SOURCE: Victory Energy Corporation

March 24, 2011 10:00 ET

Victory Energy Corporation Announces Additional Acreage Acquired at Jones County Oil and Gas Play

NEWPORT BEACH, CA--(Marketwire - March 24, 2011) - Victory Energy Corporation (PINKSHEETS: VYEY), through its partnership with Aurora Energy Partners, today announced that an additional 489 acre development unit ("The New Hope Unit") has been acquired at its rapidly expanding Jones County oil and gas play. This additional development unit represents the third acquisition since the company announced its participation on February 22, 2011.

Robert Miranda, Victory Energy's chairman and interim CEO, stated, "We are very pleased with the quality of work and 3-D seismic supported locations that are being provided by the operator and we look forward to a continued expansion of the project. This unit and the two previously announced development units have provided the company with two successful oil and gas wells in less than forty-five days. We look forward to the continued success." 

Jones County Oil Trend Holdings

Unit Name   Wells Envisioned   Wells Completed   WI   NRI
Young   Four (4)   One (1)   2.5%   1.875%
White   Two (2)   One (1)   1.5%   1.180%
New Hope   Ten (10)   Zero (0)   1.5%   1.228%

The New Hope unit holds a recently drilled test well that targeted the Swastika sand. This formation produced over 500,000 barrels of oil from the nearby Glenn Thomas Field. The New Hope #1 test well was drilled to target depth on March 14th and encountered 30' of highly porous Swastika sand. It's now believed that additional target sands are available, therefore, the company has begun a seismic data reprocessing project to aid in more precisely pinpointing additional drilling locations in all three units.

About the Jones County Oil Trend
The Jones County oil trend is part of an agreement entered into on February 22, 2011 with C.O. Energy, LLC and Marshall R. Young Oil Co. The prospective development area covers Jones County, Texas and is supported by eighty two (82) square miles of 3-D seismic data. The operator, C.O. Energy, envisions drilling one to two 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 development well. 

About Victory Energy Corporation
Victory Energy Corporation is engaged in the exploration, acquisition, development, and exploitation of oil and gas properties. The company's current producing assets are located in the state of Texas. Victory Energy seeks to identify proven development prospects, conduct thorough geological and engineering evaluations and then target suitable farm-in partners for long term development of additional prospects.

For more information, please visit our website www.victoryenergyoilandgas.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.

Contact Information

  • CONTACT:
    Robert J. Miranda
    Chairman and Interim Chief Executive Officer
    714.480.0305

    Investor Relations
    714.227.0391