Victory Energy Corporation Doubles in Sizeadmin
Victory Energy Corporation Doubles in Size
On Track for Growth with Permian Basin Properties
Austin, TX US, November 12, 2013 /FSC/ – Victory Energy Corporation (VYEY – OTCQB),an independent, growth-oriented oil and gas company, today announced it will double in size for the 2013 fiscal year and is poised for significant growth with currently held Permian Basin properties. Undiscounted proved reserves are expected to exceed $6.6 million for the 2013 reporting period, delivering a significant impact on current and future revenue. Victory Energy also released historical restated financials and a new investor presentation on the company website.
GROWTH OF THE COMPANY
2012 – 2013 Comparables (includes Q4 estimates)
* 100 percent increase in mineral and drilling funding ($1 million vs. $2 million)
* 97 percent increase in undiscounted proved reserve value ($3.3 million vs. $6.2 million)
* 106 percent increase in revenue ($326,000 vs. $674,000)
* 130 percent increase in oil as a percent of revenue (18 percent vs. 41 percent)
In August 2013, Victory Energy announced a major increase in proved reserves and declared the company on track to reach an inflection point for growth and sustainable profitability. The claim was based on two key aspects: the significant improvements made during the first half of 2013 and expectations for the end of the year. “We are happy to report that our claim has been validated by the performance data. Every major 2013 goal was achieved and our current properties offer the near-term opportunity to double these key metrics again.” said Kenny Hill, CEO of Victory Energy.
INVESTOR PRESENTATION NOW AVAILABLE
Victory Energy has posted a new investor presentation on its website at www.vyey.com. The presentation includes a detailed review of the 2013 calendar year, a review of major properties in the portfolio and a look forward to the 2014 through 2015 periods. The presentation also discusses a multimillion-dollar capital raising effort with its partner Navitus Energy Group. Victory Energy anticipates the next $2.7 million of E&P capital to be invested on new wells at its Permian Basin Lightnin’ property. Based on the economics of currently producing wells at this property, Victory Energy estimates an additional $10 million of undiscounted proved reserves created from this single investment. Additional Permian properties are being evaluated for acquisition.
FINANCIAL REPORTING STATUS
Victory Energy had an outstanding 2013 performance in the areas of proved reserves, increases in cash flow and acquisition of new properties for future drilling. However, the company encountered some issues at the end of 2012 related to SEC financial reporting from prior years. After discussions with the SEC, the company determined that the non-controlling interest of its partner, Navitus Energy Group, should be separately stated on the face of the consolidated financial statements in addition to being discussed in footnote disclosure for the 2011 and 2012 reporting periods. “I’m happy to report the source of these accounting and reporting issues have been resolved and all back office accounting and business processes are now performed by qualified staff here in Austin, Texas,” said Hill.
To correct these issues, the company was required to restate all quarterly and annual financial reports for the 2011 and 2012 reporting periods. On November 12, 2013 the company concluded and filed a restatement of its annual report on Form 10-K for the years ended December 31, 2011 and December 31, 2012. Additionally, quarterly reports ended March 31, 2011, June 30, 2011, September 30, 2011, March 31, 2012, June 30, 2012 and September 30, 2012 were restated and consolidated into the Form 10-K.
Victory Energy anticipates the completion and release of yet to be filed 2013 quarterly reports (Q1, Q2 and Q3) to occur sequentially and prior to a timely filing of the 2013 Form 10-K. These additional quarterly filings will bring the company current.
Please note that Victory Energy intends to use its website, www.vyey.com, as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD. Such disclosures will be included on the Victory Energy website in the “Investor Relations” section. Accordingly, investors should monitor such portions of the Victory Energy website in addition to following press releases, SEC filings and public conference calls and webcasts.
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ABOUT VICTORY ENERGY CORPORATION
Victory Energy Corporation (OTCQB: VYEY) is an independent, growth-oriented oil and gas company focused on growing proved reserves and cash-flow via the continued development of existing properties and the acquisition of new resource properties. The Company will source new capital to facilitate this growth by continuing to utilize an established pipeline of investors available through Aurora Energy Partners and additional third-party sources.
The company is committed to creating long-term shareholder value by increasing oil reserves, lowering costs, boosting production volumes, and prudently managing the capital on its balance sheet. The company is geographically focused onshore, with a primary emphasis on the Permian Basin of Texas and southeast New Mexico.
Victory utilizes both internal capabilities and strategic industry relationships to acquire non-operated working interest positions in low-to-moderate risk oil and gas prospects. Its focus is on oil or liquid-rich gas projects within longer-life reservoirs that offer competitive finding and development (F&D) costs per barrel of oil equivalent (BOE).
Victory Energy is a SEC reporting company. The Company is traded under the ticker symbol VYEY on the OTCQB tier, operated by OTC Markets Group.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on certain assumptions made by the Company based on management’s experience, perception of historical trends and technical analyses, current conditions, anticipated future developments and other factors believed to be appropriate and reasonable by management. When used in this press release, the words “will,” “potential,” “believe,” “estimated,” “intend,” “expect,” “may,” “should,” “anticipate,” “could,” “plan,” “project,” or their negatives, other similar expressions or the statements that include those words, are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Among these forward-looking statements are statements regarding EURs, estimated BOE, estimated future gross undiscounted cash flow and estimated drilling and completion costs. Such forward-looking statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements, including but not limited to, changes to drilling plans and schedules by the operators of prospects, overruns in costs of operations, hazards, delays, and any other difficulties related to drilling for and producing oil or gas, the price of oil, NGLs, and gas, results of marketing and sales of produced oil and gas, estimates made in evaluating reserves, competition, general economic conditions and the ability to manage and continue growth, and other factors described in the Company Annual Report on Form 10-K/A for the fiscal year ended December 31, 2011 and any updates to those risk factors set forth in the Company’s Quarterly Reports on Form 10-Q. Further information on such assumptions, risks and uncertainties is available in the Company’s other filings with the Securities and Exchange Commission (“SEC”) that are available on the SEC’s website at www.sec.gov, and on the Company’s website. Any forward-looking statement speaks only as of the date on which such statement is made and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.
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Source: Victory Energy Corporation (OTCQB: VYEY) http://roepkepr.com
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Posted: November 12th, 2013 under FSCWIRE.