(OTCQX: VYEY) A Public Pure Play Permian Basin Company September 2014
Company Profile High growth oil and gas E&P company focused on Victory is growing cash-flows through sustainable creating shareholder value through the acquisition and low-risk vertical well development and acquisitions development of…
Investor Highlights Public-Pure-Play-Permian Focused company Early stage rapid-growth company Oil and liquid rich gas focus, growing reserves and cash flow Experienced management team and operators Asset value upside PUD,…
Business Model Low-risk vertical well development on existing and acquired properties. Focus on well-known basins with break-even points below 55 per barrel of oil. 1 Locate multi-well drilling opportunities that provide three or more…
2014 Strategic Financial Deliverables Deploy 15 million of new capital towards E&P development and acquisitions Create more than 30 million in proved reserves INCREASE Target longer-life, quality prospects with improved PUD…
Established Capital Sources for Sustained Growth Financial relationship established in October 2011 Members include sophisticated investors & boutique private equity AURORA ENERGY 10 M private placement now underway (Navitus…
Why Focus on the Permian Basin The play is the largest oil field in the U.S. (Baker-Hughes rig count & Pioneer recoverable resources). 1,2 Predictable vertical well economics deliver break-even points at less than 55 per bbl (Midland…
Diversified Permian Basin Portfolio Fairway Project (Proved Producing) Glasscock & Howard Counties 80% oil, 20% gas 4,050 gross acres At least 40 more drilling locations with 80 acre spacing 10% WI / 7.5% NRI Fusselman &…
Permian Oil Focus is Driving 2014 Results Histo r ical An n u al Reven u e Gr owth 2014 B OE Per Day Exit Volu m es Ou tlook 2014 Target: 175 1,163,828 150 1,200,000 150 1,000,000 125 735,413 800,000 100 600,000 75 64 305,180…
2014 Reserve Acceleration Underway Seven M o n th Acceler atio n in 2014 PV-10 Reser ves Gr owth 4,000 10,000 9,930,370 830,160 3,937,270 9,000 3,500 565,030 8,000 3,000 105,938 7,000 2,422,100 54,042 YE 2014 2,500 Guidance…
Fairway is in the Heart of the Tier 1 Zone Fairway Source: Pioneer 2013, 3Q Report 13
Fairway 4,050 Acre Economic Plan & Assessment The company plans to grow reserves through drilling, improve the propertys current cash-flow and drive up property valuation via a three year or shorter development plan Total three year…
Fairway Geology Offers Stacked Pay Upside Both the Fusselman and Wolfberry formations are productive in the acreage Potential for future Cline development as nearby horizontal completions improve 15
2014 Acquisition and Development Plan 1. Drill and complete undeveloped leasehold on current high-value properties 2. Sell properties with limited development upside and re-deploy capital to properties with higher production and more…
Experienced E&P Management Kenneth Hill (CEO) David McCall (General Counsel, Director) Served as Victorys COO from Jan. 2011 Jan. 2012. Over 35 years of oil and gas industry law centered on the upstream, 21 years of professional…
Investment Summary Proven management team with over 175 years of combined oil and gas experience Predictable IRRs offered by the largest resource play in the U.S. (Permian Basin) Significant access to proved producing properties and…
Contacts Victory Energy Corporation Kenneth Hill, CEO Email: Kennyvyey.com Phone: (512) 347-7300 www.vyey.com Investor Relations Derek Gradwell Senior Vice President, Natural Resources MZ North America Main: 212-301-7130…
(OTCQX: VYEY) Appendix and Support Material
Review of Significant Properties
Fairway (Proved and Producing) Description Vertical Well Economic Summary Acquired June 2014 (over 4,560 acres) Well cost to the 100% 1.8M to 2.1M Located in Glasscock and Howard County, TX Working Interest 10% Conventional drilling…
Fairway is in the Heart of the Tier 1 Zone Source: Pioneer 2013, 3Q Report 23
Bootleg Canyon (Proved and Producing) Description Vertical Well Economic Summary Acquired April 2011 (over 5,000 acres) Well cost to the 100% 1.55M Located in Pecos County, TX Working Interest 5% Conventional drilling play…
Adams Baggett Gas Field (Proved and Producing) Description Per Well Economics Acquired 2008 (180 acres) Well cost to the 100% 600K Located in Crockett County, TX Working Interest in 7 wells 100% High Btu natural gas production o Net…
Chapman Ranch (Proved and Producing) Description Per Well Economics Acquired in April 2012 (320 acres) Well cost to the 100% 1.2M Located in Nueces County, TX. Working Interest 5% Conventional drilling play (vertical) Net Revenue…
Permian Basin Data
Largest U.S. Oil Fields 28
Predictable Economics Deliver Predictable Outcomes Our current focus is on vertical wells with 49 - 55 WTI Oil Price Break Even Estim ated In ter n al Rates o f Retu r n * S&Ps Estim ated B r eak Even WTI Oil Pr ice* US/Barrel 35%…
Permian Dominance in Rig Count 30
Vertical Activity Growing, Horizontal Activity Less Than Half 31
VYEY Horizontal Decision Metrics (Best Cost Curve Drives Choice) Low Finding and Development Costs Deploy capital in the sweet spot Completion techniques for optimal EUR and lower drilling costs provide more predictable returns…
Opportunity for Secondary Development The Permian is also attractive because it has multiple pay zones some of which are extremely amenable to horizontal drilling (Develop vertical now, horizontal later) Clear Fork Most Permian…
Loading...
