Petro-Victory Energy and BlueOak Investments have signed an agreement to acquire Capixaba Energia, a fully integrated onshore Brazilian production company.
The acquisition includes four oilfields in the Espírito Santo Basin, including the Lagoa Parda Cluster, and two exploration blocks adjacent to major producers.
It positions Petro-Victory and BlueOak for accelerated growth in Brazil's onshore oil and gas sector, leveraging Capixaba Energia's strong cash flow and critical infrastructure assets.
The total acquisition price is $17.5m (100.73m reais), including earn-outs.
BlueOak will fund 100% of the acquisition and act as the controller, while Petro-Victory will operate the assets.
Petro-Victory CEO Richard F. Gonzalez said: "I am very pleased to announce our first acquisition in partnership with BlueOak. The acquisition of Capixaba Energia marks a strategic milestone in our expansion, as we establish a hub of production and expertise in the Espírito Santo region.
“This acquisition strengthens our position in Brazil, firmly establishing Espírito Santo basin as a key area for production growth and complementing our presence in the Barreirinhas and Potiguar basins, where we are already well-positioned. We look forward to unlocking the full potential of these assets and driving long-term value creation with BlueOak."
Petro-Victory will initially hold a nominal equity position, which will increase to 20% and then 50% upon reaching certain thresholds.
The acquisition currently boasts an output of approximately 400 barrels of oil equivalent per day (boepd), with significant growth anticipated in the next 12–18 months, driven by a comprehensive workover and drilling campaign.
BlueOak CEO Meton Morais said: "Our investment in Capixaba Energia, in partnership with Petro-Victory, marks a pivotal step in our commitment to unlocking value in the Brazilian energy sector. Brazil is an increasingly attractive market for oil and gas investment and currently has more sellers than buyers of onshore assets.
“The Espírito Santo onshore basin offers a unique consolidation opportunity, given that we do not see a major structured and capitalised player investing in the development of its assets. We look forward to a successful partnership with Petro-Victory as we drive growth and create sustainable value through operational excellence and disciplined capital allocation."
