Today before the
opening bell, Victory Energy shared a new company milestone: it obtained $36.4
million of bank and private-placement funding via its interest in its Aurora
Energy Partners. This funding round represents an amount that is seven times
greater than Victory Energy’s current market value of $5 million.
Victory Energy
obtained $26.4 million of the financing from Texas Capital Bank (Dallas) and an
additional $10 million in financing from its relationship with Navitus Energy
Group (Austin), Victory Energy’s partner in Aurora Energy Partners. As a
premier financier of hundreds of leading independent oil and gas companies,
Texas Capital Bank is noted to have over $10.8 billion in total assets. Navitus
Energy Group is composed of over 100 individual investors who provide funding
to the company directly as well as through a private placement that was begun
in October 2012. Navitus Energy Group also benefits from a relationship with
Visionary Private Equity Group of Springfield, Missouri.
“We are tremendously
excited to have a bank like Texas Capital recognize the strength of our
management team and the value of our growing portfolio of Permian Basin assets.
This funding round is a validation of our business model and will significantly
accelerate our growth. Over the past year we’ve grown our proved reserves by
85% and by utilizing this current funding round to acquire proved, producing
assets, we anticipate a significant acceleration in reserve growth. As we grow,
we will continue to focus on creating shareholder value by rapidly growing
unconventional oil, and liquids-rich natural gas reserves on existing
properties and through the acquisition of new resource properties. Our Permian
Basin focus offers better than 20% rates of return (ROR) and break-even points below
$65 oil. This focus on returns is achieved by targeting the predictable
resources plays, favorable operating environment, and consistent reservoir
quality across multiple target horizons, and high drilling success rates of the
Permian Basin of Texas,” said Kenny Hill, CEO of Victory.
Victory Energy
signified its intention to use the $26.4 million credit facility from Texas
Capital Bank and $10 million from Navitus Energy Group for swifter company
growth via strategic acquisitions and property development. A publicly held,
independent, growth-oriented oil and gas company, Victory Energy is
headquartered in Austin, Texas, with additional key resources in Midland,
Texas. The company’s efforts are steered by a savvy management team with over
120 years of combined professional experience. The Permian Basin, the
75,000-square mile area which Victory Energy has been targeting, is noted to be
the most active play in the United States, in terms of rig count and
recoverable resources. In 2013, the Permian Basin was noted to produce on
average 1.32 million barrels per day, and its daily production is slated to
grow to 1.8 million barrels per day in 2016.
More information
about Victory Energy, asset highlights, and the oil and gas industry in general
can be found at: www.vyey.com
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