel oil-in-place volume with a 13.3% recovery factor.
• Acquisition Value: The total value of the acquisition is ±«³§Ìý$15 million, with Petro-Victory’s share being ±«³§Ìý$7.5 million.
• Payment Structure: The payment will be made in four tranches, with Petro-Victory’s contribution pro-rated at its 50% working interest:
  • ±«³§Ìý$0.6 millionÌýpaid at signing
  • ±«³§Ìý$2.9 millionÌýto be paid at closing
  • ±«³§Ìý$3.5 millionÌýto be paid one year after closing
  • ±«³§Ìý$4.5 millionÌýto be paid two years after closing
  • ±«³§Ìý$3.5 millionÌýto be paid with a 7% gross overriding royalty
• Positive Deal Terms: The company will receive credit at closing for cash generated from oil production and sales starting from the signing date.

Strategic Expansion in the Potiguar Basin

This partnership underscores Petro-Victory’s commitment to expanding its onshore oil portfolio inÌýBrazil. By leveraging ATE’s expertise and combining resources, Petro-Victory is well-positioned to optimize production from these newly acquired assets and capture synergies with its existing holdings in the region. With this acquisition, Petro-Victory continues to grow its footprint inÌýBrazil, enhancing its ability to maximize production and generate value for its stakeholders in the Potiguar Basin.

Advancing Large-Scale Resource Potential in the Potiguar Basin

Petro-Victory continues to assess the significant unconventional potential of the Pendencia Formation inÌýBrazil’sÌýPotiguar Basin. Through the Company’s position in 100% owned concessions, PVE controls a significant portion of this highly prolific basin, which spans 48,000 km², including 21,000 km² onshore. A third-party qualified reserve evaluator estimates that the company’s concessions contain 36.2 billion barrels of undiscovered oil-in-place within the Pendencia Formation, underscoring the resource opportunity. While still in the early stages of assessment, these findings highlight the basin’s strong potential for future development.

The geological characteristics of the Potiguar Basin further support its resource potential. Sediments in the basin can reach thicknesses of up to six kilometers, creating a favorable environment for hydrocarbon accumulation. The Pendencia Formation, which lies directly on basement igneous rocks, consists primarily of lacustrine sediments associated with the basin’s rifting phase. Historically, significant oil discoveries have been made in the overlying Açu Formation, further validating the basin’s prospectivity. Additionally, oil production from sands within the Pendencia Formation has confirmed its role as both an important source rock and a promising production target.

With complete ownership of its concessions and a strategic focus on unlocking the potential of the Pendencia Formation, Petro-Victory is well-positioned to leverage this significant resource base. As exploration and assessment efforts continue, the company stands to benefit from the upside potential within one ofÌýBrazil’sÌýmost promising unconventional plays.

Summary of Reserves and Resources

As announced in the press release datedÌýMay 9, 2024, the Company’s Independent Reserve and Resource Report as ofÌýDecember 31, 2023, and issued by GLJ, Ltd. datedÌýApril 25, 2024Ìý(“GLJ Report”) added development pending risked contingent resources of 8.4 MMboe. The GLJ Report is summarized below.

The Company holds 100% working interest in thirty-eight concessions. Six of the thirty-eight concessions have reserves included in the GLJ Report. The Company continues to invest geological and geophysical resources in further evaluation of the remaining thirty-two blocks. The additional thirty-two concession blocks, the newly acquired 13 fields in the Potiguar basin, and the partnership with BlueOak in Capixaba are not included in the reserve figures below.

Furthermore, the Company has identified 16 opportunities across 12 of the other blocks. Of these, seven opportunities represent economically viable prospects. The Company plans to drill three wells in 2025 and four wells in 2026 as part of its continued exploration and development strategy.

A new reserve report is expected to be released this month.

About Petro-Victory Energy Corp.

Petro-Victory Energy Corp. is an oil and gas company engaged in the acquisition, development, and production of crude oil and natural gas inÌýBrazil. The Company holds interest in 55 licenses covering 295,829 acres, net across three producing basins⁽¹⁾. Through disciplined investments in high-impact, low-risk assets,ÌýPetro-Victory is focused on delivering sustainable shareholder value. The Company’s common shares trade on the TSX Venture Exchange under the ticker symbol VRY