Click here to close now.


Apache Authors: Craig Lowell, Jim Scott, Liz McMillan, AppDynamics Blog, Dana Gardner

News Feed Item

Victory Updates Permian Basin Exploration and Development Activities

Three New Wells Underway & Two Others Near Spud

AUSTIN, Texas, Jan. 16, 2013 /PRNewswire/ -- Victory Energy Corporation (OTCQB: VYEY), a growth oriented non-operating oil and gas company, today provided a drilling operations update for Aurora Energy Partners ("Aurora") which the Company manages and in which it owns a 50 percent interest.  Aurora has three new wells (Hickory 14 State #1, University 7 #1, Morgan #1) in various states of completion, a fourth well (Cotter #1) planned to spud within the next week and a fifth well (Milan 12 State #1) on plan to spud in February.  

"This level of activity represents a new high for the Company and a great beginning to the new year," said Kenny Hill, Victory Energy CEO.  "With a favorable estimated ultimate recovery (EUR) and substantial 25 percent working interest, the Cotter #1 well has the potential to generate greater monthly cash flow than any of our previous wells.  The imminent spud of this well and the continued planned development of the Lightnin' property offers the most immediate and strategic path to improve our cash flow and achieve profitability this year."


The Lightnin' Prospect - Acquired in March of 2012, the Lightnin' Prospect, located in Glasscock County, Texas, was the first high-value acquisition of 2012 under our new strategy of acquiring larger working interest positions.  The Company originally acquired a 75% working interest.  In January of 2013 Victory completed a farm-out of a 50 percent working interest to four buyers and selected an operator for the prospect.  The first well (Cotter #1) is planned to spud in January and is expected to be drilled to a total depth of 10,700 feet.  This resource play is also referred to as the Wolfberry Play, which is composed of the lower Spraberry, Dean, Wolfcamp, Cline Shale, Fusselman, into the Pennsylvanian. The 320 acre prospect is surrounded by existing production and some of the nation's largest independent operators. The most active operators in the area are Apache Corporation, Laredo Petroleum, Pioneer Natural Resources, Energen Resources, Endeavor and Nadel and Gussman. 

A third-party reservoir engineer estimates base-case gross EUR per well of 115,140 barrels of oil equivalent (BOE), a mid-case of 175,000 BOE and a high case of 228,000 BOE, assuming an estimated 86 percent of which is oil and 14 percent is natural gas liquids (NGL) and gas.  The acreage held currently provides 40 acre spacing and thus an opportunity to drill a minimum of eight vertical wells on the prospect acreage. Additional opportunities to downsize the spacing to 20 acres and drill up to 16 total wells may be available.  Utilizing an average gross EUR of 175,000 BOE, these eight wells could deliver a total gross EUR of 1,400,000 BOE or the equivalent of $109.1 million in future gross undiscounted cash flow to the 100 percent interest, assuming $86/bbl oil and combined NGL and gas pricing of $5.00/mcf.

Aurora now holds a 25 percent working interest and an 18.75 percent net revenue interest.  Average costs to the 25 percent working interest are anticipated to be approximately $600,000 per well.

The Morgan Prospect - Acquired in December of 2012, this 80 acre property is located in Martin County, Texas.  The first well (Morgan #1) spud on December 5, 2012, has been drilled to a target depth of 10,616 feet, and is now awaiting a multi-stage fracture stimulation which is currently scheduled for late January 2013.  This is a Wolfberry resource play, as is the Lightnin' Prospect, and mud logs from the well bore compare favorably to the producing offset wells nearby.  

A third-party reservoir engineer estimates base-case gross EUR per well of 101,623 BOE (assuming an estimated 84 percent of which is oil, and 16 percent of which is NGL and gas).  The acreage held currently provides 40 acre spacing and thus an opportunity to drill a second vertical well on the prospect acreage.  Utilizing an average gross EUR of 101,623 BOE, these two wells could deliver a total gross EUR of 203,246 BOE or the equivalent of $14.84 million in future gross undiscounted cash flow to the 100 percent interest, assuming $86/bbl oil and combined NGL and gas pricing of $5.00/mcf.

