Velocity Energy Inc announces the sale of assets in the Appalachian Basin.
Houston, Texas Oct 08, 2010—Velocity Energy Inc(OTC:VCYE) announces the closing of the sale of 33.6% of the Assets purchase and closed by Velocity on Oct 1, 2010 in the working interest of 85 wells in the Appalachian Basin shale play. Velocity sold these assets to two private companies to raise the additional funds needed to complete the acquisition of the Appalachian Basin wells. With this sale, Velocity proportionally reduced its financial obligation to fund its rights to drill and earn interest in 13,000 acres on lands. Velocity and its new partners believe these properties can support the development of 43 horizontal wells and 58 vertical wells which will develop greater than 50 BCF of risked reserves. Velocity and its new working interest partners are seeking interested parties in the form a working interest partnership or some other similar type of business relationship required by that potential investor. Velocity and its partners are ready when funded, to then initiate the development program.
Forward-Looking Statements
Information herein contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which can be identified by words such as "may," "will," "expect," "anticipate," "estimate" or "continue," or comparable words. All statements other than statements of historical facts that address activities that the Company expects or anticipates will or may occur in the future are forward-looking statements. Readers are encouraged to read our Form 10-K and Form 10-K/A for the year ended December 31, 2009 and the other SEC reports of the Company and any and all other documents filed with the SEC regarding information about Velocity Energy for meaningful cautionary language in respect of the forward-looking statements herein. Interested persons are able to obtain free copies of filings containing information about Velocity Energy, without charge, at the SEC's Internet site.