New Stratus Energy Inc. has announced the signing of a definitive farm-out agreement with Vultur Oil covering two concession contracts in the Recôncavo Basin, an inland oil-producing region in the State of Bahia, Brazil. The agreement outlines the gradual transfer of up to 32.5% working interest from Vultur Oil, the current 100% holder, in the REC-T-107 and REC-T-108 blocks.
An initial $10mn investment in two phases
Under the agreed terms, New Stratus will make an initial investment of $5mn upon deal closing to fund the development of a horizontal well in the existing GREN discovery. A second tranche of $5mn will follow within 180 days after the completion of the first phase to drill new lateral wells from current infrastructure. Vultur will submit the assignment approval request to the Brazilian National Agency of Petroleum, Natural Gas and Biofuels (Agência Nacional do Petróleo, Gás Natural e Biocombustíveis – ANP) to validate the transfer.
Reserves potential and projected revenue
Reserves net to New Stratus’ initial 15% working interest are estimated at 1.42 million barrels of oil equivalent (boe), with a pre-tax net present value at a 10% discount rate of $15.2mn. Upon completion of the second investment phase, the 32.5% interest would correspond to 4.98 million boe in proved and probable reserves, with a projected value of $52mn. These estimates follow the Petroleum Resources Management System (PRMS) guidelines set by the Society of Petroleum Engineers.
Operational history on the blocks
The GREN well was originally drilled in 2019 and was re-entered by Vultur in April 2025. Hydraulic stimulation was performed on the Candeias formation, followed by long-term testing. Before chemical injection, the well produced around 1,000 barrels per day of light crude oil. Commerciality approval is currently pending.
In the REC-T-107 block, the GOP well drilled in 2017 confirmed hydrocarbons in the Agua Grande and Sergi formations. Between February 2018 and September 2019, the well delivered commercial volumes of oil. Modern multi-stage fracking and horizontal drilling techniques are expected to improve recovery rates.
Dispute with Petrobras and gas potential
A unitisation process with Petróleo Brasileiro S.A. (Petrobras) is ongoing regarding potential drainage from the adjacent Araçás field, operated by the state-owned company. Should a settlement occur, net proceeds will be distributed among partners in proportion to their working interest.
In 1956, Petrobras drilled an exploratory well in the southern section of the concession, discovering natural gas. The well was not developed, but neighbouring Biriba concession has since produced over 42 billion cubic feet of gas from the same formations, indicating undeveloped gas potential in the area.
