08:54 AM EDT, 06/24/2024 (MT Newswires) -- Petro-Victory Energy ( PTVRF ) said on Monday that it signed an option agreement and assignment of interest with Brazil-based Azevedo Travassos Petroleo (ATP).

ATP will fund a work program on the the Andorinha Field and POT-T-281 block, two Petro-Victory-owned concessions located in the Potiguar Basin in Brazil's state of Rio Grande do Norte.

ATP will receive 75% of the net income generated by the wells while Petro-Victory will receive 25% until capital expenditures covered by ATP are fully recovered. Afterwards, the income generated will be split 50/50.

Petro-Victory said the partnership creates potential for growth and new synergies.

The company's share price fell 2.1% on Friday to $1.85.