Aurora holds a 3 percent working interest and a 2.25 percent net revenue interest.  Average costs to the 3 percent working interest are anticipated to be approximately $72,000 per well.

The Bootleg Canyon "Tunis Creek" Prospect - Acquired in 2011, this 5,000+ acre lease is located in Pecos County, Texas.  There are now two producing Ellenburger oil wells on this 3D seismic-controlled property.  The third Ellenburger well (University 7 #1) spud on December 23, 2012 and is currently being drilled to a total estimated depth of 7,200 feet.

A third-party reservoir engineer estimates gross EUR per well of 187,240 BOE (assuming an estimated 98 percent oil, 2 percent gas).  The two producing wells and a Proven Undeveloped Well (PUD) location will be included in the Company's 2012 reserve report.   The acreage held currently provides 160 acre spacing and thus an opportunity to drill additional wells on the prospect acreage.  Utilizing an average gross EUR of 187,240 BOE, the three wells could deliver a total gross EUR of 561,720 BOE or the equivalent of $47.3M in future gross undiscounted cash flow to the 100 percent interest, assuming $86/bbl oil and combined NGL and gas pricing of $5/mcf.

Aurora holds a 5 percent working interest and a 3.75 percent net revenue interest.  Average costs to the 5 percent working interest are anticipated to be approximately $78,000 per well.

The Concho Farm-In Prospect - Acquired in November 2012 as part of a farm-in type arrangement with COG Operating, LLC, a Concho Resources Company, this 320 acre non-contiguous property is located Lea County, New Mexico.  A four well drilling program has been proposed by the operator consisting of two test wells and two development wells.  The first test well (Hickory 14 State #1) was spud on November 17, 2012 and has been drilled to a vertical depth of 8,600 feet.  The well has undergone a multi-stage frac completion procedure and is being brought into production. The formation focus for this well is the Yeso and Drinkard (Blinbry).  A second test well (Milan 12 State #1) has been proposed for February spud.

A third-party reservoir engineer estimates base-case gross EUR per well of 101,925 BOE, mid-case of 143,808 and a high case of 187,106 (assuming an estimated 83 percent of which is oil, and 17 percent of which is NGL and gas).  The acreage held provides an opportunity to drill up to four total wells.  Utilizing an average gross EUR of 143,808 BOE, these four wells could deliver a total gross EUR of 575,232 BOE or the equivalent of $41.5 million in future gross undiscounted cash flow to the 100 percent interest, assuming $86/bbl oil and combined NGL and gas pricing $5/mcf.

Aurora has a 1.25 percent carried working interest through drilling, completion and equipping of the two test wells and a right to back-in after payout for an additional 1.25% working interest, giving the Company a total of 2.5 percent working interest and 1.875 percent net revenue interest in the two test wells and the two development wells, if it chooses to participate after completion.   

Our references to estimated ultimate recovery or "EUR" in this press release refers to the estimated unrisked adjusted reserves for a well from proved, probable and possible categories of reserves.

Please note that Victory Energy intends to use its website,, 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.

To subscribe to our email news distribution service, please click the "E-News Sign-Up" link on our website.

About Victory Energy Corporation

Victory Energy Corporation (OTCQB: VYEY) is a growth oriented non-operating oil and gas 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 competitive finding and development costs. The Company's current producing oil and gas assets are located onshore in the Permian Basin of 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

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 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, 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


Investor Relations:


