Victory Energy Corporation (OTCBB: VYEY) announced today that it has received
the first payment for revenue from natural gas sales from its wells in the
Corporation's Canyon Sandstone Gas play located in the Texas Permian Basin.
Victory deposited its first revenue of approximately $63,500,
pre-distribution,for natural gas sales of 11,960 MCF of natural gas production from its
interest in six gas wells. The revenue was based on December 2007 natural
gas pricing of $7.5825 per MCF. This revenue number will continue to grow each
month as new wells are drilled, completed and brought online with their
production.
As Victory's production has a 20% higher BTU content, the Corporation
receives a 20%bonus in pricing. At the close business Friday, March 7, 2008 natural gas
pricing was $9.77 per MCF, Victory's price with its 20% bonus is $11.724 per
MCF. Each well will deliver approximately 500 Million Cubic Feet of proven
undeveloped gas reserves per well to Victory.
Well 166-6 is flowing on its own at a steadily increasing production rate
and continues to clean up the water from the stimulation treatment at a rate of
approximately 30 bbls of frac water per day. The single point test is on hold
until the production is dryer and the water does not interfere with the test
results.
Well 166-8 should reach total depth of approximately 5000 feet by March
14.As the operator nears the target production zone, the drilling rate will slow
down as the rig drills through the Canyon Sandstone formation.
The next drill site is already under construction and should be ready for
the new drilling rig by March 17. By this date, all of the necessary auxiliary
equipment for the new drilling rig will be ready for the rig to go into
service and drill its first well.
"As new wells are drilled and completed, we anticipate increased interest by
our investors into this gas field. With this, we intend to increase our activity
in the Texas Permian Basin through purchase of additional equipment and the
resources required to support them. These steps are strategic in the growth
and long term development of shareholder value," stated Jon Fullenkamp,
President of Victory Energy Corporation.
About Victory Energy Corporation:
Victory Energy Corporation (http://www.victoryenergyoilandgas.com) is a
publicly traded, developmental stage petroleum company primarily dedicated to
energy-related opportunities. The Company goal is to evaluate profitable
options, develop a solid foundation through leadership and sound business acumen, and
acquire producing wells as well as other potentially profitable prospects within
the Oil & Gas Industry.
Certain statements contained herein are "forward-looking" statements (as
such term is defined in the Private Securities Litigation Reform Act of 1995).
Because such statements include risks and uncertainties, actual results may
differ materially from those expressed or implied by such forward-looking
statements. Factors that could cause actual results to differ materially
from those expressed or implied by such forward-looking statements include, but
are not limited to, those discussed in filings made by the Company with the Securities
and Exchange Commission. The Company's filings may be accessed at the SEC's
EDGAR system at www.sec.gov. Statements made herein are as of the date of this press
release and should not be relied upon as of any subsequent date. The Company cautions
readersnot to place reliance on such statements.
For information, please contact:
Corporate Communications
1-702-989-9735
|
