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Victory Energy Concludes Fairway Acquisition
Victory Energy Concludes Fairway Acquisition.
About this update from Victory Oilfield Tech, Inc.
[{"type":"text","content":"\nVictory Energy Concludes Fairway Acquisition\n\nVictory Energy Concludes Fairway Acquisition\n\nAUSTIN, TX--(Marketwired - September 30, 2014) - Victory Energy Corporation, (OTCQX: VYEY) (\"Victory\" or \"the Company\") a rapidly growing, Permian Basin focused oil and gas company, today announced a conclusion to the Fairway Project acquisition.Since the July 2, 2014 announcement of the Fairway acquisition, the Company has acquired a 10% WI and 7.5% NRI in approximately 2,180 gross acres located in Glasscock and Howard County Texas. This acreage is being held by production with ten (10) existing wells. Forty-(40) acre well spacing provides significant future drilling opportunity on the property. The company acquired its interest from Target Energy Limited (TELA) of Australia.Victory had initially planned to acquire a 10% WI in the full 4,530 acres of the Fairway prospect. During its due diligence review the Company discovered significant title impairment issues in portions of the acreage. These issues were not resolved to Victory's satisfaction. On September 23, 2014, after an extensive period of unsuccessfully trying to re-value the transaction in a commercially reasonable manner, the Company and TELA mutually agreed to terminate the PSA. Because of the mutual termination, all of the second closing acreage, with the exception of the acreage allocated to the Taree 193-1 well, is no longer part of the Fairway transaction. The Company will retain its 10% WI interest in the Taree 193-1 well as part of its termination Agreement with Tela. As of the date of this release, a closing date on the Taree 193-1 well acreage has not been scheduled.\"The termination is a result of unresolved issues relating to re-pricing evaluation methodology and the potential loss of future development and drilling rights on portions of the leases that are a part of the second closing,\" said Kenny Hill, CEO of Victory Energy. \"Victory's acquisitions must meet our economic benchmarks and ownership must be deliverable by sellers before we are able to close. Because we were unable to meet these benchmarks on most of the second closing acreage, we were obligated to pass on the acreage and deploy capital to other projects.\"About Victory Energy \n Victory Energy Corporation (OTCQX: VYEY), is a public held, growth-o...