Victory Energy Corporation reported the completion of its 50-to-1 reverse stock split first announced to the market on October 13, 2011.

Independent regulator FINRA (Financial Industry Regulatory Authority) approved the split on January 12, 2012. The Company's stock will begin trading on a post-split basis today.

The Board of Directors and a 60% majority of shareholders agreed that it would be in the Company's best interest to conduct a reverse split with the intent of attracting potential sources of new capital, reduce the number of outstanding shares of common stock to a level more consistent with other public oil and gas companies, and provide the management of the Company with additional flexibility to facilitate future oil and gas acquisitions. In conjunction with the reverse split, there will also be an increase in the Company's resulting authorized stock to 50 million shares, consisting of 47.5 million shares of common stock at $0.001 par value and 2.5 million shares of preferred stock at $0.001 par value.

2012 STRATEGY

Robert J. Miranda, Victory Energy's Chairman and Chief Executive Officer, today discussed the Company's 2012 organizational and business strategy:

"2011 was a major transition year for the Company. The conclusion of the reverse split dove-tails nicely into our 2012 strategic initiatives. The stage is now set for what we expect to be a very busy and exciting year. Our three primary objectives for the year ahead are to 1) increase oil and gas reserves - via drill bit and better reservoir analysis of existing assets; 2) improve returns; and 3) continue to manage and improve the Company's balance sheet. We intend to achieve those objectives through a number of near-term and longer-term initiatives.

"Reserves are a major element of our valuation and ongoing production capacity. Although we've announced several already successful multi-well drilling projects, our reserves calculations for the wells completed are still being determined. We expect to begin receiving and publishing SEC qualified reserve reports on those projects in the coming months. We also plan to better quantify and pursue incremental reserves associated with existing properties, and leverage internal technical and geological capabilities to generate new prospects. In addition, we are currently reviewing a significant pipeline of new projects for potential acquisition.

"To improve returns, we will look to reduce finding and development (F&D) costs by shifting our investment mix to include higher working interest projects with upside potential and continuing to focus on projects targeting oil and natural gas liquids. We also expect revenues to increase commensurate with higher production rates as successful wells come online. Finally, we intend to reduce general and administrative expenses through various initiatives, including the consolidation of our back office and legal functions.

"As noted previously, today's reverse stock split is a key milestone in our plans to manage and improve our balance sheet. The next step in our near-term plan is to convert all remaining convertible debentures to equity by the end of January. There will be no debt remaining on the balance sheet at that time. Going forward, we expect to leverage both private equity as well as Aurora Energy sources of capital to provide development funds," Miranda concluded.

In support of these business objectives, organizational transitions related to the positions of CEO and CFO are also in progress, as previously announced. The Company recently hired an industry veteran to serve as Chief Financial Officer. That appointment was announced in late December. The Company is continuing its search for an industry expert to serve as its Chief Executive Officer

Tags: Victory Energy Corporation