Victory Energy Corp. (OTC: VYEY) said July 2 that its subsidiary Aurora Energy Partners completed its acquisition of a 10% stake in the West Texas Permian Basin’s Fairway Project.
Perth, Australia-based Target Energy Ltd. (ASX: TEX.AX, OTC: TEXQY) sold the stake for US$5.8 million, Victory said.
"We are extremely pleased to acquire a 10% interest in such a high quality producing asset," stated Kenny Hill, Victory’s CEO.
"This acquisition adds approximately 64 boe per day to our interest and provides approximately 40 additional drilling locations for future development. Since the May 1st effective date, three additional wells have begun and are in various stages of completion. In addition, at least three more wells are on the drilling schedule for the August through September time frame. Together, these six 2014 well additions should more than double the 64 boe of current daily production to our interest," he added.
Aurora signed the purchase and sale agreement on June 30, the company said, noting that the deal’s closing was split into two parts. In the first part, Aurora paid $2.5 million to Target Energy, which gave Aurora a 10% working interest in its Darwin, BOA and Wagga Wagga production leases, among others, Victory said.
The second closing is scheduled for July 31, Victory said, noting that Aurora will pay a $3.3 million outstanding balance to Target Energy.
Austin, Texas-based Victory Energy Corp. is the managing partner of Aurora Energy Partners, holding a 50% partnership interest. Victory also holds interests in the Permian Basin.
Recommended Reading
Sangomar FPSO Arrives Offshore Senegal
2024-02-13 - Woodside’s Sangomar Field on track to start production in mid-2024.
NAPE: Chevron’s Chris Powers Talks Traditional Oil, Gas Role in CCUS
2024-02-12 - Policy, innovation and partnership are among the areas needed to help grow the emerging CCUS sector, a Chevron executive said.
CNOOC Makes 100 MMton Oilfield Discovery in Bohai Sea
2024-03-18 - CNOOC said the Qinhuangdao 27-3 oilfield has been tested to produce approximately 742 bbl/d of oil from a single well.
TPH: Lower 48 to Shed Rigs Through 3Q Before Gas Plays Rebound
2024-03-13 - TPH&Co. analysis shows the Permian Basin will lose rigs near term, but as activity in gassy plays ticks up later this year, the Permian may be headed towards muted activity into 2025.
Proven Volumes at Aramco’s Jafurah Field Jump on New Booking Approach
2024-02-27 - Aramco’s addition of 15 Tcf of gas and 2 Bbbl of condensate brings Jafurah’s proven reserves up to 229 Tcf of gas and 75 Bbbl of condensate.