Victory Energy has positioned themselves with institutional investments that are willing to foot the bill as time to market is critical. Gas & Oil prices are at significantly higer levels than a year ago. As these well are put into place, at the rate of 4 per month, each and every one will provide Victory Energy with substancial revenue growth. Obviously these institutional investors are taking their cut but it allows VYEY to grow its company fast without major dilution. The revenue numbers are staggering when you do the math even if VYEY is taking a percentage. Mix that in with the longetivy of many of these wells(30 years) and you have long term revenues with expenses dissapearing after the initial installation of each well.
It appears to me that millions of shares are turning over and changing hands at .22; The support. Simple Supply & Demand dictages that soon there will be a shortage of supply(sellers) and Price will once again resume its upward momentum. Remember there are very few shares outstanding and even less shares float. I believe we start moving up very shortly with the help of the multple updates a week the company gives us on its money makers. Each new PR gives us details of a new revenue producing well that has been put into production. What they are doing now is the quickest and most efficient way of adding value to shareholders.
The new deep wells that will be put into production will be producing 1.5 BCF & 5 BCF NG respectively. Thats a lot of gas! Considering the initial investment VS. the long term revenue production, there is no question in my mind that PPS will be trading at a much higher number very soon; $1 within 30 to 60 days.
Don't forget about the petrolum play which puts 10,000,000 on the books for VYEY. I believe they get about 15% of 74% of net revenues initially and then 25% of 74% as they pay off initial investment costs. This company is starting to make big bucks even as they are probably putting up little initial investment(low expenses).
I disagree with one main point. Your assertion of the 1.5 and 5 flow for the deep wells. This is merely speculation. Until the well is planked and capped, no one knows. We'll know about 166-8 on Monday. My only fear is share dilution. If they start issuing new stock like toilet paper, as many micro caps do, this is doomed. A 30 mil float is great, and just one or two proven producing wells should push this to well over 60 cents. After July 2008, I see $1.00, provided the float stays intact.