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.
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