Newport Beach, CA, March 30, 2011 – Victory Energy Corporation (Pinksheets:VYEY - News), an oil and gas exploration and development company, today announced that On March 22, 2011, the Company, James Capital Energy, LLC, and other related parties entered into a comprehensive Settlement Agreement with Jon Fullenkamp, the Company's former Chairman and CEO. Under the terms of the settlement agreement, Mr. Fullenkamp will: i) dismiss with prejudice the lawsuit he filed against the Company and others in California; ii) transfer to Victory Energy two million shares of Victory Energy preferred stock; iii) transfer to Victory Energy 400 thousand warrants for Victory Energy common stock; iv) transfer to James Capital Energy, LLC approximately 16 million shares of Victory Energy common stock; v) voluntarily appear for his deposition to discuss events that occurred at the Adams-Baggett Ranch; vi) waive the claim he had to a $430 thousand severance payment under his May 15, 2009 separation agreement; and vii) provide Victory Energy and other related parties with a general release.
About Victory Energy Corporation:
Victory Energy Corporation is engaged in the exploration, acquisition, development, and exploitation of oil and gas properties. The Company's current producing assets are located in the state of Texas.
Victory Energy seeks to identify proven development prospects, conduct thorough geological and engineering evaluations and then target suitable farm-in partners for long term development of additional prospects.
For more information, please visit our website www.vyey.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
There are forward-looking statements contained in this news release. They use such words as "intend," "will," "may," "expect," "believe," "plan," or other similar terminology. These statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results to be materially different than those expressed or implied in such statements. These factors include, but are not limited to: risks associated with the implementation of the Company's strategic growth plan; legislation and government regulation including the ability to obtain satisfactory regulatory approvals; conditions beyond the Company's control such as weather, natural disasters, disease outbreaks, epidemics or pandemics impacting the Company's customer base or acts of war or terrorism; availability and cost of materials and labor; demand for natural gas; cost and availability of capital; competition; the Company's overall marketing, operational and financial performance; economic and political conditions; the continued service of the Company's executive officer; adverse developments in and increased or unforeseen legal costs related to the Company's litigation; the success of the Company's strategic partnerships and joint venture relationships; the Company's ability to pay certain debts; adoption of new, or changes in, accounting policies and practices; adverse court rulings; results of other litigation in which the Company is involved; and other factors discussed from time to time in the Company's news releases, public statements and/or filings with the Securities and Exchange Commission. Forward-looking information is provided by Victory Energy Corporation pursuant to the safe harbor established under the Private Securities Litigation Reform Act of 1995 and should be evaluated in the context of these factors. In addition, the Company disclaims any intent or obligation to update these forward-looking statements.
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