|By PR Newswire||
|January 16, 2013 07:00 AM EST||
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."
ABOUT THE PROPERTIES
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
Ken Dennard / Ben Burnham
SOURCE Victory Energy Corporation
SYS-CON Events announced today that Outlyer, a monitoring service for DevOps and operations teams, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Outlyer is a monitoring service for DevOps and Operations teams running Cloud, SaaS, Microservices and IoT deployments. Designed for today's dynamic environments that need beyond cloud-scale monitoring, we make monitoring effortless so you ...
Mar. 27, 2017 02:15 AM EDT Reads: 4,131
My team embarked on building a data lake for our sales and marketing data to better understand customer journeys. This required building a hybrid data pipeline to connect our cloud CRM with the new Hadoop Data Lake. One challenge is that IT was not in a position to provide support until we proved value and marketing did not have the experience, so we embarked on the journey ourselves within the product marketing team for our line of business within Progress. In his session at @BigDataExpo, Sum...
Mar. 27, 2017 01:45 AM EDT Reads: 2,875
Keeping pace with advancements in software delivery processes and tooling is taxing even for the most proficient organizations. Point tools, platforms, open source and the increasing adoption of private and public cloud services requires strong engineering rigor - all in the face of developer demands to use the tools of choice. As Agile has settled in as a mainstream practice, now DevOps has emerged as the next wave to improve software delivery speed and output. To make DevOps work, organization...
Mar. 27, 2017 01:15 AM EDT Reads: 1,809
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm.
Mar. 27, 2017 12:45 AM EDT Reads: 2,001
What sort of WebRTC based applications can we expect to see over the next year and beyond? One way to predict development trends is to see what sorts of applications startups are building. In his session at @ThingsExpo, Arin Sime, founder of WebRTC.ventures, will discuss the current and likely future trends in WebRTC application development based on real requests for custom applications from real customers, as well as other public sources of information,
Mar. 27, 2017 12:30 AM EDT Reads: 822
China Unicom exhibit at the 19th International Cloud Expo, which took place at the Santa Clara Convention Center in Santa Clara, CA, in November 2016. China United Network Communications Group Co. Ltd ("China Unicom") was officially established in 2009 on the basis of the merger of former China Netcom and former China Unicom. China Unicom mainly operates a full range of telecommunications services including mobile broadband (GSM, WCDMA, LTE FDD, TD-LTE), fixed-line broadband, ICT, data communica...
Mar. 27, 2017 12:00 AM EDT Reads: 3,321
With the introduction of IoT and Smart Living in every aspect of our lives, one question has become relevant: What are the security implications? To answer this, first we have to look and explore the security models of the technologies that IoT is founded upon. In his session at @ThingsExpo, Nevi Kaja, a Research Engineer at Ford Motor Company, will discuss some of the security challenges of the IoT infrastructure and relate how these aspects impact Smart Living. The material will be delivered i...
Mar. 26, 2017 09:45 PM EDT Reads: 2,038
Apache Hadoop is emerging as a distributed platform for handling large and fast incoming streams of data. Predictive maintenance, supply chain optimization, and Internet-of-Things analysis are examples where Hadoop provides the scalable storage, processing, and analytics platform to gain meaningful insights from granular data that is typically only valuable from a large-scale, aggregate view. One architecture useful for capturing and analyzing streaming data is the Lambda Architecture, represent...
Mar. 26, 2017 08:30 PM EDT Reads: 6,116
As organizations realize the scope of the Internet of Things, gaining key insights from Big Data, through the use of advanced analytics, becomes crucial. However, IoT also creates the need for petabyte scale storage of data from millions of devices. A new type of Storage is required which seamlessly integrates robust data analytics with massive scale. These storage systems will act as “smart systems” provide in-place analytics that speed discovery and enable businesses to quickly derive meaningf...
Mar. 26, 2017 07:45 PM EDT Reads: 9,586
Your homes and cars can be automated and self-serviced. Why can't your storage? From simply asking questions to analyze and troubleshoot your infrastructure, to provisioning storage with snapshots, recovery and replication, your wildest sci-fi dream has come true. In his session at @DevOpsSummit at 20th Cloud Expo, Dan Florea, Director of Product Management at Tintri, will provide a ChatOps demo where you can talk to your storage and manage it from anywhere, through Slack and similar services ...
Mar. 26, 2017 06:45 PM EDT Reads: 4,263
SYS-CON Events announced today that Ocean9will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Ocean9 provides cloud services for Backup, Disaster Recovery (DRaaS) and instant Innovation, and redefines enterprise infrastructure with its cloud native subscription offerings for mission critical SAP workloads.
Mar. 26, 2017 06:30 PM EDT Reads: 2,049
The taxi industry never saw Uber coming. Startups are a threat to incumbents like never before, and a major enabler for startups is that they are instantly “cloud ready.” If innovation moves at the pace of IT, then your company is in trouble. Why? Because your data center will not keep up with frenetic pace AWS, Microsoft and Google are rolling out new capabilities In his session at 20th Cloud Expo, Don Browning, VP of Cloud Architecture at Turner, will posit that disruption is inevitable for c...
Mar. 26, 2017 05:00 PM EDT Reads: 2,141
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
Mar. 26, 2017 02:30 PM EDT Reads: 1,784
SYS-CON Events announced today that Conference Guru has been named “Media Sponsor” of SYS-CON's 20th International Cloud Expo, which will take place on June 6–8, 2017, at the Javits Center in New York City, NY. A valuable conference experience generates new contacts, sales leads, potential strategic partners and potential investors; helps gather competitive intelligence and even provides inspiration for new products and services. Conference Guru works with conference organizers to pass great dea...
Mar. 26, 2017 02:15 PM EDT Reads: 4,380
SYS-CON Events announced today that Technologic Systems Inc., an embedded systems solutions company, will exhibit at SYS-CON's @ThingsExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Technologic Systems is an embedded systems company with headquarters in Fountain Hills, Arizona. They have been in business for 32 years, helping more than 8,000 OEM customers and building over a hundred COTS products that have never been discontinued. Technologic Systems’ pr...
Mar. 26, 2017 02:00 PM EDT Reads: 3,390
SYS-CON Events announced today that CA Technologies has been named “Platinum Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business – from apparel to energy – is being rewritten by software. From ...
Mar. 26, 2017 01:45 PM EDT Reads: 1,842
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend @CloudExpo | @ThingsExpo, June 6-8, 2017, at the Javits Center in New York City, NY and October 31 - November 2, 2017, Santa Clara Convention Center, CA. Learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
Mar. 26, 2017 01:45 PM EDT Reads: 8,511
SYS-CON Events announced today that Telecom Reseller has been named “Media Sponsor” of SYS-CON's 20th International Cloud Expo, which will take place on June 6–8, 2017, at the Javits Center in New York City, NY. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
Mar. 26, 2017 01:15 PM EDT Reads: 2,128
SYS-CON Events announced today that Loom Systems will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Founded in 2015, Loom Systems delivers an advanced AI solution to predict and prevent problems in the digital business. Loom stands alone in the industry as an AI analysis platform requiring no prior math knowledge from operators, leveraging the existing staff to succeed in the digital era. With offices in S...
Mar. 26, 2017 12:45 PM EDT Reads: 1,324
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 20th Cloud Expo, which will take place on June 6-8, 2017 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 add...
Mar. 26, 2017 12:30 PM EDT Reads: 1,137