SOURCE: Victory Energy

Victory Energy

May 23, 2011 18:09 ET

Victory Energy Corporation Completes Its First Quarterly SEC Filing for 2011

NEWPORT BEACH, CA--(Marketwire - May 23, 2011) - Victory Energy Corporation (PINKSHEETS: VYEY), an oil and gas exploration and development company, today announced that it has filed its first quarterly report for 2011 on Form 10-Q with the Securities and Exchange Commission (SEC). Included in this 10-Q filing are unaudited financial statements for the three month period ended March 31, 2011.

In summary, the Company reported these results for the quarters ended March 31, 2011 and 2010:

                                                  Quarters Ended March 31:
                                                  ------------------------
                                                      2011         2010
                                                  -----------  ------------
Revenues                                          $   108,320  $    149,371
Costs and expenses                                    769,790       195,293
Interest expense                                      213,112         8,252
Gain on settlement with former officer                     __       404,623
Income tax benefit                                     58,105            __
                                                  -----------  ------------
Net Income (Loss)                                 $  (816,477) $    350,449
                                                  ===========  ============
Weighted average shares, basic and diluted        136,719,608   136,719,608
                                                  ===========  ============
Net loss per share, basic and diluted             $     (0.01) $       0.00
                                                  ===========  ============

Our cash and cash equivalents, total current assets, total assets, total current liabilities, and total liabilities as of March 31, 2011, as compared to December 31, 2010, are as follows:

                                                   March 31,   December 31,
                                                      2011         2010
                                                  ------------ ------------
Cash                                              $    187,494 $    111,572
Total current assets                                   280,806      211,298
Total assets                                         1,034,207      763,033

Total current liabilities                              677,905      631,195
Total liabilities                                    1,492,161      785,815

At March 31, 2011, we had a working capital deficit of $397.0 thousand compared to a working capital deficit of $712.2 thousand at March 31, 2010. Current liabilities decreased to $677.9 thousand at March 31, 2011, from $894.9 thousand at March 31, 2010.

The Company reported that as of May 16, 2011, it has raised a total of $2.1 million of funds from a private placement of 10% senior secured convertible debentures. The Company also reported that it has invested in new oil & gas projects including an option on a major gas project on South Padre Island, Texas; an oil exploration project in Jones County, Texas; an oil and gas well interest in Pecos County, Texas; and a natural gas well interest in Wharton County, Texas.

Robert J. Miranda, Victory Energy's chairman, chief executive officer and chief financial officer, stated, "We are pleased to have completed the Company's first quarterly filing for 2011 with the SEC and are now current in all of our SEC filings. Our management team is now focused on the continuing process of exploration and development of the various oil and gas properties in which we have invested and identifying new opportunities."

About Victory Energy Corporation

Victory Energy Corporation is engaged in the exploration, acquisition, development, and exploitation of oil and gas properties. The company endeavors to utilize its broad range of oil and gas industry relationships to acquire small interests in a large volume of low- to moderate-risk oil and gas prospects. A cornerstone of this strategy is an emphasis on developing and maintaining relationships with proven, well established oil and gas exploration and development companies.

Prospect acquisitions are ideally weighted toward oil, although natural gas projects with high BTU content, favorable above market pricing and modest decline rates will also be targeted. Targeted prospects generally provide the company with a rapid return of capital while offering multiple well locations for additional drilling on an established trend. The model asset portfolio is geologically and geographically diversified. The company's current producing oil and gas assets are located in the United States.

For more information, please visit our website http://www.vyey.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 Chief Executive Officer
    714.480.0305

    Investor Relations
    714.227.0391