There is no better feeling then when your well comes in. Natural gas, oil or minerals; when the valve is finally turned, eyes begin to light up and corks begin to pop. If ever there was a non-monetary reason for getting into natural resources exploration this would be it.
Victory Energy Corporation, a development stage oil and gas company, works to develop and bring to market gas and oil discoveries in the United States. Currently, the company is finding very profitable discoveries of natural gas in its Texas lease properties. On February 27, 2007 the company announced that its Addams-Bagget Canyon gas property in Crockett Country, TX had been brought on line and is flowing on its own. Further, the company indicated that the well has been tied into transit systems and is generating revenue.
The Crockett gas field location is considered the sixth largest gas formation in the world. The company has 5 lease options in the field and expects to take advantage as quickly as possible. Proven reserves in the region indicate 500 million cubic feet of gas per well, giving the company access to proven reserves of 2.5 billion cubic feet of natural gas. Considering that this field is generally considered shallow depth, accessing proven reserves should be cost effective, especially in a market where natural gas prices are very high by any measure. With favorable weather conditions, the company appears ready to take advantage of what is left of the 2008 heating season and the coming 2009 heating season.
Taking a wide view of the energy markets, the company has future expectations of entering alternative energy production and offering pollution credits. The market for pollution credits is a largely “quiet” area of operation between companies but nonetheless a profitable one if approached in the correct manner. The management of Victory Energy Corporation appears to have personnel and experience in place that is familiar with this marketplace and indicates that it will pursue it as it does other options, prudently. This can be illustrated by the company’s willingness to walk away from projects that it feels do not meet time and revenue schedules. One such project in Montana could be used as an example.
From all indications, the company looks to have its timing exactly right for solid growth potential. It has a producing well in a known and proven field with exceptional reserves. It has additional leases approved to take advantage of these reserves. It has a plan for future diversification within its chosen market and it has experienced people to make it happen.
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