NEWPORT BEACH, Calif., Sept. 13, 2011 /PRNewswire/ -- Victory Energy Corporation (OTCQB: VYEY), through its partnership with Aurora Energy Partners, is pleased to announce that the Company has increased its interest in the Jones County play effective September 1, 2011. The company will now own a 5.0% Working Interest for all new wells drilled within the 82 square mile (52,480 acres), 3-D Seismic supported prospect area.
This new working interest represents more than a three-fold increase from the original 1.5% held by the company.
Kenny Hill, Victory Energy's COO, stated, "The Jones County play has recently seen a marked improvement in the success rate of wells being drilled in the prospect area. Coupled with an improving production forecast, this interest increase should provide us a bit more revenue upside. Our next two wells are scheduled to spud near the middle of October."
Jones County Background
Victory Energy's working interest in the Jones County oil and gas trend was announced on February 22nd, 2011 as part of a large multi-well, multi-year drilling program with C.O. Energy. The prospective development area covers Jones County, Texas and is supported by eighty two (82) square miles (52,480 acres) of 3-D seismic data.
The operator, C.O. Energy, envisions drilling one to three wells per month until the targeted area is fully developed. Victory Energy maintains a thirty (30) day first right of refusal to participate in each prospect well.
Six wells have been drilled to date of which four wells were successful. The largest well to date (Nassau #1) was completed in August and has an estimated recoverable reserve of 100,000 barrels of oil and a yet to be determined volume of recoverable natural gas.
Typical wells drilled in this area are anticipated to hold 20,000 to 45,000 barrels of recoverable oil.
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 exploitation of oil and gas properties. The company endeavors to utilize its broad range of oil and gas industry relationships to acquire small interests in a large volume of low- to moderate-risk oil and gas prospects. A cornerstone of this strategy is an emphasis on developing and maintaining relationships with proven, well established oil and gas exploration and development companies.
Prospect acquisitions are ideally weighted toward oil, although natural gas projects with high btu content, favorable above-market pricing and modest decline rates will also be targeted. Targeted prospects generally provide the company with a rapid return of capital while offering multiple well locations for additional drilling on an established trend. The model asset portfolio is geologically and geographically diversified. The company's current producing oil and gas assets are located in the United States.
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.
Victory Energy intends to provide periodic updates to the investment community as progress is made across its asset base. These updates may occur via the company web site or via the company "E-News" service. For more information about the company or to subscribe to our email news distribution service, please visit our website http://www.vyey.com.
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
Robert J. Miranda, CEO
Dennard Rupp Gray & Lascar, LLC
Ken Dennard / Ben Burnham
SOURCE Victory Energy Corporation