Victory Files 2012 First Quarter 10-Q

AUSTIN, Texas, May 15, 2012 /PRNewswire/ -- Victory Energy Corporation (OTCQB: VYEY) announced today that its first quarter 2012 10-Q has been filed with the Securities and Exchange Commission (SEC).

Kenny Hill, Victory Energy's CEO, stated, "As previously stated, the first quarter of 2012 represents the conclusion of our turnaround. We ended the period with $872,367 in cash on the balance sheet, no debt and an established source of additional capital through our relationship with The Navitus Energy Group.   On March 26th we began our shift to larger working interest projects by acquiring a 75% working interest the company's largest prospect to date (Lightnin').  Estimated ultimate recovery for this single project exceeds 920,000 barrels of oil equivalent for the base case and over 1.8 million barrels of oil equivalent for the high case.  This single project has the potential to deliver value beyond anything the company has ever achieved.  The first well is tentatively scheduled to be drilled in August.  Additional projects with similar scope are already in our development and review deal pipeline."

During the three months ended March 31, 2012, Victory generated revenues of $63,965 compared to $85,786 in the first quarter of 2011.  Victory's natural gas production declined to 114.1 thousand cubic feet (Mcf) per day in the first quarter, compared to 129.7 Mcf per day in the prior year period.  Victory's average realized price per Mcf declined to $4.77 from $6.49.

Victory Energy reported an after tax net loss of $5.0 million, or $0.46 per share, for the first quarter of 2012 compared to a loss of $0.8 million, or $0.30 per share, in the prior year period.  First quarter 2012 results included $0.3 million of non-cash compensation expense and $3.9 million of non-cash finance related charges. The non-cash finance charge was recorded at the end of February when all convertible debentures were converted to common shares.

First quarter results included a non-recurring credit of $35,157 to lease operating expense.   Excluding that credit, the Company's lease operating expenses would have totaled $21,002, compared to $41,498 in the prior quarter.  On a per Mcf basis, Victory's lease operating expense declined 43% to $2.02 from $3.55.

Please note that Victory Energy intends to use its website, www.vyey.com, as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD. Such disclosures will be included on the Victory Energy website in the "Investor Relations" section. Accordingly, investors should monitor such portions of the Victory Energy website in addition to following press releases, SEC filings and public conference calls and webcasts.

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Victory Energy Corporation is engaged in the exploration, acquisition, development, and production of domestic oil and gas properties. The company now leverages both internal capabilities and strategic industry relationships to acquire working interest positions in low-to-moderate risk oil and gas prospects. Current assets are held in partnership with Aurora Energy Partners, in which Victory has a 50% ownership interest and is the managing partner.

Future investment will focus primarily on oil or liquid-rich gas projects within longer-life reservoirs that offer lower F&D costs / BOE.

The company had nine wells on production entering FY 2011 and seventeen on production at the end of the calendar year. Acreage held as of March 2012 provides a potential pipeline of 31 additional gross wells that could be drilled. The capital budget for 2012 includes 15 of those 31 wells.  The company also has line of sight to incremental projects beyond current acreage.

The company's current producing oil and gas assets are located in the United States. Download the investor fact sheet for current summary of projects and activity.   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.

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.

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SOURCE Victory Energy Corporation