Mr. Richard Gonzalez reports

PETRO-VICTORY ENERGY CORP. SIGNS MEMORANDUM OF UNDERSTANDING WITH ENEVA FOR THE DEVELOPMENT OF NON-ASSOCIATED GAS RESOURCES IN THE SAO JOAO FIELD LOCATED IN THE STATE OF MARANHAO, BRAZIL

Petro-Victory Energy Corp. has entered into a memorandum of understanding (MOU) with Eneva for the development of Petro-Victory's non-associated gas resources, located in the Sao Joao field, at the Barreirinhas basin, in the state of Maranhao.

Highlights:

• The Sao Joao field non-associated gas reservoirs were discovered and tested by a previous operator and such resources are described in the GLJ reserve and resource report dated as of Dec. 31, 2023, with 50.1 billion cubic feet (1.4 billion cubic metres) of non-associated gas.
• The Sao Joao field is 100 per cent owned and operated by Petro-Victory.
• On Sept. 5, 2024, Petro-Victory signed an MOU with Eneva to develop the non-associated gas resources in the Sao Joao field.
• Eneva is one of the largest Brazilian integrated energy operators and onshore LNG (liquefied natural gas) producer, with operations 250 kilometres (km) from the Sao Joao field.
• Eneva will perform and pay all costs related to the drilling, logging, completion and testing of one non-associated gas well, targeting the Bom Gosto/Arpoador formations, at an approximate depth of three km.
• Upon completion of the well commitment, Eneva will have an option to perform and pay all costs related to a 3-D seismic data acquisition, processing and interpretation program covering the entire Sao Joao field.
• Upon completion of the seismic commitment, Eneva will have the option to establish a joint venture (JV) company with Petro-Victory to develop the non-associated gas and agree on a unified gas monetization solution. Eneva will retain a 72-per-cent participation interest in the JV. Petro-Victory will retain a 28-per-cent interest in the JV. The JV structure will ensure that Petro-Victory retains 100 per cent of revenues from the oil production.

All activities to be carried out in the Sao Joao field, under the MOU and the establishment of the JV will be subject to the approval of the National Petroleum Agency, when applicable.

About Eneva

Eneva, listed on the new markets segment (Novo Mercado) of B3 (Brazilian Stock Exchange) since 2007, is a Brazilian integrated energy operator that contributes to energy transition by transforming natural gas into electrical energy through the reservoir-to-wire (R2W) business model. Eneva is also a relevant onshore LNG producer in Brazil and has a natural gas production capacity of approximately 317 million cubic feet per day (or nine million cubic metres per day) to meet its operational plants' demand under the R2W model, and has plans to increase another 5.6 million cubic metres per day by 2026.

Eneva holds concession contracts spanning over 51,000 square km across onshore Brazil and operates 15 natural gas fields/areas. Eneva has a contracted thermoelectric installed capacity of six gigawatts, both operational and under construction, accounting for 11 per cent of Brazil's capacity of thermal power generation. Also, Eneva currently operates one natural gas liquefaction unit located in the state of Amazonas and is concluding the construction of a new unit in the state of Maranhao, located 250 km from the Sao Joao field.

Richard F. Gonzalez, chief executive officer of Petro-Victory, commented:

"We are thrilled to announce this strategic collaboration with Eneva, a pioneer in the reservoir-to-wire business model in Brazil. This memorandum of understanding marks a significant milestone for Petro-Victory as we move forward in exploiting and commercializing the non-associated gas resources of our Sao Joao field. The collaboration with Eneva not only underscores the potential of the Sao Joao field but also aligns with our commitment to unlocking value for our stakeholders through innovative and sustainable energy solutions. We look forward to working closely with Eneva to develop a unified gas monetization strategy at our Sao Joao field."

About Petro-Victory Energy Corp.

Petro-Victory is engaged in the acquisition, development and production of crude oil and natural gas resources in Brazil. The company holds 100-per-cent operating and working interests in 38 licences totalling 257,604 acres in two different producing basins in Brazil. Petro-Victory generates accretive shareholder value through disciplined investments in high-impact, low-risk assets. The company's common shares trade on the TSX Venture Exchange under the ticker symbol VRY.

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