Petro-Victory Energy Corp. and Azevedo & Travassos Energia S.A. (ATE) have signed a binding memorandum of understanding on July 2, 2025 (MOU) under which Petro-Victory will become a subsidiary of ATE. ATE has agreed to acquire all shares of Petro-Victory.
The merging of the two companies is expected to increase shareholder value through the development of ATE’s growth strategy with the supplementation of Petro-Victory’s diversified portfolio of production and exploration assets, the company announced.
As part of the transaction, shareholders of record at closing will be entitled to a gross overriding royalty (GORR) in the percentage of ten percent (10%) on the gross revenue from all new production arising from fields that already exist in the concessions owned by the company prior to the MOU or that will be created after the date of the MOU in the concessions owned by the company, except with respect to the production of the reservoirs of the São João Field that are the subject of the partnership between PVE and Eneva S.A. (Eneva).
The GORR will apply, for each PV Field, for a period of fifteen (15) years from the start of its commercial production or, for existing fields that are already in production, from the closing date.
