The company said that it has established a financial facility with institutional investors providing drilling funds to the company for the further development of the Adams ranch properties. This facility provides for direct participation by the investors in the production of the completed wells.
The ‘Canyon Sandstone’ gas zone located on this ranch is part of the large prolific Adams-Baggett Canyon Sandstone gas field. The Canyon Sandstone formation is found at a depth of 4,300 feet to 4,900 feet. Initial production for these wells is approximately 250,000 cubic feet of gas per day per well. The success rate for commercially producing gas wells in this area is over 97%, the company said.
Jon Fullenkamp, president of Victory Energy, said: The drilling rig reached total depth Friday, log results of the well show excellent commercial potential in the target production zone. The stimulation/fracture work has already been scheduled to bring the well into production. It is anticipated that this process will be completed by the third week in February.
