Victory Provides Drilling Operations Update
AUSTIN, Texas, June 28, 2012 /PRNewswire/ – Victory Energy Corporation (OTCQB: VYEY), today provided a drilling operations update on two of its most recent acquisitions. The Company has one well currently being completed and one well that spud on June 24th.
Kenny Hill, Victory Energy’s CEO, stated, “The Company now holds 10,859 gross acres with the potential to drill an estimated 45 gross wells. So far this year, we have acquired four prospects totaling 2,196 gross acres with the potential to add over 475,000 barrels of oil equivalent (BOE) to the Company’s future production. We are excited to begin drilling operations on two of those prospects (Chapman Ranch and Pinetop), and we look forward to beginning operations at our marquee Lightnin’ prospect in August/September. Operations continue at Bootleg Canyon and Uno Mas.”
Chapman Ranch (announced April 3rd 2012) – the first of two planned wells at this Nueces County, Texas prospect has been successfully drilled to a depth 8,010 feet, and triple combo logs have been run. Targeted multiple pay zones are present in the logs. Core samples have also been taken and analyzed. The operator has begun completion operations to test for commercial flows. With success, this well will be moved into production and a second well will drilled. Victory owns a 5% working interest (3.75% NRI) in the prospect.
Pinetop Prospect (announced June 13th 2012) – the first test well was spud on June 24th at this Lea County, New Mexico prospect. Drilling to the 11,700′ target depth is anticipated to take approximately four weeks to complete. If the initial test well is successful, the potential exists for eight additional wells (gross) to be drilled on the acreage. Victory estimates that a successful well in this prospect has recoverable reserve potential of approximately 420,000 BOE and a potential IP rate of about 330 BOE per day (approximately 86% oil, 14% natural gas) to the 100% working interest. Victory acquired a 4% Before Payout (BPO) working interest at a 2.94% net revenue interest, and a 3% After Payout (APO) working interest at a 2.205% net revenue interest, in the initial well to be drilled in the prospect, with subsequent wells drilled at the APO working interest.
Please note that Victory Energy intends to use its website, www.vyey.com, as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD. Such disclosures will be included on the Victory Energy website in the “Investor Relations” section. Accordingly, investors should monitor such portions of the Victory Energy website in addition to following press releases, SEC filings and public conference calls and webcasts.
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About Victory Energy Corporation
Victory Energy Corporation (OTCQB: VYEY) is a non-operating company engaged in the exploration, acquisition, development, and production of domestic oil and gas properties. Victory leverages both internal capabilities and strategic industry relationships to acquire working interest positions in low-to-moderate risk oil and gas prospects.
Future investment will focus primarily on oil or liquid-rich gas projects within longer-life reservoirs that offer lower F&D costs.
The Company had seventeen wells on production at the end of the calendar year 2011 and has an estimated forty-five (45) additional gross wells available to pursue on its currently held ten-thousand eight hundred and fifty-nine (10,859) acres.
Victory through its partnership with Aurora Energy Partners has acquired four prospects this year totaling 2,196 gross acres with the potential to add over 475,000 barrels of oil equivalent (BOE) to the company’s future cash flows. The company’s current producing oil and gas assets are located onshore in Texas, and New Mexico.
The Company’s objective is to create long term shareholder value by increasing oil reserves, improving financial returns (higher production volumes, lower costs), and managing the capital on our balance sheet.
Download the investor fact sheet for current summary of projects and activity. Victory Energy is current with its SEC filings and is a full reporting company. The Company is traded under the ticker symbol VYEY on the OTCQB tier, operated by OTC Markets Group.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
There are forward-looking statements contained in this news release. They use such words as “intend,” “will,” “may,” “expect,” “believe,” “plan,” or other similar terminology. These statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results to be materially different than those expressed or implied in such statements. These factors include, but are not limited to: risks associated with the implementation of the Company’s strategic growth plan; legislation and government regulation including the ability to obtain satisfactory regulatory approvals; conditions beyond the Company’s control such as weather, natural disasters, disease outbreaks, epidemics or pandemics impacting the Company’s customer base or acts of war or terrorism; availability and cost of materials and labor; demand for natural gas; cost and availability of capital; competition; the Company’s overall marketing, operational and financial performance; economic and political conditions; the continued service of the Company’s executive officer; adverse developments in and increased or unforeseen legal costs related to the Company’s litigation; the success of the Company’s strategic partnerships and joint venture relationships; the Company’s ability to pay certain debts; adoption of new, or changes in, accounting policies and practices; adverse court rulings; results of other litigation in which the Company is involved; and other factors discussed from time to time in the Company’s news releases, public statements and/or filings with the Securities and Exchange Commission. Forward-looking information is provided by Victory Energy Corporation pursuant to the safe harbor established under the Private Securities Litigation Reform Act of 1995 and should be evaluated in the context of these factors. In addition, the Company disclaims any intent or obligation to update these forward-looking statements.
CONTACTS: Victory Energy Corporation Kenny Hill, CEO Mark Biggers, CFO 512-347-7300 Investor Relations: Dennard Rupp Gray & Lascar, LLC Ken Dennard / Ben Burnham 713-529-6600
SOURCE Victory Energy Corporation