Apache Authors: John Mertic, Liz McMillan, Pat Romanski, Elizabeth White, Janakiram MSV

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, 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.

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 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


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
The Open Connectivity Foundation (OCF), sponsor of the IoTivity open source project, and AllSeen Alliance, which provides the AllJoyn® open source IoT framework, today announced that the two organizations’ boards have approved a merger under the OCF name and bylaws. This merger will advance interoperability between connected devices from both groups, enabling the full operating potential of IoT and representing a significant step towards a connected ecosystem.
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
A completely new computing platform is on the horizon. They’re called Microservers by some, ARM Servers by others, and sometimes even ARM-based Servers. No matter what you call them, Microservers will have a huge impact on the data center and on server computing in general. Although few people are familiar with Microservers today, their impact will be felt very soon. This is a new category of computing platform that is available today and is predicted to have triple-digit growth rates for some ...
SYS-CON Events announced today that Roundee / LinearHub will exhibit at the WebRTC Summit at @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. LinearHub provides Roundee Service, a smart platform for enterprise video conferencing with enhanced features such as automatic recording and transcription service. Slack users can integrate Roundee to their team via Slack’s App Directory, and '/roundee' command lets your video conference ...
SYS-CON Events announced today that Enzu will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Enzu’s mission is to be the leading provider of enterprise cloud solutions worldwide. Enzu enables online businesses to use its IT infrastructure to their competitive advantage. By offering a suite of proven hosting and management services, Enzu wants companies to focus on the core of their online busine...
SYS-CON Events announced today that SoftNet Solutions will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. SoftNet Solutions specializes in Enterprise Solutions for Hadoop and Big Data. It offers customers the most open, robust, and value-conscious portfolio of solutions, services, and tools for the shortest route to success with Big Data. The unique differentiator is the ability to architect and...
Why do your mobile transformations need to happen today? Mobile is the strategy that enterprise transformation centers on to drive customer engagement. In his general session at @ThingsExpo, Roger Woods, Director, Mobile Product & Strategy – Adobe Marketing Cloud, covered key IoT and mobile trends that are forcing mobile transformation, key components of a solid mobile strategy and explored how brands are effectively driving mobile change throughout the enterprise.
In past @ThingsExpo presentations, Joseph di Paolantonio has explored how various Internet of Things (IoT) and data management and analytics (DMA) solution spaces will come together as sensor analytics ecosystems. This year, in his session at @ThingsExpo, Joseph di Paolantonio from DataArchon, will be adding the numerous Transportation areas, from autonomous vehicles to “Uber for containers.” While IoT data in any one area of Transportation will have a huge impact in that area, combining senso...
"Matrix is an ambitious open standard and implementation that's set up to break down the fragmentation problems that exist in IP messaging and VoIP communication," explained John Woolf, Technical Evangelist at Matrix, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
@ThingsExpo has been named the Top 5 Most Influential Internet of Things Brand by Onalytica in the ‘The Internet of Things Landscape 2015: Top 100 Individuals and Brands.' Onalytica analyzed Twitter conversations around the #IoT debate to uncover the most influential brands and individuals driving the conversation. Onalytica captured data from 56,224 users. The PageRank based methodology they use to extract influencers on a particular topic (tweets mentioning #InternetofThings or #IoT in this ...
The IoT has the potential to create a renaissance of manufacturing in the US and elsewhere. In his session at 18th Cloud Expo, Florent Solt, CTO and chief architect of Netvibes, discussed how the expected exponential increase in the amount of data that will be processed, transported, stored, and accessed means there will be a huge demand for smart technologies to deliver it. Florent Solt is the CTO and chief architect of Netvibes. Prior to joining Netvibes in 2007, he co-founded Rift Technologi...
For basic one-to-one voice or video calling solutions, WebRTC has proven to be a very powerful technology. Although WebRTC’s core functionality is to provide secure, real-time p2p media streaming, leveraging native platform features and server-side components brings up new communication capabilities for web and native mobile applications, allowing for advanced multi-user use cases such as video broadcasting, conferencing, and media recording.
24Notion is full-service global creative digital marketing, technology and lifestyle agency that combines strategic ideas with customized tactical execution. With a broad understand of the art of traditional marketing, new media, communications and social influence, 24Notion uniquely understands how to connect your brand strategy with the right consumer. 24Notion ranked #12 on Corporate Social Responsibility - Book of List.
Established in 1998, Calsoft is a leading software product engineering Services Company specializing in Storage, Networking, Virtualization and Cloud business verticals. Calsoft provides End-to-End Product Development, Quality Assurance Sustenance, Solution Engineering and Professional Services expertise to assist customers in achieving their product development and business goals. The company's deep domain knowledge of Storage, Virtualization, Networking and Cloud verticals helps in delivering ...
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smar...
@ThingsExpo has been named the Top 5 Most Influential M2M Brand by Onalytica in the ‘Machine to Machine: Top 100 Influencers and Brands.' Onalytica analyzed the online debate on M2M by looking at over 85,000 tweets to provide the most influential individuals and brands that drive the discussion. According to Onalytica the "analysis showed a very engaged community with a lot of interactive tweets. The M2M discussion seems to be more fragmented and driven by some of the major brands present in the...
Cognitive Computing is becoming the foundation for a new generation of solutions that have the potential to transform business. Unlike traditional approaches to building solutions, a cognitive computing approach allows the data to help determine the way applications are designed. This contrasts with conventional software development that begins with defining logic based on the current way a business operates. In her session at 18th Cloud Expo, Judith S. Hurwitz, President and CEO of Hurwitz & ...
In the next five to ten years, millions, if not billions of things will become smarter. This smartness goes beyond connected things in our homes like the fridge, thermostat and fancy lighting, and into heavily regulated industries including aerospace, pharmaceutical/medical devices and energy. “Smartness” will embed itself within individual products that are part of our daily lives. We will engage with smart products - learning from them, informing them, and communicating with them. Smart produc...
In his keynote at 19th Cloud Expo, Sheng Liang, co-founder and CEO of Rancher Labs, will discuss the technological advances and new business opportunities created by the rapid adoption of containers. With the success of Amazon Web Services (AWS) and various open source technologies used to build private clouds, cloud computing has become an essential component of IT strategy. However, users continue to face challenges in implementing clouds, as older technologies evolve and newer ones like Docke...
As ridesharing competitors and enhanced services increase, notable changes are occurring in the transportation model. Despite the cost-effective means and flexibility of ridesharing, both drivers and users will need to be aware of the connected environment and how it will impact the ridesharing experience. In his session at @ThingsExpo, Timothy Evavold, Executive Director Automotive at Covisint, will discuss key challenges and solutions to powering a ride sharing and/or multimodal model in the a...