Drilling Completed at Tunis Creek Prospect
Victory Energy, through its partnership with Aurora Energy Partners, announced the successful completion of its Tunis Creek Oil and Gas Prospect in Pecos County, Texas. The University "6" #1 Tunis Creek well was spud on April 22, 2011 and was completed in the Ellenburger formation on Friday, June 24, 2011.
Very preliminary testing of the Ellenburger formation indicates that oil reserves could exceed earlier estimates. Pre-drilling internal total prospect reserve estimates exceeded 500,000 barrels. These preliminary flow tests on the University "6" #1 Tunis Creek well were performed using its natural bottom-hole pressure and was limited to the lower 20 percent of the Ellenburger formation in the wellbore. Sustained flow tests to evaluate bottom-hole pressure and to develop optimal flow rates for this well should occur over the next thirty days. Storage tanks are scheduled to be installed this week with oil sales to market occurring shortly thereafter. Associated natural gas testing has not yet occurred. A natural gas delivery pipeline is nearby.
Based on the positive results of this first well and the previously identified multiple oil and gas pay zones above this producing formation, the company will immediately begin evaluating locations for a second well on the acreage. Several additional development wells may be drilled if production warrants. Field rules established by the State of Texas will determine the exact number of wells.
Robert Miranda, Victory Energy's chairman and CEO, stated, "These preliminary completion results are outstanding and offer the first sizable validation of our ability to use our extensive network of oil and gas contacts to deliver immediate value to our shareholders. Wells of this quality and with reserves of this size are not typically available to micro-cap companies like Victory Energy. The additional development drilling opportunities available on the Tunis acreage could afford us at least two additional years of drilling at this location."
Victory Energy, through its partnership with Aurora Energy Partners, holds a 5 percent working interest and a 3.75 percent net revenue interest in this oil focused prospect.
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