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Victory Energy Corporation Completes Acquisition of 10% Interest in Fairway Project in West Texas
Victory Energy Corporation Completes Acquisition of 10% Interest in Fairway Project in West Texas.
About this update from Victory Oilfield Tech, Inc.
[{"type":"text","content":"\nVictory Energy Corporation Completes Acquisition of 10% Interest in Fairway Project in West Texas \n\nVictory Energy Corporation Completes Acquisition of 10% Interest in Fairway Project in West Texas\n\nAUSTIN, TX--(Marketwired - July 02, 2014) - Victory Energy Corporation, (OTCQX: VYEY) (\"Victory\" or \"the Company\") a rapidly growing, Permian Basin focused oil and gas company, today announced that Aurora Energy Partners, a consolidated subsidiary of Victory in which Victory is the controlling member, has completed the acquisition of a 10% stake in the proved and producing Permian Basin Fairway Project from Target Energy Corporation (OTCQX: VYEY) (\"Seller\") for total cash consideration of $5.8 million. \"We are extremely pleased to acquire a 10% interest in such a high quality producing asset,\" stated Kenny Hill, CEO of Victory Energy Corporation. \"This acquisition adds approximately 64 BOE per day to our interest and provides approximately 40 additional drilling locations for future development. Since the May 1st effective date, three additional wells have begun and are in various stages of completion. In addition, at least three more wells are on the drilling schedule for the August through September timeframe. Together, these six 2014 well additions should more than double the 64 BOE of current daily production to our interest.\" About the Purchase and Sale AgreementThe Purchase and Sale Agreement (\"PSA\") was signed by Aurora on June 30, 2014, with an effective date of May 1, 2014. The total purchase price for this acquisition is $5.8 million. In response to external delays in completing conveyancing of titles, the PSA splits the closing of the Fairway acquisition into two parts.The first part (\"First Closing\") was completed on June 30, 2014 with Aurora making an immediate payment of $2.5 million to the seller, in return for the seller assigning a 10% working interest in its Darwin, BOA and Wagga Wagga production leases and in various other leases scheduled for future development.Subject to the completion of the outstanding lease conveyancing items, the Second Closing is scheduled for July 31, 2014, at which time Aurora will pay the outstanding balance of $3.3 million to the seller and in return the seller will complete the balance of the assignments.About Victory Energy \n Victory Energy Corp...