In an article recently published by Austin Business Journal, writer Christopher Calnan wrote up a brief highlight of Victory Energy’s reception of $36.4 million funding from its recent bank and private-placement financing round. On February 25, the company had announced its reception of the financing from Dallas-based Texas Capital Bank and from Navitus Energy Group.
Mr. Calnan noted that “[e]xecutives at the Austin-based oil and gas exploration and production company said the bank and private-placement round of financing represents a seven times multiple of the company’s $5 million market cap.” He then entered into a brief discussion of CEO Kenny Hill’s background.
Mr. Hill came to the fray of Victory Energy as its CEO in early 2012. Prior to that role, he had served as company Vice President and COO, and had served as a board member for Victory Energy since April 2011. In the earlier parts of his career, Mr. Hill was one of the first 20 employees at Round Rock-based Dell Inc., at which he held several management positions over a 16-year period.
In its release, Victory Energy emphasized the company’s strength being recognized by a financial institution like Texas Capital Bank, which was noted as having over $10.8 billion in total assets. The day thereafter, the company also issued an operational update detailing progress made on the “Lightnin” property in Glasscock County, with a new Permian well brought into production averaging 52 BOPD, with 58 Mcf of liquids-rich gas since Dec 12 of last year. Also covered in the update was a second Permian well , which has been drilled on the Lightnin property to target depth, kicking up significant shows across the Fusselman, Mississippian and Wolfcamp formations, in addition to the completion of VYEY’s first well down in South Texas on the Chapman Ranch property. VYEY’s intent to drill the additional potential at the Glasscock County project telegraphs their overarching Permian strategy quite well and the company is now squarely focused on extending their successful track record with the acquisition of additional proved and producing cash-flow assets in the basin.
An ideal fusion of successful wells on held properties with the diligent acquisition of additional cash-flow pumping assets in the Permian, spells balance sheet magic for VYEY and the company has clearly identified a high-growth ramp methodology here for driving shareholders returns on a mounting Texas portfolio. Victory Energy’s Permian Basin strategy, bolstered by a successful 85% growth of their proved reserves over the last year, now shifting to proved/producing acquisitions, has a massive, target-rich environment as well, with multiple opportunities now under review by VYEY across this 75,000-square mile area located in western Texas and southeastern New Mexico. The Permian Basin is noted to be the most active play in the United States in terms of rig count and recoverable resources, with the area being noted for producing 1.32 million barrels per day on average in 2013.
More information about Victory Energy, asset highlights, and the oil and gas industry in general can be found at: www.vyey.com
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