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Victory Energy Corporation Sells Its Lightnin' Property
Victory Energy Corporation Sells Its Lightnin' Property.
About this update from Victory Oilfield Tech, Inc.
[{"type":"text","content":"\nVictory Energy Corporation Sells Its Lightnin' Property\n\n\nVictory Energy Corporation Sells Its Lightnin' Property\n\n\nWill Redeploy Proceeds to Additional Acquisitions in Permian Basin\n\n\nAUSTIN, TX--(Marketwired - June 09, 2014) - Victory Energy Corporation, (OTCQX: VYEY) (\"Victory\" or \"the Company\") a rapidly growing, Permian Basin focused oil and gas company, today announced that it has sold its Permian Basin Lightnin' property in Glasscock County, Texas to an unnamed buyer for $4,080,000. The transaction closed on June 5, 2014. Victory's 20% working interest and 15% net revenue interest in the Lightnin' property was acquired through a March 2012 transaction with the operator, Hannathon Petroleum. The first of four wells was drilled on the property in late 2012. The most successful of the four wells (Cotter 6 #2) was brought into production in March of 2014. All four vertical wells targeted the Spraberry trend, with a focus on the stacked Wolfcamp, Strawn, Fusselman and Cline formations. Daily net production to the company interest was approximately 36 BOE at the time of the sale. The Lightnin' property generated a 63% Internal Rate of Return (\"IRR\") for the 25 month period the Company held the property. \"As part of our 2012 shift in focus toward the Permian Basin of Texas and southeast New Mexico, our acquisition of the 640 acre Lightnin' property represented a new beginning for the company. Its larger non-operated working interest and multi-well development program provided a solid platform to demonstrate the solid returns available to our shareholders. As we grow, we will acquire bigger versions of this property that offer significantly more upside development opportunity. We are selling the Lightnin' property to focus on larger more strategic projects that are available in the basin. Our recent acquisition announcement of the 4,650 gross acre Fairway project is just one example of upsizing our growth via more production and significantly more development drilling,\" explained Kenny Hill, CEO of Victory Energy Corporation. \"This sale and our pending Fairway acquisition are consistent with our overarching strategy to deploy our capital to longer-life, high quality prospects with a higher mix of oil and liquids. The 63% IRR demonstrates our ability to deliver ...