Victory Energy Corp. (OTCQB:VYEY) announced that it has obtained $36.4 million worth of bank and private placement funding via its interest in Aurora Energy Partners.
As quoted in the press release:
The Company, as controlling manager of Aurora, plans to utilize a $26.4 million credit facility from Texas Capital Bank and additional capital of up to $10 million being raised by Navitus Energy Group (Victory’s partner in Aurora), to help it rapidly grow the company through acquisitions and property development. The funding round represents a seven times multiple to the current $5 million market value of the company.
Kenny Hill, CEO of Victory, commented:
We are tremendously excited to have a bank like Texas Capital recognize the strength of our management team and the value of our growing portfolio of Permian Basin assets. This funding round is a validation of our business model and will significantly accelerate our growth. Over the past year we’ve grown our proved reserves by 85% and by utilizing this current funding round to acquire proved, producing assets, we anticipate a significant acceleration in reserve growth. As we grow, we will continue to focus on creating shareholder value by rapidly growing unconventional oil, and liquids-rich natural gas reserves on existing properties and through the acquisition of new resource properties.