Victory Energy Corporation Sells Its Lightnin' Property
June 9, 2014 - Austin, TX
AUSTIN, TX--(Marketwired - June 09, 2014) - Victory Energy Corporation, (OTCQX: VYEY) ("Victory" or "the Company") a rapidly growing, Permian Basin focused oil and gas company, today announced that it has sold its Permian Basin Lightnin' property in Glasscock County, Texas to an unnamed buyer for $4,080,000. The transaction closed on June 5, 2014.
Victory's 20% working interest and 15% net revenue interest in the Lightnin' property was acquired through a March 2012 transaction with the operator, Hannathon Petroleum. The first of four wells was drilled on the property in late 2012. The most successful of the four wells (Cotter 6 #2) was brought into production in March of 2014. All four vertical wells targeted the Spraberry trend, with a focus on the stacked Wolfcamp, Strawn, Fusselman and Cline formations. Daily net production to the company interest was approximately 36 BOE at the time of the sale. The Lightnin' property generated a 63% Internal Rate of Return ("IRR") for the 25 month period the Company held the property.
"As part of our 2012 shift in focus toward the Permian Basin of Texas and southeast New Mexico, our acquisition of the 640 acre Lightnin' property represented a new beginning for the company. Its larger non-operated working interest and multi-well development program provided a solid platform to demonstrate the solid returns available to our shareholders. As we grow, we will acquire bigger versions of this property that offer significantly more upside development opportunity. We are selling the Lightnin' property to focus on larger more strategic projects that are available in the basin. Our recent acquisition announcement of the 4,650 gross acre Fairway project is just one example of upsizing our growth via more production and significantly more development drilling," explained Kenny Hill, CEO of Victory Energy Corporation. "This sale and our pending Fairway acquisition are consistent with our overarching strategy to deploy our capital to longer-life, high quality prospects with a higher mix of oil and liquids. The 63% IRR demonstrates our ability to deliver exceptional returns for our investors."
About Victory Energy
Victory Energy Corporation (OTCQX: VYEY) is an independent, oil and gas exploration and production company with a focus in the Permian Basin. Based in Austin, Texas, with additional resources located in Midland, Texas, Victory currently holds interests in high profile targets such as the Wolfcamp, Mississippian and Fusselman plays. Victory utilizes sustainable low-risk vertical well development on existing properties and new acquisitions which offer repeatable and highly profitable results; and achieves these results by targeting predictable resources plays, favorable operating environments and consistent reservoir quality across multiple target horizons with long-lived reserve characteristics. For additional information on the company, please visit www.vyey.com.
Safe Harbor Statement
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, 2013 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.