Yesterday, Victory Energy reported that it received $36.4 million in financing from Texas Capital Bank and Navitus Energy Group, its partner in Aurora Energy Partners. Today, the company builds upon that news by sharing an operations update in a news release.
As of January 2014, Victory Energy had completed two of its wells and was readying its third well for completion. One of the completed wells and the well being readied for completion are located at Victory Energy’s property in Glasscock County, Texas. In the past, vertical drills that had been drilled by the company in this field had yielded on average an estimated 100,000 Barrels of Oil Equivalent (BOE) as ultimate recovery rates. Victory Energy holds a 20% working interest and an 18.75% net revenue interest in these wells, and reports it has drilling plans for additional wells at this location.
At the Glasscock County property, Victory Energy’s new Permian Basin well, McCauley 6 #2 is online for production and has been averaging 52 barrels of oil and 58 Mcf of liquids rich gas daily since December 12, 2013. Efforts at the company’s second Permian well, Cotter 6 #2, were shown to have brought the well to its target depth with significant shows in the Fusselman, Mississippian, and through the Wolfcamp formations. Currently, efforts are underway to ready the Cotter well for a multi-stage frac completion.
Victory Energy also notes that its third well, located on the company’s Chapman Ranch property in Nueces County, Texas, has been drilled and completed. The company acquired this well in early 2012 before concentrating its efforts on the Permian Basin. This south Texas well spud on December 22, 2013 and reached a total depth of 7,800 feet on January 7, 2014. Furthermore, it was successfully perforated and flow tested from the Frio Sands on January 21, 2014 at 67 barrels of oil and 10 Mcf of dry gas per day. Once storage tanks and other surface equipment have been installed, the well will be ready for production. Victory Energy reports holding a 5% working interest and a 3.75% net revenue interest in its Chapman Ranch well.
“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 Energy.
Victory Energy reports that all three wells will be included in its mid-year reserve report in August 2014, as will any additional wells that are drilled, completed, or acquired prior to that filing.
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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