Ken Dennard / Ben Burnham


SOURCE Victory Energy Corporation

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
Scott Guthrie's keynote presentation "Journey to the intelligent cloud" is a must view video. This is from AzureCon 2015, September 29, 2015 I have reproduced some screen shots in case you are unable to view this long video for one reason or another. One of the highlights is 3 datacenters coming on line in India.
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
When it comes to IoT in the enterprise, namely the commercial building and hospitality markets, a benefit not getting the attention it deserves is energy efficiency, and IoT’s direct impact on a cleaner, greener environment when installed in smart buildings. Until now clean technology was offered piecemeal and led with point solutions that require significant systems integration to orchestrate and deploy. There didn't exist a 'top down' approach that can manage and monitor the way a Smart Building actually breathes - immediately flagging overheating in a closet or over cooling in unoccupied ho...
The enterprise is being consumerized, and the consumer is being enterprised. Moore's Law does not matter anymore, the future belongs to business virtualization powered by invisible service architecture, powered by hyperscale and hyperconvergence, and facilitated by vertical streaming and horizontal scaling and consolidation. Both buyers and sellers want instant results, and from paperwork to paperless to mindless is the ultimate goal for any seamless transaction. The sweetest sweet spot in innovation is automation. The most painful pain point for any business is the mismatch between supplies a...
In his session at @ThingsExpo, Tony Shan, Chief Architect at CTS, will explore the synergy of Big Data and IoT. First he will take a closer look at the Internet of Things and Big Data individually, in terms of what, which, why, where, when, who, how and how much. Then he will explore the relationship between IoT and Big Data. Specifically, he will drill down to how the 4Vs aspects intersect with IoT: Volume, Variety, Velocity and Value. In turn, Tony will analyze how the key components of IoT influence Big Data: Device, Connectivity, Context, and Intelligence. He will dive deep to the matrix...
The broad selection of hardware, the rapid evolution of operating systems and the time-to-market for mobile apps has been so rapid that new challenges for developers and engineers arise every day. Security, testing, hosting, and other metrics have to be considered through the process. In his session at Big Data Expo, Walter Maguire, Chief Field Technologist, HP Big Data Group, at Hewlett-Packard, will discuss the challenges faced by developers and a composite Big Data applications builder, focusing on how to help solve the problems that developers are continuously battling.
SYS-CON Events announced today that IBM Cloud Data Services has been named “Bronze Sponsor” of SYS-CON's 17th Cloud Expo, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. IBM Cloud Data Services offers a portfolio of integrated, best-of-breed cloud data services for developers focused on mobile computing and analytics use cases.
Mobile messaging has been a popular communication channel for more than 20 years. Finnish engineer Matti Makkonen invented the idea for SMS (Short Message Service) in 1984, making his vision a reality on December 3, 1992 by sending the first message ("Happy Christmas") from a PC to a cell phone. Since then, the technology has evolved immensely, from both a technology standpoint, and in our everyday uses for it. Originally used for person-to-person (P2P) communication, i.e., Sally sends a text message to Betty – mobile messaging now offers tremendous value to businesses for customer and empl...
SYS-CON Events announced today that ProfitBricks, the provider of painless cloud infrastructure, will exhibit at SYS-CON's 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. ProfitBricks is the IaaS provider that offers a painless cloud experience for all IT users, with no learning curve. ProfitBricks boasts flexible cloud servers and networking, an integrated Data Center Designer tool for visual control over the cloud and the best price/performance value available. ProfitBricks was named one of the coolest Clo...
“The Internet of Things transforms the way organizations leverage machine data and gain insights from it,” noted Splunk’s CTO Snehal Antani, as Splunk announced accelerated momentum in Industrial Data and the IoT. The trend is driven by Splunk’s continued investment in its products and partner ecosystem as well as the creativity of customers and the flexibility to deploy Splunk IoT solutions as software, cloud services or in a hybrid environment. Customers are using Splunk® solutions to collect and correlate data from control systems, sensors, mobile devices and IT systems for a variety of Ind...
Organizations already struggle with the simple collection of data resulting from the proliferation of IoT, lacking the right infrastructure to manage it. They can't only rely on the cloud to collect and utilize this data because many applications still require dedicated infrastructure for security, redundancy, performance, etc. In his session at 17th Cloud Expo, Emil Sayegh, CEO of Codero Hosting, will discuss how in order to resolve the inherent issues, companies need to combine dedicated and cloud solutions through hybrid hosting – a sustainable solution for the data required to manage I...
