posted
Ended the day +118% at 0.07 on the biggest volume in years. Some people who are new in the company are buying in if you ask me. The next days will show if this continues.
Posts: 363 | From: Belgium | Registered: Dec 2003
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Letter to the Shareholders of Victory Capital Holdings Corporation 1/20/06
LOS ANGELES, CA, Jan 20, 2006 (MARKET WIRE via COMTEX) -- This is the first full year that I have been Chairman of Victory Capital Holdings Corp. (OTC BB: VTYC), and I would like to take the opportunity to thank Victory's shareholders and advisors who have provided me with their support during the past year. From a strategic perspective, our focus has shifted from the various opportunities evaluated during the year to a Company with designs in the energy markets, specifically the oil and gas industry.
The world has seen the impact of rising energy costs. Many of us notice this when we fill up our cars. Others see it in their home heating bills. These drastically increased prices are the result of significant increases in the price of crude oil and natural gas. Crude oil has moved from near $30 to near $70 per barrel, and natural gas from $5.00 to $14.00 per mcf. Many analysts forecast significantly higher demand and prices as we go through 2006 and into 2007. The oil and gas industry has again been identified as a tremendous growth industry.
I have spent the better part of last year using my background and network of contacts in the oil and gas industry while analyzing and pursuing several prospects for Victory. The challenge we face is not the lack of opportunities to evaluate, but rather the challenge of selecting the best opportunity to devote our time and resources. This is where our Advisory Board will play a key role, and I would again like to thank Chuck Laser for joining our Advisory Board. We are extremely fortunate that someone with his background, knowledge and expertise has chosen to support our Company. It is my plan to add individuals with a petroleum industry background to the Advisory Board as we move forward. In addition, the Company will be seeking industry leaders from the petroleum industry as well as other complementary disciplines to fill out its Board of Directors.
During the past several months, I have traveled across North America meeting with petroleum industry leaders in each segment of the market; drilling companies, lease management organizations, production companies, service companies, transportation companies, work-over rig operators, and financial institutions. Each segment has expressed an optimistic outlook for the future.
As Victory moves into the oil and gas industry, our initial plan in evaluating opportunities is to bring existing production into Victory. I have had discussions with several operators who are ready to contemplate a transaction. These operators are located in Texas, Oklahoma, and Kansas. Production fields in these states are well established and well known inside of the community of petroleum producers. More importantly, they are also well thought of by the financial community. Financial institutions with an historical background in the oil and gas industry are willing and able to finance reserves as a vehicle towards acquisition.
Another part of our plan involves remediation, the reworking of an existing well production zone through acidization or fracing. Remediation of a well can boost production in an existing zone or allow us to open other zones while targeting the initial production zone. Opening up a new zone can be accomplished at a significantly reduced cost since the major expense of casing has already been set.
We also intend to pursue the acquisition of leases which we can hold or drill depending on our resources at the time. I have walked across many acres of leaseable property these past few months including several large tracts in Nevada, Montana, Utah, Wyoming and Colorado. Two of these acreages may have the potential to be larger than many international discoveries and existing producing fields. I envision partnering with other operators to acquire parcels this large. We have good relationships with the existing leaseholders and can position ourselves to maintain a lead role in the development of this strategy.
Another key strategy for our Company is a drilling program for in-field drilling verses wildcatting. We are currently evaluating for acquisition operators that have ongoing drilling programs. In-field drilling is important to sustaining growth while at the same time reducing risk. As the situation allows, we will participate in small percentages of larger opportunities. For example, we may become involved in larger fields later on where another operator serves as the production management organization. This will enable us to pursue a greater number of opportunities and spread our risk.
We are also evaluating opportunities that exist in underutilized or non-operational refinery facilities. I have spent several days walking the operational bases of some smaller refinery operations and believe that an asset of this magnitude can be added to the Company under the proper circumstances. To have the Company involved as an integrated producer and refiner of crude oil is the ultimate goal.
Victory enters 2006 with a renewed energy. We have been working to put in place the fundamentals that will allow the Company to deliver strong results this year. Key strategies will provide a sound road map for the future with sustainable growth being the central theme in the strategy. Our primary goal is to yield results for our shareholders. We believe 2006 will be a time for positive change at Victory and we expect to deliver on our goals by following our strategy and growing the Company in a manner that maximizes growth in shareholder value.
Thank you for your continued support of your Company.
Jon Fullenkamp Chairman & CEO Victory Capital Holdings Corporation For more information, contact: Lynne Folks Investor Relations 949-348-0213
SOURCE: Victory Capital Holdings Corporation
Copyright 2006 Market Wire, All rights reserved.
-------------------- Trading is a blast!! Posts: 4921 | From: Rhode Island | Registered: May 2005
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