Victory Energy Repositions Tenth Well -- Projected Valuation of Gas Prospect
April 21 2008 - 8:00AM
Marketwired
CARSON CITY, NV announces that the Corporation has started
drilling the tenth well in the Canyon Sandstone gas play located in
the Texas Permian Basin.
The drilling contractor has moved the drilling rig onto well #
166-7 over the weekend after the crew finished plugging and
abandoning their initial attempt to drill the tenth well for
Victory. They will drill to 1,040 feet to set the surface casing to
protect all shallow water zones, as required by the Texas Railroad
Commission.
Production tubing has been run on wells #166-8 and #166-3,
swabbing continues to bring the wells to the point of gas
production, enabling the wells to ultimately flow on their own.
Crews are laying the gas transmission line to the main gas
collection line, which allows gas to be delivered to market.
This natural gas project was originally valued at approximately
$900,000,000 pursuant to a professional petroleum engineer reserve
report utilizing a $6 dollars per 1,000 cubic feet of gas. Natural
gas has pushed past $10.00 dollars per 1,000 cubic feet in recent
months, adding the fact that the gas produced from this field
receives a 20% premium due to higher BTU content, moves current
pricing for this particular gas to $12.00 per 1,000 cubic feet.
Recalculating the approximate value of the project pushes it over
$1,800,000,000. Victory's potential share of this project can be as
high as $400,000,000, providing Victory continues to drill and
expand the project to completion.
"It is important that our shareholders understand the focus of
the Corporation and its commitment to this prospect in the Texas
Permian Basin. Not only has natural gas been identified by the
leaders and analysts of our industry as the target natural resource
to be involved in, it is also the most cost effective energy to
produce due to the low overhead required to maintain a producing
field," 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 readers not to place reliance on such
statements.
For information, please contact: Corporate Communications
1-702-989-9735
Victory Oilfield Tech (PK) (USOTC:VYEY)
Historical Stock Chart
From Jun 2024 to Jul 2024
Victory Oilfield Tech (PK) (USOTC:VYEY)
Historical Stock Chart
From Jul 2023 to Jul 2024