Petro-Victory Energy Delivers Transformational First-Year Performance at Capixaba Energia, More Than Doubling Oil Production and Generating Relevant Free Cash Flow

Richard F. Gonzalez, Chief Executive Officer of Petro-Victory, commented:

"Our first year at Capixaba Energia demonstrates the strength of our strategic partnership with Blue Oak Investments and Petro-Victory's ability to unlock value from mature onshore assets. We increased oil production by 128%, grew gas production by 471%, and reduced production costs by 37%, while validating new reservoirs without additional drilling.

These results validate our operating model and demonstrate Petro-Victory's ability to work alongside institutional capital to build scalable platforms across Brazil's mature onshore oil and gas sector. We believe this approach provides a strong foundation for continued growth and value creation."

First-Year Highlights

• Oil production increased 128%, from 256 bbl/d to 583 bbl/d.
• Gas production increased 471%, creating new revenue streams and contributing to cost reductions.
• Production costs decreased 37%, from US$25.8/bbl to US$16.3/bbl.
• R$17 million of free cash flow from operations was generated and reinvested into the business.
• 98.7% operational efficiency was achieved during the workover campaign, with only 35 hours of non-productive time and zero accidents.
• Three wells — LP-38, LP-73 and LP-77D — were successfully validated, while the Upper Urucutuca was confirmed as a new commercial horizon, without additional drilling.
• Water injection capacity increased 67%, from approximately 12,000 bpd to 20,000 bpd, without additional CAPEX.

One Year of Operational Transformation

During its first year of operations, Petro-Victory and its partner Blue Oak implemented a comprehensive program focused on production optimization, reservoir development, operational efficiency and infrastructure improvements across Capixaba Energia's asset base.

Oil production increased from 256 bbl/d to 583 bbl/d, representing growth of 128%, while gas production increased 471%. The significant increase in gas production created additional revenue opportunities while supporting the Company's broader strategy to maximize the economic value of existing production.

The production improvements were accompanied by a material reduction in the cost base. Production costs declined 37%, from US$25.8/bbl to US$16.3/bbl. At the same time, the weighted-average discount on oil sales improved by six percentage points, from 17.3% to 11.3%, further strengthening realized economics.

Capixaba Energia generated R$17 million in free cash flow from operations, which was reinvested into the business to support continued optimization and growth.

Workover Campaign and Reservoir Validation

A central component of the first-year strategy was an intensive workover and technical evaluation program designed to unlock production and identify additional opportunities within the existing well inventory.

The campaign achieved 98.7% operational efficiency, totaling 2,682 productive hours with only 35 hours of non-productive time, while completing the program with zero accidents.

Petro-Victory strategy emphasized extracting additional value from the existing asset base before committing capital to new drilling. More than 20 wells and ESP systems were technically assessed, and the workover campaign successfully validated new reservoir opportunities without drilling additional wells.

Advanced seismic reprocessing and inversion were completed to enhance reservoir characterization and support the identification and prioritization of future opportunities.

Cased hole logging technologies were deployed, including specialized oil saturation tools, to identify bypassed hydrocarbons, improve reservoir characterization and support the selection of workover and production optimization opportunities.

Three wells — LP-38, LP-73 and LP-77D — were successfully validated, supporting the partners' mature-field revitalization thesis. In addition, the Upper Urucutuca was confirmed as a new commercial horizon, expanding the identified development potential of the asset.

Infrastructure, Water Injection and Operational Efficiency

Petro-Victory also implemented a series of engineering and infrastructure initiatives aimed at improving reliability, production capacity and operating efficiency.

Water injection capacity increased approximately 67%, from 12,000 bpd to 20,000 bpd, without additional CAPEX. Integrated reservoir and injection studies were undertaken alongside improvements to the separation, flotation, control valve and fiscal metering systems at Lagoa Parda.

Additional improvements included coalescing filters to enhance produced gas quality, increased generation reliability and energy availability, and optimization of separation and flotation systems.

The operation also migrated to the free energy market, optimized its vehicle fleet, strategically reused existing materials and internalized selected technical analyses, reducing dependence on external services.

Remote monitoring and centralized operational controls were implemented alongside proprietary operational tools, further strengthening the efficiency and scalability of the platform.

Strategic Partnership with Blue Oak Investments

Petro-Victory established its strategic partnership with Blue Oak Investments on January 7, 2025, and Petro-Victory and Blue Oak subsequently executed a Joint Venture Agreement ("JVA") on February 28, 2025.

The partnership combines Petro-Victory's operational and technical capabilities in the Brazilian onshore oil and gas sector with Blue Oak's investment expertise and capital resources, with the objective of acquiring, optimizing and growing high-quality energy assets.

Capixaba Energia is the 100% owner of oil and gas assets in the Espírito Santo Basin, including the Lagoa Parda Cluster, as well as two adjacent exploration blocks.

The results achieved during the first year demonstrate the partners' ability to combine disciplined capital allocation with technical and operational execution to unlock value from mature onshore assets.

A Scalable Model for Mature Onshore Assets

The first year of Capixaba Energia demonstrates a repeatable approach to value creation centered on experienced operatorship, disciplined capital deployment and technical optimization of existing assets.

Production more than doubled while unit production costs declined materially. Additional reservoirs were validated without new drilling, infrastructure capacity was expanded without additional CAPEX and operating cash flow was reinvested into the asset.

The Company believes this combination of experienced operatorship, institutional capital and disciplined execution provides a scalable model for acquiring and revitalizing additional mature onshore oil and gas assets across Brazil and Latin America.

About Petro-Victory Energy Corp.

Petro-Victory Energy Corp. is an oil and gas company engaged in the acquisition, development, and production of crude oil and natural gas in Brazil. The total portfolio under management as of the date of this filing includes 31 concession contracts with 210,583 acres, net to Petro-Victory, plus an additional 4 concessions and 11,413 acres owned jointly with BlueOak in Capixaba Energia. Through disciplined investments in high-impact, low-risk assets, Petro-Victory is focused on delivering sustainable shareholder value. The Company's common shares trade on the TSXV under the ticker symbol VRY.

Cautionary Note

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) 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, 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'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" 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.

Actual results achieved will vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors.

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.

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