AUSTIN, Texas--(BUSINESS WIRE)--Victory Energy Corporation, (Victory Energy) (OTCQB: VYEY), a publicly held, independent, growth-oriented oil and gas company, today provided its first operations update since becoming current on its financials and announcing its $36 million funding relationship with Navitus Energy Group and Texas Capital Bank of Dallas, Texas.
Since January 2014, the company has completed two wells and is readying a third for completion.
One new Permian Basin well (McCauley 6 #2) is now on production and has averaged 52 barrels of oil and 58 Mcf of liquids rich gas per day since December 12, 2013. A second Permian well (Cotter 6 #2) has reached target depth with significant shows in the Fusselman, Mississippian and through the Wolfcamp formations. The Cotter well is now being readied for a multi-stage frac completion. Both of these vertical wells are located at the company’s “Lightnin” property in Glasscock County Texas. Prior vertical wells drilled by the company in this field have each averaged estimated ultimate recovery rates of approximately 100,000 Barrels of Oil Equivalent (BOE). Additional wells remain to be drilled. The company has a 20% working interest and an 18.75% net revenue interest in these wells.
Furthermore, the company has drilled and completed its first successful well at its South Texas, Chapman Ranch property. This Nueces County, Texas well spud on December 22, 2013 and reached total depth of 7,800 feet on January 7, 2014. The well was perforated in several sections and was successfully flow tested from the Frio Sands on January 21, 2014 at 67 barrels of oil and 10 Mcf of dry gas per day. The well will be put on production after the installation of storage tanks and other surface equipment is completed. The company acquired this prospect in early 2012 before shifting its focus to the Permian. The company has a 5% working interest and a 3.75% net revenue interest in this well.
All three of these wells will be included in the August of 2014, mid-year reserve report provided by the company. Additional wells that are drilled, completed or acquired prior to that filing will also be included.
“The Permian continues to be a winner for the company. Since entering that prolific area in March of 2012, the company has successfully drilled and completed every well it has attempted there. With the addition of our new $26.4 million credit facility, we will be able to scale that success in a very big way. In addition, the company is currently reviewing opportunities to acquire a significant amount of proved and producing (cash-flow) reserves in the Permian. This combination of successful wells on held properties and the additional proved producing reserves gained through acquisitions, will very quickly improve our balance sheet and accelerate our plan to rapidly grow the company and enhance shareholder value” said Kenny Hill, CEO of Victory.
Victory is headquartered in Austin, Texas, with additional technical and specialized resources located in Midland, Texas.
Additional information about the company, including investor presentations, current asset highlights and an in depth oil and gas learning center can be found on their web site at http://www.vyey.com.
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 publicly held, independent, growth-oriented exploration and production company, headquartered in Austin, Texas, with additional technical and specialized resources located in Midland, Texas. The company is focused on creating shareholder value by rapidly growing unconventional oil, liquids-rich natural gas reserves and cash-flow via continued low-risk vertical well development on existing properties through the acquisition of new resource properties, offering better that 20% rates of return (ROR) and break-even points below $65 per barrel oil price.
This focus on returns is achieved by targeting the predictable resources plays, favorable operating environment, consistent reservoir quality across multiple target horizons, long-lived reserve characteristics, and high drilling success rates of the Permian Basin of Texas and southeast New Mexico. The company plans to utilize its recently acquired $26 million credit facility and access to $10 million of private placement capital from its partner Navitus Energy Group, to aggressively grow the companies Permian assets through targeted acquisitions of producing properties with upside development potential.
The company strategically utilizes both internal capabilities and strategic industry relationships to acquire non-operated, high-grade working interest positions in predictable, low-to-moderate risk oil and gas prospects. Over the next 18 months, the company anticipates the addition of operating resources and technical capabilities required to manage the anticipated acquisitions in the business plan.
Victory Energy has carefully assembled a management team with more than 117 years of direct and relevant oil and gas experience. The company also utilizes a team of third-party professionals on an as-needed basis. This team includes geologists for prospect evaluation and assessment and reservoir engineering resources for the analysis of current and new properties. Reserve reporting is performed by a third-party engineer located in Midland, Texas. Each independent operator utilized by the company also has their own array of experts tailored for the specific formations and well completion techniques of each property the company holds an interest in.
Victory Energy is a SEC current reporting company. The Company is traded under the ticker symbol VYEY on the OTCQB tier, operated by OTC Markets Group (The Venture Stage Marketplace with Reporting Companies).
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on certain assumptions made by the Company based on management’s experience, perception of historical trends and technical analyses, current conditions, anticipated future developments and other factors believed to be appropriate and reasonable by management. When used in this press release, the words “will,” “potential,” “believe,” “estimated,” “intend,” “expect,” “may,” “should,” “anticipate,” “could,” “plan,” “project,” or their negatives, other similar expressions or the statements that include those words, are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Among these forward-looking statements are statements regarding EURs, estimated BOE, estimated future gross undiscounted cash flow and estimated drilling and completion costs. Such forward-looking statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements, including but not limited to, changes to drilling plans and schedules by the operators of prospects, overruns in costs of operations, hazards, delays, and any other difficulties related to drilling for and producing oil or gas, the price of oil, NGLs, and gas, results of marketing and sales of produced oil and gas, estimates made in evaluating reserves, competition, general economic conditions and the ability to manage and continue growth, and other factors described in the Company Annual Report on Form 10-K/A for the fiscal year ended December 31, 2011, December 31, 2012 and any updates to those risk factors set forth in the Company’s Quarterly Reports on Form 10-Q. Further information on such assumptions, risks and uncertainties is available in the Company’s other filings with the Securities and Exchange Commission (“SEC”) that are available on the SEC’s website at www.sec.gov, and on the Company’s website. Any forward-looking statement speaks only as of the date on which such statement is made and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.
Victory Energy Corporation
Kenny Hill, CEO
Roepke Public Relations