Victory Energy reported the purchase of an ownership interest in an oil and gas lease in the Southern United States.
Victory Energy is acquiring a 5.25% working interest in a 240 acre lease at the North Killarney oil prospect in Adams County, Mississippi. The company’s net revenue interest in the prospect is 3.938%.
Victory Energy said that a well is scheduled to be drilled on the lease within the next thirty days. The Armstrong NK #1well will target the McKittrick or Wilcox Sand formation with the Sparta zone as a secondary objective. The total cost to the company for drilling and testing the Armstrong NK #1well is estimated at $20,000.
The McKittrick Sand formation in highly permeable and does not require hydraulic fracturing like many of the shale and unconventional oil and gas formations in the onshore area of the United States.
Victory Energy estimates that the Armstrong NK #1 well has a gross reserve potential of 1.5 million barrels of oil. This estimate assumes 550 barrels of oil per acre foot of reservoir.
Victory Energy recently increased the company’s ownership of an oil and gas lease in Jones County and now has a 5% working interest. The company plans to drill two prospects here in October 2011.
For more information on the company, go to www.victoryenergyoilandgas.com
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