VTCY: Victory Executes Offer to Purchase With Thunder Oil & Gas
Tuesday January 24, 9:30 am ET
LOS ANGELES, CA--(MARKET WIRE)--Jan 24, 2006 -- Victory Capital Holdings Corporation (OTC BB:VTYC.OB - News) announced today that it has signed an Offer to Purchase the Yellowstone Prospect from Thunder Oil & Gas, LLC, an Oklahoma based oil and gas producer. The closing of the transaction is subject to customary due diligence and other closing conditions, and is expected to take place on or before June 1, 2006.
The Yellowstone Prospect produces from the Mississippi Lime, Dolomite, and Oswego Lime formations. The area consists of approximately 4,300 gross acres located in Northwest Oklahoma and Southern Kansas in Woods County, Oklahoma and Barber County, Kansas. There are 25 producing wells with the majority of the production in natural gas. On-going development is occurring at this time. Originally, the Prospect was drilled on 640 acre spacing, and is now being drilled on 160 acre spacing. Currently there are approximately four additional infill drill locations. The possibility exists to increase the well density to 80 acre spacing.
Harry Spring of Thunder Oil & Gas commented, "These properties, which represent a portion of our core holdings, have produced significant volumes of natural gas in the past and shall continue to do so in the future. The properties have proven long term reserves and further development by infill drilling and remedial workovers will only enhance the opportunity for even greater future production and revenues."
"After researching many of the opportunities available to Victory I am very pleased we were able to come to an agreement with Thunder Oil & Gas to purchase their interest in the Yellowstone Prospect. This offers Victory excellent, stable production revenues as this production area and production zones have been historically recognized for the ability to provide long term steady production. In addition, there is room for expansion with more wells to be drilled as well as remedial work which can be done on the existing production zones to increase volumes," said Jon Fullenkamp, CEO of Victory Capital Holdings Corp.
About Victory Capital Holdings Corp: Victory Capital Holdings Corporation (http://www.vtyc.com)
is a publicly traded company primarily dedicated to energy related opportunities in the energy sector. 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.