Victory Energy Corp. (VYEY) Capitalizing on Strong 2013 Performance for Pronounced Growth

Austin-based Victory Energy is angling for strong company growth through an aggressive business strategy of development efforts on existing oil properties and strategic acquisitions of new, promising resource properties. To that end, the company is engaging in low-risk vertical well development on existing properties as well as acquisitions of new resource properties with predictable rates of return and break-even points below $65 below barrel oil price.

Victory Energy has been targeting resource property sites in the Texas- and New Mexico-based Permian Basin. Located in western Texas and southeast New Mexico, the Permian Basin is reported by the most active play within the United States according to Baker Hughes. According to the oilfield service company, in 2013 the Permian Basin had over 2,200 oil wells, over 460 rigs, and approximately 4.9 wells per rig. Permian vertical wells have been noted to yield over $2.5 million of proved reserve value for every $1 million of capital expenditures spent on oil well drilling and completion. In 2013, the Permian Basin delivered on average 1.3 million barrels of oil per day. At present the Permian Basin has been delivering approximately 1.4 million barrels of liquids per day, on average.

In regard to performance, Victory Energy had an excellent year in 2013. The company grew its reserve asset portfolio by 85 percent. It also reported a full-year revenue increase of 125 percent from last year’s revenue total, up to $735,413 from $326,384. Furthermore, Victory Energy was successful in reducing its net losses by 70 percent from $7 million in 2012 to $2.1 million in 2013.

This performance subsequently gave Victory Energy a strong springboard to launch itself even more strongly in 2014. In late February 2014, based on its leadership team’s experience and its strong performance, Victory Energy received $36.4 million in funds from bank and private-placement financing. Dallas-based Texas Capital Bank was responsible for Victory Energy’s reception of a $26.4 million credit facility, and Victory Energy received an additional $10 million from the Navitus Energy Group, a Texas general partnership. In March 2014, Victory Energy announced a further development: its engagement of Euro Pacific Capital, a full-service broker-dealer with a specialization in international markets and securities. Euro Pacific Capital is headed by well-known economist Peter Schiff, and the company has six regional locations with over sixty investment consultants, a team of research analysts, and three divisions.

At present Victory Energy is looking to build its market share by deploying its $36 million of capital reserves toward new acquisitions of promising reserve properties with plenty of upside potential. With its increased cash flow and expected ratio of $2.5 million in reserve value for every $1 million in capital expenditures spent, the company forecasts that its Permian Basin focus will deliver return on revenue rates of greater than 20 percent. Leveraging the talents and insights of a management team with over 120 years of combined expertise, Victory Energy is emerging as a strong player in the domestic oil production marketplace.

For more information about Victory Energy, please visit: www.vyey.com

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