AUSTIN, TX -- (Marketwired) -- 08/01/13 -- Victory Energy Corporation, (Victory Energy) (PINKSHEETS: VYEY), an independent, growth-oriented oil and gas company, today announced that recent successes at its Permian Basin Lightnin' prospect have increased proved reserves by 60 percent and daily production by 89 percent during the first half of this year.
"When we purchased the Lightnin' property in March of 2012, we knew drilling in this area could provide a critical turning point for the company. Drilling the first two wells of several at Lightnin' (Cotter #1 and McCauley #1) have proven our strategy to be successful and we expect the remaining wells to be drilled on the property to also provide a major increase in revenue and a significant step toward sustainable profitability," said Kenny Hill, Victory Energy CEO.
From 2011 to 2012 Victory Energy grew proved reserves by 16 percent, from 118,000 to 137,330 barrels of oil equivalent (BOE), and daily production by 48 percent, from 21.9 to 32.6 BOE. 2013's success in the Permian Basin has accelerated this growth. With the addition of over 83,000 net BOE of proved reserves and 29.4 BOE per day of net new production from Victory Energy's Lightnin' prospect alone, total proved reserves have increased by 60 percent and net daily production by 89 percent since the end of 2012. Oil currently represents forty-one percent of total proved reserves, an improvement from 18 percent at the end of 2012. Current total net proved reserves are estimated at 220,330 BOE, with net daily production of 62 BOE. Victory Energy plans to drill two additional wells at Lightnin' this year and is actively pursuing additional properties with similar characteristics.
About the Lightnin' Prospect, Glasscock County, Texas
With the March 2012 acquisition of the first 320-acre Cotter parcel at Lightnin', Victory Energy, through its partnership with Navitus Energy Group, 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. It is located in the very active resource play known as the Wolfberry, which is composed of the lower Spraberry, 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 in May and placed on production in late June.
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 (PINKSHEETS: 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.
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.
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