SOURCE: Victory Energy Corporation

March 20, 2007 09:00 ET

Victory Energy Corporation Announces Option Agreement

LOS ANGELES, CA -- (MARKET WIRE) -- March 20, 2007 -- Victory Energy Corporation (OTCBB: VYEY) announced today that it has acquired an option to purchase a carried interest in the Wanner 27-1, a well to be drilled as a Lodgepole Reef Prospect near Dickinson, North Dakota. Additional terms provide for a further option to acquire another four similar prospects in the immediate area.

This development site, the Wanner 27-1, will be drilled to test a Lodgepole Reef formation identified as commercially highly probable through photogeology and geochemistry testing conducted by Oil For America. The well is located in the northwest quarter of the northeast quarter of Section 27, Township 139 North, Range 95 West, about 5 miles east of Dickinson, North Dakota. The Wanner 27-1 well is anticipated to be drilled later this month and to be completed by the end of April 2007.

"This option gives Victory Energy the opportunity for immediate participation in the drilling of the Lodgepole Reef Play in North Dakota, providing Victory Energy the opportunity for significant upside potential while minimizing downside risk," stated Jon Fullenkamp, President of Victory Energy Corporation.

Lodgepole Reef wells in the Dickinson, North Dakota area have produced as much as 4,000,000 barrels of oil and 2 billion cubic feet of natural gas, some with initial production rates over 2,000 barrels per day. If the well is successful, Victory Energy has the option to purchase a share of Oil For America's production at 50% of the value of such production. Victory Energy also has the option to acquire four additional Lodgepole Reef prospects in the area identified and high graded by Oil For America.

About Victory Energy Corporation: Victory Energy Corporation (http://www.victoryenergyoilandgas.com) is a publicly traded, developmental stage petroleum company primarily dedicated to energy-related opportunities. The Company goal is to evaluate profitable options, develop a solid foundation through leadership and sound business acumen, and acquire producing wells as well as other potentially profitable prospects within the Oil & Gas Industry.

Certain statements contained herein are "forward-looking" statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). Because such statements include risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to, those discussed in filings made by the Company with the Securities and Exchange Commission. The Company's filings may be accessed at the SEC's EDGAR system at www.sec.gov. Statements made herein are as of the date of this press release and should not be relied upon as of any subsequent date. The Company cautions readers not to place reliance on such statements.

Contact Information

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    Victory Energy Corporation
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