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CALGARY, March 3, 2015 /CNW/ - Petro-Victory Energy Corp. ("Petro-Victory" or the "Company") (VRY.V)
On December 1, 2014 Petro-Victory delivered a notice of audit to President Energy (the "Operator") for the years 2013 and 2014, amidst concerns over the alleged continuing cash demands from the Operator in excess of the approved work program and budget. The Company engaged experts skilled in the art of such audits who began their analysis of the project electronic records during the first week of January 2015. Simultaneously, the Company initiated a detailed review of drilling techniques and Operator field decisions that led to Overexpenditures and inadequate logging and well testing.
Pursuant to, but not limited to the aforementioned audit and technical review results, management and the Board of Directors of Petro-Victory have caused the Company's wholly owned Paraguayan subsidiary, Pirity Hidrocarburos S.R.L. ("Pirity") to seek injunctive relief barring the Operator from certain actions relating to Hydrocarbon Concession Law 3,479/08 (the "Pirity Block") in accordance with the Paraguayan Civil Code of Procedure's Preliminary Findings Process ("Diligencias Preparatorias").
Injunctions granted by the Courts of the Republic of Paraguay on March 2, 2015 are preventive in nature and take two forms:
An injunctive Prohibition to Innovate, which prohibits alteration of legal or factual states-of-affairs with respect to the Pirity Block; and
An injunctive Prohibition to Contract, which prohibits the addressee of the prohibition (the Operator) from entering into contractual agreements of any form whatsoever, with respect to the Pirity Block.
Such prohibitions preserve the status quo participation of Petro-Victory and the Operator in the Pirity Block throughout the Preliminary Findings and adjudication processes, the subject of which Petro-Victory anticipates shall be:
1) Legal action seeking the disgorgement of Operator's 59% Participating Interest in the Pirity Block for failure to perform certain obligations in accordance with Paraguayan Hydrocarbon Law 779/95, and the reversion of such Participating Interest to Petro-Victory's subsidiary, Pirity;
2) Legal action seeking the removal of President Energy as the Operator of the Pirity Block and reversion of Operatorship to Petro-Victory's subsidiary, Pirity; and
3) Legal action seeking an award for damages in favor of Pirity.
Petro-Victory's Chief Executive Officer, Richard F. Gonzalez commented:
"We firmly believe that Paraguay's hydrocarbon province is of great commercial scale and merely awaits development. We look forward to the timely adjudication of the matters at hand."
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities, in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws and may not be offered or sold within the United States unless an exemption from such registration is available.
Advisory Regarding Forward-Looking Statements
In the interest of providing Petro-Victory's shareholders and potential investors with information regarding Petro-Victory, including management's assessment of Petro-Victory's future plans and operations, certain statements in this press release are "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-looking information" within the meaning of applicable Canadian securities legislation (collectively, "forward looking statements"). In some cases, forward-looking statements can be identified by terminology such as "anticipate", "believe", "continue", "could", "estimate", "expect", "forecast", "intend", "may", "objective", "ongoing", "outlook", "potential", "project", "plan", "should", "target", "would", "will", "shall" or similar words suggesting future outcomes, events or performance. The forward-looking statements contained in this press release speak only as of the date thereof and are expressly qualified by this cautionary statement.
Specifically, this press release contains forward-looking statements relating to but not limited to: our business strategies, plans and objectives, and drilling and exploration expectations. These forward-looking statements are based on certain key assumptions regarding, among other things: our ability to add production and reserves through our exploration activities; the receipt, in a timely manner, of regulatory and other required approvals for our operating activities; the availability and cost of labour and other industry services; the continuance of existing and, in certain circumstances, proposed tax and royalty regimes; and current industry conditions, laws and regulations continuing in effect (or, where changes are proposed, such changes being adopted as anticipated). Readers are cautioned that such assumptions, although considered reasonable by Petro-Victory at the time of preparation, may prove to be incorrect.
Actual results achieved will vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. These and additional risk factors are discussed in our Final Prospectus dated July 11, 2014, as filed with Canadian securities regulatory authorities at www.sedar.com.
The above summary of assumptions and risks related to forward-looking statements in this press release has been provided in order to provide shareholders and potential investors with a more complete perspective on Petro-Victory's current and future operations and such information may not be appropriate for other purposes. There is no representation by Petro-Victory that actual results achieved will be the same in whole or in part as those referenced in the forward-looking statements and Petro-Victory does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities law.
Not for distribution to U.S. Newswire Services or for dissemination in the United States. Any failure to comply with this restriction may constitute a violation of U.S. securities laws.
SOURCE Petro-Victory Energy Corp.
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For further information: Petro-Victory Energy Corp., Richard F. Gonzalez, CEO - 972-239-3084; Petro-Victory Energy Corp., Mark Bronson, CFO and Corporate Secretary - 817-838-4744; Brisco Capital Partners Corp., Scott Koyich - 403-619-2200