Petro-Victory reports 128% oil production increase and 37% cost reduction at Capixaba Energia after first year of operations

Petro-Victory Energy Corp. just dropped its first-year results for Capixaba Energia—an oil and gas asset in Brazil’s Espírito Santo Basin—and the numbers are hard to ignore. Oil production jumped 128%, gas production surged 471%, and production costs fell 37%, from US$25.8 to US$16.3 per barrel. The asset generated US$3.1 million (R$17 million) in free cash flow, which went straight back into the operation.

First-year results at Capixaba Energia

Let’s break those numbers down. Oil production went from 256 barrels per day to 583 barrels per day—in a single year. Gas production nearly quintupled, opening revenue streams that barely existed before. Cutting production costs from US$25.8 to US$16.3 per barrel means every barrel extracted is now meaningfully more profitable.

The US$3.1 million (R$17 million) in free cash flow didn’t go to distributions. It was reinvested directly into Capixaba Energia to keep the momentum going. Put it all together, and you’re looking at a real operational turnaround—not some incremental tweak at the margins.

The team ran technical assessments on more than 20 wells and electric submersible pump (ESP) systems to identify where existing inventory could unlock more value.

The workover campaign and reservoir validation drove production gains

Before spending on new wells, Petro-Victory figured out what was already in the ground. The team ran technical assessments on more than 20 wells and electric submersible pump (ESP) systems to identify where existing inventory could unlock more value.

The workover campaign that followed was impressively efficient—logging 2,682 productive hours against just 35 hours of non-productive time, a 98.7% operational efficiency rate, and wrapping up without a single accident.

Four wells were touched by the program: LP-38, LP-73, and LP-77D were successfully validated, and the Upper Urucutuca was confirmed as a new commercial horizon. That’s expanded development potential without drilling one additional well.

The technical work behind this was serious. Advanced seismic reprocessing and inversion sharpened reservoir characterization, while cased hole logging—including specialized oil saturation tools—helped locate bypassed hydrocarbons, pockets of oil that existing wells had left behind. Those findings shaped which opportunities the team prioritized first.

Infrastructure upgrades expanded capacity without additional capital expenditure

Production numbers only tell part of the story. Petro-Victory also overhauled the physical infrastructure supporting the asset without triggering additional capital expenditure.

Water injection capacity grew 67%, from roughly 12,000 barrels per day to 20,000 barrels per day. In a mature field, that matters considerably. Maintaining reservoir pressure through water injection is what keeps production rates from declining over time.

At the Lagoa Parda facility, separation, flotation, control valve, and fiscal metering systems were all upgraded. Coalescing filters were added to improve produced gas quality, and both generation reliability and energy availability were strengthened. On the cost side, the operation moved to Brazil’s free energy market, optimized its vehicle fleet, and brought certain technical analyses in-house that had previously gone to outside providers. Remote monitoring and centralized operational controls were also put in place—building a more scalable platform for whatever comes next.

Petro-Victory and Blue Oak’s partnership structure behind the results

These improvements didn’t happen in a vacuum. They were executed within a partnership structure Petro-Victory formalized at the start of 2025.

The strategic partnership with Blue Oak Investments was established on January 7, 2025, with a joint venture agreement following on February 28, 2025. The structure pairs Petro-Victory’s operational and technical know-how in Brazil’s onshore sector with Blue Oak’s capital resources and investment capabilities.

Capixaba Energia—the entity at the center of all this—holds 100% ownership of oil and gas assets in the Espírito Santo Basin, including the Lagoa Parda Cluster and two adjacent exploration blocks. One more number worth your attention: the weighted-average discount on oil sales improved by six percentage points, moving from 17.3% to 11.3%. Better realized pricing on top of lower costs strengthens the asset’s economics well beyond what production volumes alone suggest.

The company positions the Capixaba model as repeatable across Brazil and Latin America

Petro-Victory isn’t treating Capixaba Energia as a one-time win. The company describes the approach as a scalable model it plans to apply to other mature onshore assets across Brazil and potentially wider Latin America.

CEO Richard F. Gonzalez said it plainly in the company’s announcement: the results validate Petro-Victory Energy Corp.‘s ability to work alongside institutional capital to build scalable platforms across Brazil’s mature onshore oil and gas sector.

The company’s existing footprint is already substantial. As of the filing date, Petro-Victory manages 31 concession contracts covering 210,583 acres net to the company, plus four additional concessions held jointly with Blue Oak covering another 11,413 acres. Petro-Victory trades on the TSX Venture Exchange under the ticker VRY.

The first-year scorecard at Capixaba Energia is pretty clear. Oil production more than doubled, gas production grew nearly fivefold, and unit costs dropped by more than a third. New reservoir potential was confirmed without new drilling. Infrastructure capacity expanded without new capital expenditure, and the asset funded its own reinvestment. Whether Petro-Victory can replicate this across additional assets remains an open question — but the first-year data gives them a solid case to make.

Kelly Lippke

Kelly is an experienced writer with 15 years of experience exploring the big stories that shape our world, from tech breakthroughs and space exploration to climate, energy, and the fascinating quirks of science. She has a talent for turning complex ideas into sharp, memorable insights that stay with readers long after they’ve finished reading.