Victory Energy Corp.DL (2/14/2007 4:30 PM)
VYEY Last: 0.85Change: +0.01(+1.19%)
Last Trade: 2/21/07
Victory Energy Corporation Signs Letter of Intent to Drill Palo Duro Basin
Victory Energy Update on MesaVictory Energy Corporation (BB: VYEY) today announced it has entered into a letter of intent dated February 19,2007.Mr. Jon Fullenkamp, President and Chief Executive Officer of Victory Energy Corporation, the ("Company"), announced today that the company has entered into a Letter of Intent with Eldorado Exploration to conduct a drilling program on Eldorado's Palo Duro Basin Texas leases.
The letter of intent sets out the substantive terms of a Formal Agreement
("Agreement") that Eldorado and Victory will complete and execute within 60
days. Under the Agreement, Victory will be required to conduct up to one
hundred thousand dollars ($100,000.00) for seismic evaluation to determine
the first three drilling targets. In exchange, Victory will receive 50% of
the mineral rights of all hydrocarbon deposits on the first 8 sections,
approximately 5,000 acres of land. During the evaluation of the drilling
targets, and including the time to drill the first 3 wells, Victory Energy
Corporation will have the ability to exercise its irrevocable option to
lease up to a total of 100,000 acres of mineral rights within the Palo Duro
Basin from Eldorado and its partners.
"With the ability to lease up to 100,000 acres in Texas, coupled with the 138,000 acres Victory has in Montana, the Company is in an extremely
attractive position within the petroleum industry for growth and providing enhanced shareholder value through future asset development," stated Jon
Fullenkamp, President of Victory Energy Corporation.
About Victory Energy Corporation: Victory Energy Corporation is a publicly traded, developmental
stage petroleum company primarily dedicated to energy-related opportunities. The Company goal is to evaluate profitable options, develop a solid foundation through leadership and sound business acumen, and
acquire producing wells as well as other potentially profitable prospects within the Oil & Gas Industry.
Drilling exceeds expectations:$4.00
Drilling meets expectations:$2.60
Drilling is below expectations:$1.50
On January 29th VYEY announced that their first exploratory well "has
probable shows for oil and gas in 3 medium to large zones which total 195
feet of potential production."
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