Victory Energy Corporation, through its partnership with Aurora Energy Partners, reported the sale of its interests in the Jones County Oil Play and Atwood Secondary Oil Recovery projects for $400,000 in cash. As a result, the Company expects to recognize a pre-tax gain on the sale of $267,000 when it reports second quarter 2012 results. Victory had a 5% working interest (3.75% net revenue interest) in Jones County and a 2% working interest (1.58% net revenue interest) in Atwood.
Kenny Hill, Victory Energy's CEO, stated, "This sale fits nicely into our strategy of moving toward higher working interest projects and focusing on drilling more oil and natural gas liquids wells, with estimated ultimate recovery rates over 100,000 barrels of oil equivalent. We had an offer to monetize our interests at an attractive valuation, and we took advantage of that opportunity. Management is confident that we can put this money to work immediately and more effectively at our high value Lightnin' prospect."