Victory Energy, a
publicly held, independent, oil and gas company, sees much of its efforts today
focused on a new Permian Basin well (McCauley 6 #2) which is now on production
and averaging 52 barrels of oil and 58 Mcf of liquids rich gas per day since December
12, 2013. A second Permian well (Cotter 6 #2) has reached target depth with
significant shows in the Fusselman, Mississippian and through the Wolfcamp
formations. The Cotter well is now prepping for a multi-stage frac completion.
Both of these vertical wells are located at the company’s “Lightnin” property
in Glasscock County Texas. Prior vertical wells drilled by the company in this
field have each averaged estimated ultimate recovery rates of approximately
100,000 Barrels of Oil Equivalent (BOE). Additional wells remain to be drilled.
The company has a 20% working interest and an 18.75% net revenue interest in
these wells.
The company’s
Permian Basin well project is representative of a strategy associated with
future development opportunities of its acreage positions. The company’s focus
on returns is achieved by targeting the predictable resources plays, favorable
operating environment, consistent reservoir quality across multiple target
horizons, long-lived reserve characteristics, and high drilling success rates
of the Permian Basin of Texas and southeast New Mexico. The company plans to
utilize its recent $26 million credit facility and access to $10 million of
private capital from its partner Navitus Energy Group, to aggressively grow the
company’s Permian assets using targeted acquisitions of producing properties
with high development potential.
“The Permian
continues to be a winner for the company. Since entering that prolific area in
March of 2012, the company has successfully drilled and completed every well it
has attempted there. With the addition of our new $26.4 million credit
facility, we will be able to scale that success in a very big way. In addition,
the company is currently reviewing opportunities to acquire a significant
amount of proved and producing (cash-flow) reserves in the Permian. This
combination of successful wells on held properties and the additional proved
producing reserves gained through acquisitions will very quickly improve our
balance sheet and accelerate our plan to rapidly grow the company and enhance
shareholder value,” said Kenny Hill, CEO of Victory.
The Energy
Information Administration and the Energy Department said in a Feb.10 report
that Crude production in the Permian is expected to rise to a record 1.41 million
barrels a day in March from 1.3 million a year earlier. Pioneer, which holds
one of the largest positions in the Permian, is spending much of its 2014
drilling capital in northern areas of the basin such as Spraberry and Wolfcamp,
Timothy Dove, the Irving, Texas-based company’s chief operating officer, said
during a presentation on March 4. Concho, the biggest Permian Basin operator
drilling for oil, is adding four rigs throughout the year, E. Joseph Wright,
the Midland, Texas-based company’s COO, said at a conference March 3.
“When you look at
our rate of growth going forward, in the last half of 2014, we’ll increase that
rate of growth and on into 2015 as well,” Wright said.
Victory is
headquartered in Austin, Texas, with additional technical and specialized
resources located in Midland, Texas.
For more information
about the company, visit www.vyey.com
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