AUSTIN, Texas, June 11, 2012 /PRNewswire/ -- Victory Energy Corporation (OTCQB: VYEY) today announced that drilling has commenced on the initial well at its recently announced Chapman Ranch prospect located in Nueces County, Texas. The well was spud on June 8th and is currently at a depth of 1,062 feet. Target depth for this well is 8,200 feet and should be reached in approximately two weeks. If successful, a second well will follow.
This 3D seismic controlled prospect targets non-pressured Frio sands (Oligocene). Based on seismic data, evidence from existing nearby wells, and the Company's own internal analysis, Victory estimates that a successful well could contain 224,166 recoverable Barrels of Oil Equivalent (BOE). Initial flow rates of 153 BOPD to 245 BOPD are realistic expectations based on nearby wells.
The operator is Mohican Operating, LLC, who is also a working interest partner in the well. Total drilling and completion costs to the Company's interest are expected to be approximately $78,000 through the first well.
Victory owns a 5% working interest (3.75% NRI) in the prospect.
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 is engaged in the exploration, acquisition, development, and production of domestic oil and gas properties. The company now leverages both internal capabilities and strategic industry relationships to acquire working interest positions in low-to-moderate risk oil and gas prospects. Current assets are held in partnership with Aurora Energy Partners, in which Victory has a 50% ownership interest and is the managing partner.
Future investment will focus primarily on oil or liquid-rich gas projects within longer-life reservoirs that offer lower F&D costs / BOE.
The company had nine wells on production entering FY 2011 and seventeen on production at the end of the calendar year. Acreage held as of March 2012 provides a potential pipeline of 31 additional gross wells that could be drilled. The capital budget for 2012 includes 15 of those 31 wells. The company also has line of sight to incremental projects beyond current acreage.
The company's current producing oil and gas assets are located in the United States. 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.
Victory Energy Corporation
Kenny Hill, CEO
Mark Biggers, CFO
Dennard Rupp Gray & Lascar, LLC
Ken Dennard / Ben Burnham
SOURCE Victory Energy Corporation