Current Project

Current Project


Victory Production Company, LLC controls two attractive leasehold positions in McKean County Pennsylvania (600 & 1300 acres respectively). Our acreage is in the hydrocarbon window (liquid-rich gas) of the prolific Marcellus and Utica shale trends and offers great promise. We may also acquire another 10,000 contiguous acres surrounding our block in Warren County and another 20,000 acres surrounding our McKean County position.

There is significant drilling activity to the north, east, and south of our area. Shell is one of the most active players.

Victory Production has already proven the commercial viability in the Marcellus by drilling and testing a vertical well in our leasehold in McKean County.

Our current plan is to drill another well in McKean County to penetrate both the Marcellus and the Utica Formation (approximately 4000 feet below Marcellus).

The well will be cored (rotary) and logged in both the Marcellus and the Utica . Having reached TD, the well will be plugged back, drilled and tested horizontally in the Marcellus Formation or Utica Formation, whichever is more promising.

Advanced horizontal drilling and hydraulic fracking techniques and proximity to the East Coast gas market make the Marcellus and the Utica two of the most attractive shale plays in the country in terms of overall returns.

The Marcellus is projected to cash flow positive in 12 months and the Utica in 6 months respectively. Additional drilling will increase economies of scale to further reduce capital payback periods.

Investment Opportunity and Attractions

Participation in 2 of the most attractive shale plays in the United States – Marcellus and Utica – where we recently successfully drilled and tested a vertical well in the Marcellus in our McKean County lease area.

Current plan is to strategically drill a delineation well on our lease area to determine the productivity of both the Marcellus and the Utica Formations and prove up the value of the lease area.

The well will be drilled vertically through the Utica, with rotary cores in the Marcellus and the Utica. In addition, the well will be evaluated and completed in the Formation most attractive. The completion will include a horizontal sidetrack, high quality frac job, tested, and then put on production.

Successful results from the well opens up a potential for a large successful drilling expansion by exercising an option on 4,000 acres in McKean County, Pennsylvania. Another 30,000 acres are available from owners who desire to lease and/or participate with non-major oil and gas operators.

Total investment of $ 4.2 MM for drilling, completing, testing and putting well on production in the Marcellus and $6.8 MM, if completed in the Utica. Not including lease cost.