Victory Energy Corporation Completes Acquisition of 10% Interest in Fairway Project in West Texas
02 Julio 2014 - 7:00AM
Marketwired
Victory Energy Corporation Completes Acquisition of 10% Interest in
Fairway Project in West Texas
AUSTIN, TX--(Marketwired -
July 02, 2014) - Victory Energy Corporation, (OTCQX: VYEY) ("Victory" or "the Company") a
rapidly growing, Permian Basin focused oil and gas company, today
announced that Aurora Energy Partners, a consolidated subsidiary of
Victory in which Victory is the controlling member, has completed
the acquisition of a 10% stake in the proved and producing Permian
Basin Fairway Project from Target Energy Corporation (OTCQX: VYEY) ("Seller") for total cash
consideration of $5.8 million.
"We are extremely pleased to acquire a 10% interest in such a
high quality producing asset," stated Kenny Hill, CEO of Victory
Energy Corporation. "This acquisition adds approximately 64 BOE per
day to our interest and provides approximately 40 additional
drilling locations for future development. Since the May 1st
effective date, three additional wells have begun and are in
various stages of completion. In addition, at least three more
wells are on the drilling schedule for the August through September
timeframe. Together, these six 2014 well additions should more than
double the 64 BOE of current daily production to our interest."
About the Purchase and Sale Agreement
The Purchase and Sale Agreement ("PSA") was signed by Aurora on
June 30, 2014, with an effective date of May 1, 2014. The
total purchase price for this acquisition is $5.8 million. In
response to external delays in completing conveyancing of titles,
the PSA splits the closing of the Fairway acquisition into two
parts.
- The first part ("First Closing") was completed on June 30, 2014
with Aurora making an immediate payment of $2.5 million to the
seller, in return for the seller assigning a 10% working interest
in its Darwin, BOA and Wagga Wagga production leases and in various
other leases scheduled for future development.
- Subject to the completion of the outstanding lease conveyancing
items, the Second Closing is scheduled for July 31, 2014, at which
time Aurora will pay the outstanding balance of $3.3 million to the
seller and in return the seller will complete the balance of the
assignments.
About Victory Energy
Victory Energy Corporation (OTCQX:
VYEY), is a public held, independent growth-oriented oil and
gas exploration and production company based in Austin, Texas, with
additional resources located in Midland, Texas. Victory currently
holds interests in high profile targets such as the Wolfcamp,
Mississippian and Fusselman plays in the Permian Basin. Victory is
the managing partner of Aurora Energy Partners, a Texas General
Partnership (Aurora). Victory holds a 50% partnership interest in
Aurora which is a consolidated subsidiary of Victory. Victory
utilizes sustainable low-risk vertical well development on existing
properties and new acquisitions which offer repeatable and highly
profitable results; and achieves these results by targeting
predictable resources plays, favorable operating environments and
consistent reservoir quality across multiple target horizons with
long-lived reserve characteristics. For additional information on
the company, please visit www.vyey.com.
Safe Harbor Statement
This press release contains forward-looking statements within
the meaning of Section 21E of the Securities Exchange Act of 1934.
All statements, other than statements of historical facts, included
in this press release that address activities, events or
developments that the Company expects, believes or anticipates will
or may occur in the future are forward-looking statements. These
statements are based on certain assumptions made by the Company
based on management's experience, perception of historical trends
and technical analyses, current conditions, anticipated future
developments and other factors believed to be appropriate and
reasonable by management. When used in this press release, the
words "will", "potential", "believe", "estimated", "intend",
"expect", "may", "should", "anticipate", "could", "plan",
"project", or their negatives, other similar expressions or the
statements that include those words, are intended to identify
forward-looking statements, although not all forward-looking
statements contain such identifying words. Among these
forward-looking statements are statements regarding EURs, estimated
BOE, estimated future gross undiscounted cash flow and estimated
drilling and completion costs. Such forward-looking statements are
subject to a number of assumptions, risks and uncertainties, many
of which are beyond the control of the Company, which may cause
actual results to differ materially from those implied or expressed
by the forward-looking statements, including but not limited to,
changes to drilling plans and schedules by the operators of
prospects, overruns in costs of operations, hazards, delays,
and any other difficulties related to drilling for and producing
oil or gas, the price of oil, NGLs, and gas, results of marketing
and sales of produced oil and gas, estimates made in evaluating
reserves, competition, general economic conditions and the ability
to manage and continue growth, and other factors described in the
Company Annual Report on Form 10-K/A for the fiscal year ended
December 31, 2013 and any updates to those risk factors set forth
in the Company's Quarterly Reports on Form 10-Q. Further
information on such assumptions, risks and uncertainties is
available in the Company's other filings with the Securities and
Exchange Commission ("SEC") that are available on the SEC's website
at www.sec.gov, and on the Company's website. Any forward-looking
statement speaks only as of the date on which such statement is
made and the Company undertakes no obligation to correct or update
any forward-looking statement, whether as a result of new
information, future events or otherwise, except as required by
applicable law.
Investor Relations Contact Derek GradwellMZ GroupSVP Natural
ResourcesPhone: 512-270-6990Email: dgradwell@mzgroup.us Web:
www.mzgroup.us
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