Victory Energy Provides Operational Update

NEWPORT BEACH, Calif., July 11, 2011 /PRNewswire/ -- Victory Energy Corporation (OTCQB: VYEY), through its partnership with Aurora Energy Partners, is pleased to provide an update for the Company's exploration and development projects.

The Tunis Creek Oil and Gas Well - The oil storage tank battery was completed on July 6, 2011. The well was re-opened and began flowing to a six hundred barrel oil storage facility and a natural gas separator. The well is currently producing oil and gas naturally from the Ellenberger formation and during the well testing period is being evaluated for optimal daily flow.  This 1,600 acre multi-well prospect is oil and gas focused.  The first well (University "6" #1) was completed on June 24, 2011. Preliminary estimated recoverable reserves exceed 500,000 barrels of oil and an undetermined volume of natural gas. The well is located in Pecos County, Texas.  The company owns a 5 percent working interest and a 3.75 percent net revenue interest.

The Jones County Oil Play - A fifth well (Olson #1) was spud on July 2nd and is currently drilling ahead to a target depth of 5,325 feet.  A sixth well is scheduled to be spud upon completion of the Olson #1.  The company hopes to participate in approximately two wells per month in the prospect area with each well targeting between 20,000 and 45,000 barrels of recoverable oil.  Four wells have been drilled to date of which two wells were successful and are currently on production.  Located in Jones County, Texas, this oil focused continuous drilling project is supported by 82 square miles of 3-D seismic imaging. The company holds a working interest of no less than 1.5 percent and up to 2.5 percent for each acreage block acquired.

The Alwan West Gas Prospect - The spud schedule has been moved up from the end of the month and is now expected to occur this week.  The location contractor is now building the road, digging the pits and installing the pad.   Drilling time is anticipated to be less than 15 days.  The prospect well has a target depth of 7,100 feet with target formations consisting of the Frio and Yegua.  Potential recoverable natural gas reserves are 8.75 billion cubic feet (BCF). Natural gas delivery pipelines are already in place.  This well is located in Wharton County, Texas.  The company owns a 5 percent working interest and a 3.8 percent net revenue interest.

The Atwood Secondary Oil Recovery Project - This oil focused waterflood project covers over 1,200 acres with 31 wells.  Primary production was approximately 527,000 barrels of oil.  Utilizing a waterflood, the company hopes to recover between 500,000-1,000,000 barrels of oil.   Development work has now begun on the waterflood and is anticipated to conclude in the fourth quarter of this calendar year. Peak production is targeted within a year to 18 months from initial injection.  The project is located in Hughes County, Oklahoma.  The company owns a 2 percent working interest and a 1.58 percent net revenue interest in this project.

Further detail for each of these projects can be found on the company website at www.vyey.com.  Victory Energy intends to provide periodic updates to the investment community as progress is made across its asset base.

About Victory Energy Corporation

Victory Energy Corporation is engaged in the exploration, acquisition, development, and exploitation of oil and gas properties. The company endeavors to utilize its broad range of oil and gas industry relationships to acquire small interests in a large volume of low- to moderate-risk oil and gas prospects.  A cornerstone of this strategy is an emphasis on developing and maintaining relationships with proven, well established oil and gas exploration and development companies.

Prospect acquisitions are ideally weighted toward oil, although natural gas projects with high btu content, favorable above-market pricing and modest decline rates will also be targeted.  Targeted prospects generally provide the company with a rapid return of capital while offering multiple well locations for additional drilling on an established trend. The model asset portfolio is geologically and geographically diversified. The company's current producing oil and gas assets are located in the United States.

Victory Energy is current with its SEC filings and is a full reporting company. The Company is traded under the ticker symbol VYEY on the OTCQB tier, operated by OTC Markets Group.

For more information about the company or to subscribe to our email news distribution service, please visit our website http://www.vyey.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

There are forward-looking statements contained in this news release.  They use such words as "intend," "will," "may," "expect," "believe," "plan," or other similar terminology.  These statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results to be materially different than those expressed or implied in such statements.  These factors include, but are not limited to: risks associated with the implementation of the Company's strategic growth plan; legislation and government regulation including the ability to obtain satisfactory regulatory approvals; conditions beyond the Company's control such as weather, natural disasters, disease outbreaks, epidemics or pandemics impacting the Company's customer base or acts of war or terrorism; availability and cost of materials and labor; demand for natural gas; cost and availability of capital; competition; the Company's overall marketing, operational and financial performance; economic and political conditions; the continued service of the Company's executive officer; adverse developments in and increased or unforeseen legal costs related to the Company's litigation; the success of the Company's strategic partnerships and joint venture relationships; the Company's ability to pay certain debts; adoption of new, or changes in, accounting policies and practices; adverse court rulings; results of other litigation in which the company is involved; and other factors discussed from time to time in the Company's news releases, public statements and/or filings with the Securities and Exchange Commission.  Forward-looking information is provided by Victory Energy Corporation pursuant to the safe harbor established under the Private Securities Litigation Reform Act of 1995 and should be evaluated in the context of these factors.  In addition, the Company disclaims any intent or obligation to update these forward-looking statements.

SOURCE Victory Energy Corporation