Victory Energy Corp. (OTCQB:VYEY) announced the completion of the first of nine development wells that it is drilling in partnership with Aurora Energy Partners at its New Mexico-based Pinetop prospect, commenting that commercial flows were significant.
As quoted in the press release:
The objective zone was drill stem tested with initial gross flow rates of over 400 barrels of oil per day and unmetered flow of 300 Mcf of natural gas per day. The well is now flowing oil to tanks at a rate of approximately 7,680 barrels of oil and 16,890 MCF of natural gas per month. Gas is currently being vented until a pipeline to sales connection is made. The Company expects the first well to be on production for at least three months before a decision is made to drill up to eight additional gross development wells on the held acreage.
Pre-drill gross recoverable reserve potential per well was estimated at 350,000 BOE to 450,000 BOE, with total recoverable reserve potential of 3,150,000 BOE to 4,050,000 BOE (9 wells). Based on these assumptions, total recoverable reserve potential to the Company’s 2.344% net revenue interest could be 73,836 BOE to 94,932 BOE. In the coming months, Victory will commission a third party reserve analysis on this property which will contain more specific reserve estimates.