You have your devices and your data, but what about the rest of your Internet of Things story? Two popular classes of technologies that nicely handle the Big Data analytics for Internet of Things are Apache Hadoop and NoSQL. Hadoop is designed for parallelizing analytical work across many servers and is ideal for the massive data volumes you create with IoT devices. NoSQL databases such as Apache HBase are ideal for storing and retrieving IoT data as “time series data.”
Clearly the way forward is to move to cloud be it bare metal, VMs or containers. One aspect of the current public clouds that is slowing this cloud migration is cloud lock-in. Every cloud vendor is trying to make it very difficult to move out once a customer has chosen their cloud. In his session at 17th Cloud Expo, Naveen Nimmu, CEO of Clouber, Inc., will advocate that making the inter-cloud migration as simple as changing airlines would help the entire industry to quickly adopt the cloud without worrying about any lock-in fears. In fact by having standard APIs for IaaS would help PaaS expl...
As more and more data is generated from a variety of connected devices, the need to get insights from this data and predict future behavior and trends is increasingly essential for businesses. Real-time stream processing is needed in a variety of different industries such as Manufacturing, Oil and Gas, Automobile, Finance, Online Retail, Smart Grids, and Healthcare. Azure Stream Analytics is a fully managed distributed stream computation service that provides low latency, scalable processing of streaming data in the cloud with an enterprise grade SLA. It features built-in integration with Azur...
Apps and devices shouldn't stop working when there's limited or no network connectivity. Learn how to bring data stored in a cloud database to the edge of the network (and back again) whenever an Internet connection is available. In his session at 17th Cloud Expo, Bradley Holt, Developer Advocate at IBM Cloud Data Services, will demonstrate techniques for replicating cloud databases with devices in order to build offline-first mobile or Internet of Things (IoT) apps that can provide a better, faster user experience, both offline and online. The focus of this talk will be on IBM Cloudant, Apa...
As enterprises capture more and more data of all types – structured, semi-structured, and unstructured – data discovery requirements for business intelligence (BI), Big Data, and predictive analytics initiatives grow more complex. A company’s ability to become data-driven and compete on analytics depends on the speed with which it can provision their analytics applications with all relevant information. The task of finding data has traditionally resided with IT, but now organizations increasingly turn towards data source discovery tools to find the right data, in context, for business users, d...
SYS-CON Events announced today that MobiDev, a software development company, will exhibit at the 17th International Cloud Expo®, which will take place November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software development company with representative offices in Atlanta (US), Sheffield (UK) and Würzburg (Germany); and development centers in Ukraine. Since 2009 it has grown from a small group of passionate engineers and business managers to a full-scale mobile software company with over 150 developers, designers, quality assurance engineers, project manage...
Learn how IoT, cloud, social networks and last but not least, humans, can be integrated into a seamless integration of cooperative organisms both cybernetic and biological. This has been enabled by recent advances in IoT device capabilities, messaging frameworks, presence and collaboration services, where devices can share information and make independent and human assisted decisions based upon social status from other entities. In his session at @ThingsExpo, Michael Heydt, founder of Seamless Thingies, will discuss and demonstrate how devices and humans can be integrated from a simple clust...
SYS-CON Events announced today that Cloud Raxak has been named “Media & Session Sponsor” of SYS-CON's 17th Cloud Expo, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Raxak Protect automates security compliance across private and public clouds. Using the SaaS tool or managed service, developers can deploy cloud apps quickly, cost-effectively, and without error.
Who are you? How do you introduce yourself? Do you use a name, or do you greet a friend by the last four digits of his social security number? Assuming you don’t, why are we content to associate our identity with 10 random digits assigned by our phone company? Identity is an issue that affects everyone, but as individuals we don’t spend a lot of time thinking about it. In his session at @ThingsExpo, Ben Klang, Founder & President of Mojo Lingo, will discuss the impact of technology on identity. Should we federate, or not? How should identity be secured? Who owns the identity? How is identity ...