Victory Energy Expands Successful Permian Basin Lightnin' Prospect

AUSTIN, Texas, May 28, 2013 /PRNewswire/ -- Victory Energy Corporation (OTCQB: VYEY), an independent, growth-oriented oil and gas company, today announced the acquisition of a 320-acre (gross) lease in Glasscock County, Texas through Aurora Energy Partners ("Aurora"), which the Company manages and in which it owns a 50 percent interest.  The acquired acreage is adjacent to the Company's successful Cotter #1 well which has averaged over 60 gross barrels of oil per day in the month of May.   The first well on this new acreage, the McCauley "6" #1 was spud on May 14 and is expected to be completed and placed on production in late June or early July.

The addition of the 320-acre McCauley track completes a full 640-acre square and provides the Company the opportunity to drill up to 16 gross vertical wells.  Like the successful Cotter #1 well, all of these wells will be targeting the multi-stack Wolfberry trend that is pervasive in this area of the Permian Basin.  The McCauley track was purchased from Pioneer Natural Resources.  The two tracks together are called the Lightnin' Prospect.  The Company holds a 25% working interest and an 18.75% net revenue interest in both properties. 

"With the recent success of the Cotter #1 well at Lightnin', the Company experienced a major increase in revenue and took a major step toward sustainable profitability," said Kenny Hill, Victory Energy CEO. "The addition of this new parcel and the completion of the now underway McCauley "6" #1 well should provide the last step we need to further propel us along the development curve from early-stage uncertainty towards stability and sustainable growth. This acquisition, combined with our current drilling plans on held properties and a significant reduction in our general and administrative expenses heading into the second quarter, represents a quantifiable acceleration in enhancing shareholder value.  I'd like to thank our financial partners, the Navitus Energy Group, as well as Visionary Private Equity Group for their continued support in providing capital for this transaction and the additional capital required for continued growth."

The Lightnin' Prospect, Glasscock County, Texas

With the March 2012 acquisition of the first 320-acre Cotter parcel at Lightnin',  the Company, through its partnership with Aurora Energy Partners, began a new focus on the expansion of high-value, low-risk, multi-well properties within the prolific Permian Basin of west Texas and the adjoining area of southeastern New Mexico.  The May 2013 addition of the McCauley parcel brings the total gross acres held at Lightnin' to 640.

The Lightnin' property is located in the very active resource play known as the Wolfberry, which is composed of the lower Sprayberry, Dean, Wolfcamp, Cline Shale, into the Pennsylvanian.  The first vertical well (Cotter #1) was spud in January 2013, completed in February and brought into production in late March.   The second well (McCauley "6" #1) was spud on May 14 and is expected to be completed and placed on production in late June or early July.  

With the addition of the McCauley track and utilization of 40 acre spacing, the Lightnin' property holds at least sixteen total well locations.  All of these wells undergo a multi-stage frac procedure as part of the completion.  Each well offers an estimated 128,000 gross barrels of oil equivalent (BOE), for an estimated total gross yield of 2,048,000 BOE or 384,000 BOE net to the Company interest.  There were no Proved reserves associated with this property in the Company's reserve report for the period ended December 31, 2012, however we do anticipate at least one of these wells and the corresponding Proved Undeveloped well locations to be included the reserve report for the period ended June 30, 2013. 

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 an independent, growth oriented oil and gas company engaged in the acquisition, exploration and production of oil and natural gas properties through its partnership with Aurora Energy Partners.  The Company's objective is to create long-term shareholder value by increasing oil reserves, improving financial returns (higher production volumes and lower costs), and managing the capital on its balance sheet. 

Victory is geographically focused onshore, with a primary focus in the Permian Basin of Texas and southeast New Mexico.  The Company leverages both internal capabilities and strategic industry relationships to acquire working interest positions in low-to-moderate risk oil and gas prospects. 

Its focus is primarily on oil or liquid-rich gas projects within longer-life reservoirs that offer competitive finding and development (F&D) costs per barrel of oil equivalent (BOE). 

Download the Investor Fact Sheet for current summary of projects and activity.   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.

SOURCE Victory Energy Corporation