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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