Oil prices are rallying after the tragedies of Hurricanes Harvey and Irma, yet total domestic production jumped by 572,000. The outpouring of recent data underscores the uncertain forecast for the oil market going forward. For most companies, this fluctuating environment would cause anxiety, but for a disciplined team like Viking Energy Group Inc. (VKIN), it plays directly into their hands.

The conservative exploration and production company with a knack for finding long-life and low-cost oil properties has been at it again. Recently, Viking Energy acquired four additional oil and gas leases inside the company’s familiar wheelhouse: Eastern Kansas.

Through their wholly owned subsidiary, Mid-Con Drilling, Viking purchased 980 acres of oil and gas wells in Anderson County, Kansas. The new leases produce oil from the Cherokee Formation – an important group of sandstones, limestones, shales and coal bed outcroppings in Eastern Kansas – at 850 feet, with the prospect for more drilling in the future. In addition, the purchase includes an undivided interest in all oil and gas wells, equipment, fixtures and other personal property located upon the leased properties and used in connection with oil and gas operations. According to the release, Viking’s share of existing production from the acquired interests is approximately 13.5 barrels of oil per day. The new leases will be operated by Viking’s existing operator of record in Kansas, S&B Operating, LLC, a subsidiary of Kansas Resource Development Company, a premium operator in the region that specializes in development programs.

Moreover, through Mid-Con, Viking owns between a 68% and 100% interest in producing oil leases, with access to the oil and gas rights spanning 800 acres in Eastern Kansas along with access to equipment and other property similar to the deal above. Six new wells were drilled and brought online this summer on one of the company’s leases, which has several additional drillable sites on the property.

In Missouri, Viking owns a 100% working interest in multiple leases, with access to the oil and gas rights covering thousands of acres in oil and gas-rich Cass and Bates counties. However, in different states, Bates County, Missouri is less than an hour drive from Miami County, Kansas.

Beyond the United States, Viking owns a 50% working interest in the Joffre D-3 Oil Project, consisting of four oil wells and a water injection well in Alberta, Canada through a joint venture with Tanager Energy.

To dive deeper, in June, the company released news that it was in final negotiations for a $25 million deal to buy a private oil and gas company that would give them working interest in 12 oil and gas fields with current production levels at 1,200 barrels of oil equivalent per day (25% oil). Already the company is aiming to produce 1,000 BOEPD by year-end, and, coupled with an additional 1,200 BOEPD, this would equal 2,220 barrels per day, totaling 803,000 annually. With those numbers and at median prices, Viking would net significantly more than $30 million in annual production.

With strong positions in Kansas, Missouri and Canada, Viking is growing – those looking for further proof can check the company’s uplisting to the OTC Markets this summer – and the most recent acquisition is just another domino falling in the company’s larger execution strategy.

“When we assess acquisition opportunities, we consider a number of factors before determining if it’s something we want to pursue,” CEO James Doris told Equities.com back in May. “The particular project not only has to be producing oil but also generating positive cash flow at today’s prices, and have development upside. We look at current production, the reserves, cash-flow, decline curves, the basin, target zones, and overall lifting costs. A number of people provide input on any acquisition target, including representatives of the operator, engineers, geologists, and other oil and gas investors. We then collectively make a decision on how we want to proceed.”

“Kansas and Missouri is our initial focus,” Doris continued. “That is where we have our extensive relationships, and our plan is to leverage those relationships and continue to aggregate assets in those areas. We’ll focus on where it’s been proven that the oil is there and where there is a high success rate for drilling, and, relative to the other drilling programs in other markets, its low cost.”

Doris and his team know what they are doing. Demonstrated in the quote above, Viking Energy understands who they are and they stick to proven philosophies that work. Investors can expect more exciting milestones from this company before the year is out.

For more information, visit http://www.vikingenergygroup.com/


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