SOURCE: Victory Energy

Victory Energy

June 16, 2011 10:30 ET

Victory Energy Provides Exploration and Development Update

NEWPORT BEACH, CA--(Marketwire - Jun 16, 2011) - Victory Energy Corporation (PINKSHEETS: VYEY), through its partnership with Aurora Energy Partners, is pleased to provide a market update for the company's exploration and development projects. Further detail for each of these projects can be found on the company website at

The Tunis Creek Oil and Gas Prospect

General Description - Located in Pecos County, Texas; oil focused; target depth of 7,500 feet; target formations: Wichita Albany, Wolfcamp and Ellenburger; up dip of a previously producing well (20,000 barrels of oil); well spud date of April 22, 2011; now in completion with 91 feet of possible oil and gas pay present. The company owns a 5 percent working interest and a 3.75 percent net revenue interest.

Current Status - The work-over rig and crew are scheduled to arrive next week. The possible pay located in the Ellenburger formation will be perforated and a completion attempt will be made by the operator.

The Jones County Oil Play

General Description - Located in Jones County, Texas; oil focused; 82 square miles of 3-D seismic supported drilling; three wells are completed; two wells are on production; entire development area supported by 3-D seismic imaging; multi-year drilling program underway. The company holds a working interest of no less than 1.5 percent and up to 2.5 percent for each acreage block acquired.

Current Status - A fourth well, White #2, was spud on June 11, 2011 and has now reached a depth of 2,555 feet. The proposed target depth is 5,325 feet. Upon completion of the White #2, the Harbour #1 and the South Providence #1 prospects are scheduled to be drilled and completed sequentially. Additional 3-D seismic supported prospect locations have been identified for consideration.

The Alwan West 8.75 BCF Potential Gas Prospect

General Description - Located in Wharton County, Texas; natural gas focused; target depth of 7,100 feet; target formations: Frio, Yegua; reserve potential of 8.75 billion cubic feet (BCF) of natural gas. The company owns a 5 percent working interest and a 3.8 percent net revenue interest.

Current Status - Due to rig availability, this prospect's spud date has been revised to the beginning of July 2011.

The Atwood Project (Secondary Waterflood)

General Description - Located in Hughes County, Oklahoma; oil focused; secondary oil recovery via a waterflood; past production of 527,000 barrels of oil; 500,000 barrels of oil recovery probable; 800,000 barrels of oil recovery possible; 1,200 acres with 31 wells having a typical depth of 3,200 feet; target formation: Booch. The company owns a 2 percent working interest and a 1.58 percent net revenue interest in this project.

Current Status - This project was announced on June 6, 2011 and remains on schedule. The waterflood program has been approved by the Oklahoma Corporation Commission and is anticipated to begin in the next 90 days. The operations team is both local and experienced.

The Adams-Baggett Canyon Sandstone Gas Field

General Description - Located in Crockett County, Texas; natural gas focused; nine producing gas wells with an average 25 percent BTU premium price to market. The company received its first production revenue from this field in March 2008 and continues to receive income today.

Current Status - Additional development opportunities are currently being evaluated.

The Padre Island Gas Field

General Description - Located approximately 15 miles north of Port Isabel, Texas; natural gas focused; three wellbores are currently shut-in and are being re-evaluated for activation. A successful completion of the previously producing sand could have potential of 2 BCF proved undeveloped reserves (PUD) of natural gas. Under an option agreement, the company will have the right to acquire a 100 percent working interest and 75 percent net revenue interest in this project.

Current Status - Continuing to be evaluated.

Robert Miranda, Victory Energy's chairman and CEO, stated, "The company is excited to be participating in so many projects at this time. Our stated goal of acquiring small interests in a large volume of low-to moderate-risk oil and gas prospects is clearly gaining some momentum. With the Jones County play now beginning to enter the accelerated drilling phase and the pending completion of the Tunis well, we have the opportunity to see a positive increase in our held reserves position while also delivering an increase in operating income. We look forward to sharing more results as they become available."

About Victory Energy Corporation
Victory Energy Corporation (PINKSHEETS: VYEY), 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

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

    Robert J. Miranda
    Chairman and Chief Executive Officer

    Investor Relations