SOURCE: Victory Energy

Victory Energy

May 26, 2011 14:54 ET

Victory Energy Provides Market Update for Jones County Project

White #2 Well Scheduled for Spud; Two Additional Wells to Follow

NEWPORT BEACH, CA--(Marketwire - May 26, 2011) - Victory Energy Corporation (PINKSHEETS: VYEY), through its partnership with Aurora Energy Partners, today announced the resumption of drilling at its Jones County oil and gas project.

Drilling on the Jones County project had been suspended for several weeks to further analyze and reprocess the 3-D seismic data the company had acquired for the site. The resumption of the drilling program is scheduled to begin next week with the spud (a well is considered "spud" when the drill bit hits the ground) of the White #2 well. Two additional wells located within the play area will follow immediately.

Victory Energy's current acreage at the Jones County project holds two producing wells, the Young #1 and the White #1. Oil and gas production from these wells is from the Caddo formation.

Robert Miranda, Victory Energy's chairman and CEO, stated, "We are encouraged by the reprocessed 3-D seismic data now available and the improved guidance it provides for our ongoing drilling effort at the Jones County project. Being able to identify low risk prospects and develop them quickly is an important component of our business model."

About the Jones County Oil Trend

Victory Energy's working interest in the Jones County oil and gas trend was announced on February 22, 2011 as part of a large multi-well, multi-year drilling program with C.O. Energy, LLC. The prospective development area covers Jones County, Texas, and is supported by 82 square miles (52,480 acres) of 3-D seismic data. Victory Energy maintains a thirty-day first right of refusal to participate in each well.

The agreement provides a working interest of no less than 1.5 percent and up to 2.5 percent for each acreage block acquired. The operator, C.O. Energy, envisions drilling one to three wells per month until the targeted area is fully developed.

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