Victory Energy Announces Chapman Prospect

AUSTIN, Texas, April 3, 2012 /PRNewswire/ -- Victory Energy Corporation (OTCQB: VYEY)  through its partnership with Aurora Energy Partners, today announced the addition of the Chapman prospect to the company's rapidly growing portfolio of new exploration projects.  This 3D seismic controlled prospect targets non-pressured Frio sands (Oligocene) in the Chapman Ranch Field located in Nueces County, Texas approximately 12 miles south of Corpus Christi.  The first well is scheduled for drilling in late April 2012 and with success a second well will be drilled shortly thereafter. 

Kenny Hill, Victory Energy's CEO, stated, "The Chapman Ranch prospect has a compelling geologic profile supported by 3D seismic data.  Furthermore, our prospect is updip from multiple producing wells which had initial flow rates between 150 and 250 barrels of oil per day.  Based on the seismic data, evidence from existing wells, and our own internal analysis, we estimate that a successful well on this 240 acre prospect could contain 180,000 barrels of recoverable oil and 265 million cubic feet of natural gas."

The operator will be 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 acquired 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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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.

SOURCE Victory Energy Corporation