SOURCE: Victory Energy

Victory Energy

May 16, 2011 14:57 ET

Victory Energy Corporation Completes Its SEC Filings for 2010 With Audited Financial Results

NEWPORT BEACH, CA--(Marketwire - May 16, 2011) - Victory Energy Corporation (PINKSHEETS: VYEY), an oil and gas exploration and development company, today announced that it has filed its 2010 Annual Report on Form 10-K with the Securities and Exchange Commission (SEC). Included in this 10-K filing are audited financial statements for the 2010 fiscal year. The Company also filed its quarterly Forms 10-Q for the periods ended March 31, 2010; June 30, 2010; and September 30, 2010. In addition, the Company filed an extension request with the SEC, requesting until May 23, 2011 to file its quarterly Form 10-Q for the period ended March 31, 2011.

In summary, the Company reported these results for the years ended December 31, 2010 and 2009:

Years Ended December 31:
20102009
Revenues$491,558$512,607
Costs and expenses872,224847,635
Interest expense52,04750,111
Net Loss$(432,713)$(385,139)
Weighted average shares, basic and diluted136,719,608136,719,608
Net loss per share, basic and diluted$(0.00)$(0.00)

Cash and cash equivalents, total current assets, total assets, total current liabilities, and total liabilities as of December 31, 2010 as compared to December 31, 2009, are as follows:

December 31:
20102009
Cash$111,572$22,076
Total current assets211,298169,213
Total assets763,033989,600
Total current liabilities631,1951,259,510
Total liabilities785,8151,294,487

At December 31, 2010, the Company had a working capital deficit of $419.9 thousand, compared to a working capital deficit of $1.1 million at December 31, 2009. Current liabilities decreased to $631.2 thousand at December 31, 2010 from $1.3 million at December 31, 2009, primarily due to a decrease of $404.6 thousand in amounts due to a former officer of the Company and the conversion of $497.0 thousand in notes payable and $55.3 thousand accrued interest, all due to a related party, into a senior convertible debenture.

The Company reported that as of May 16, 2011, it has raised a total of $2.1 million of funds from a private placement memorandum 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; oil and gas well interests 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, "The process of preparing the delinquent SEC filings for 2010 was a long and complex undertaking. We worked closely with our board of directors, legal counsel, independent public accounting firm, and with the Securities and Exchange Commission to bring our financial reporting into compliance through 2010. We remain focused on completing the many tasks at hand, including the preparation of the quarterly Form 10-Q for the quarter ended March 31, 2011, and the continuing process of exploration and development of the various oil and gas properties in which we have invested." Miranda continued, "Now that the financial controls and SEC reporting is up to date, moving the Company forward from an operations perspective will be our focus as our new management team is making excellent progress getting Victory Energy back on track as an efficient and profitable oil and gas exploration and production company."

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