Victory Energy Corporation Acquires Interest in Alwan West Natural Gas Prospect
April 25 2011 - 11:30AM
Marketwired
As part of its continuing corporate rebuilding strategy, Victory
Energy Corporation (PINKSHEETS: VYEY), through its partnership with
Aurora Energy Partners, today announced the acquisition of a
working interest in the Alwan West natural gas prospect.
The Alwan West prospect will be the largest natural gas well
drilled by Victory Energy to date. This prospect's potential
reservoir covers an area of 175 acres. It has a reserve potential
of 8.75 billion cubic feet (BCF) of natural gas and 43.75 thousand
barrels of gas condensate. The reserve potential is based on 50
feet of reservoir sand, one million cubic feet per acre-foot of
natural gas and five barrels per million cubic feet of gas
condensate. These reserve estimates are for the first Yegua sand
only, which is the primary objective, and do not include potential
in the secondary objectives.
The Alwan West prospect is located in far western Wharton
County, Texas, near the Jackson County line. There are two natural
gas lines that cross the lease within 1,000 feet of the proposed
location. Victory Energy acquired the prospect, which includes a 5
percent working interest (WI) and a 3.8 percent net revenue
interest (NRI), from Miramar Petroleum, Inc. of Corpus Christi,
Texas, who will be the operator and who also owns a significant
working interest in the well. The well is anticipated to spud in
early June of this year.
This area produces from the Frio and Yegua (Oligocene)
formations. The lease area is surrounded on all sides by gas
condensate production. The first Yegua sand is the primary
objective. Secondary objectives are the Frio and second Yegua sand.
Alwan West lies on strike between two Yegua fields, Lost Fork (one
mile west) and AVO Grande (3,000 feet east). Lost Fork has produced
over 42 BCF, while AVO Grande has produced 7 BCF of natural gas.
Both of these fields are stratigraphic traps, as is the Alwan West
prospect.
Robert Miranda, Victory Energy's chairman and CEO, stated, "This
prospect represents our largest gas play to date and it has the
potential to deliver a stable and predictable gas flow to the
company. Unlike many other gas sands, the Yegua sand is known for
its consistent production and very low annual decline rates. This
well is supported by both significant nearby production and quality
seismic data."
About Victory Energy Corporation Victory
Energy Corporation is engaged in the exploration, acquisition,
development, and exploitation of oil and gas properties. The
company endeavors to utilize its broad range of oil and gas
industry relationships to acquire small interests in a large volume
of low- to moderate-risk oil and gas prospects. A cornerstone of
this strategy is an emphasis on developing and maintaining
relationships with proven, well established oil and gas exploration
and development companies.
Prospect acquisitions are ideally weighted toward oil, although
natural gas projects with high btu content, favorable above-market
pricing and modest decline rates will also be targeted. Targeted
prospects generally provide the company with a rapid return of
capital while offering multiple well locations for additional
drilling on an established trend. The model asset portfolio is
geologically and geographically diversified. The company's current
producing oil and gas assets are located in the United States.
For more information, please visit our website
http://www.vyey.com
Safe Harbor Statement under the Private
Securities Litigation Reform Act of 1995 There are
forward-looking statements contained in this news release. They use
such words as "intend," "will," "may," "expect," "believe," "plan,"
or other similar terminology. These statements involve known and
unknown risks, uncertainties and other factors, which may cause the
actual results to be materially different than those expressed or
implied in such statements. These factors include, but are not
limited to: risks associated with the implementation of the
Company's strategic growth plan; legislation and government
regulation including the ability to obtain satisfactory regulatory
approvals; conditions beyond the Company's control such as weather,
natural disasters, disease outbreaks, epidemics or pandemics
impacting the Company's customer base or acts of war or terrorism;
availability and cost of materials and labor; demand for natural
gas; cost and availability of capital; competition; the Company's
overall marketing, operational and financial performance; economic
and political conditions; the continued service of the Company's
executive officer; adverse developments in and increased or
unforeseen legal costs related to the Company's litigation; the
success of the Company's strategic partnerships and joint venture
relationships; the Company's ability to pay certain debts; adoption
of new, or changes in, accounting policies and practices; adverse
court rulings; results of other litigation in which the company is
involved; and other factors discussed from time to time in the
Company's news releases, public statements and/or filings with the
Securities and Exchange Commission. Forward-looking information is
provided by Victory Energy Corporation pursuant to the safe harbor
established under the Private Securities Litigation Reform Act of
1995 and should be evaluated in the context of these factors. In
addition, the Company disclaims any intent or obligation to update
these forward-looking statements.
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CONTACT: Robert J. Miranda Chairman and Chief Executive Officer
714.480.0305 Investor Relations 714.227.0391
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