**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

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**FORM          10-QSB/A**

**Amendment          #1**

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**June      30, 2006**

***2-76219-NY***

**VICTORY      ENERGY CORPORATION**

| **NEVADA**                                                                        | **87-0564472**                                 |
|---------------------------------------------------------------------------------------------|------------------------------------------------|
| (State                  or other jurisdiction of incorporation or organization)   | (I.R.S.                  Employer I.D. Number) |

**27762      Antonio Parkway, Suite L1-497, Ladera Ranch, CA 92694**

**(866)      279-9265**

**Victory      Capital Holdings Corporation**

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**INDEX**

|                                                                                                                | **Page                No.** |
|---------------------------------------------------------------------------------------------------------------------|-----------------------------|
|                                                                                                                |                        |
| **PART                1. FINANCIAL INFORMATION**                                                                    |                        |
|                                                                                                                |                        |
| Item                1. Financial                Statements                                           | 3                           |
|                                                                                                                |                        |
| Consolidated                Balance Sheet, June 30, 2006 (unaudited)                and                             |                        |
| December                31, 2005 (audited)                                                                | 3                           |
|                                                                                                                |                        |
| Consolidated                Statement of Operations, for the three months                ended June 30, 2006        |                        |
| and                2005, for the six months ended June 30, 2006 and 2005,                and cumulative             |                        |
| from                inception to June 30, 2006 (unaudited)                                                | 4                           |
|                                                                                                                |                        |
| Consolidated                Statement of Stockholders’ Equity                (Deficit) for the period from    |                        |
| January                7, 1982 (inception) through June 30, 2006                (unaudited)               | 5                           |
|                                                                                                                |                        |
| Consolidated                Statements of Cash Flows, for the three months                ended                     |                        |
| June                30, 2006 and 2005, for the six months ended June 30,                2006 and 2005,              |                        |
| and                cumulative from inception (Jan. 7, 1982) to June 30, 2006                (unaudited)   | 6                           |
|                                                                                                                |                        |
| Notes                to Condensed Financial Statements (unaudited)                                        | 7                           |
|                                                                                                                |                        |
| Item                2. Management’s                Discussion and Analysis or Plan of Operation     | 11                          |
|                                                                                                                |                        |
| Item                3. Controls                and Procedures                                             | 12                          |
|                                                                                                                |                        |
| **PART                II. OTHER INFORMATION**                                                                       |                        |
|                                                                                                                |                        |
| Item                1. Legal                Proceedings                                                   | 13                          |
|                                                                                                                |                        |
| Item                2. Unregistered                Sales of Equity Securities and Use of Proceeds         | 13                          |
|                                                                                                                |                        |
| Item                3. Defaults                Upon Senior Securities                                | 13                          |
|                                                                                                                |                        |
| Item                4. Submission                of Matters to a Vote of Security Holders            | 13                          |
|                                                                                                                |                        |
| Item                5. Other                Information                                              | 13                          |
|                                                                                                                |                        |
| Item                6. Exhibits                and Reports on Form 8-K                               | 14                          |

----

**Item      1. Financial Staements**

| VICTORY                ENERGY CORPORATION AND SUBSIDIARIES                                                           |   |    |                    |   |   |    |                        |   |
|----------------------------------------------------------------------------------------------------------------------|--------|---------|-------------------------|--------|--------|---------|-----------------------------|--------|
| (A                Development Stage Company)                                                                         |   |    |                    |   |   |    |                        |   |
| Consolidated                Balance Sheets                                                                           |   |    |                    |   |   |    |                        |   |
|                                                                                                                 |   |    |                    |   |   |    |                        |   |
|                                                                                                                 |   |    |                    |   |   |    |                        |   |
| **ASSETS**                                                                                                           |   |    |                    |   |   |    |                        |   |
|                                                                                                                 |   |    | June                30, |   |   |    | December                31, |   |
|                                                                                                                 |   |    | 2006                    |   |   |    | 2005                        |   |
|                                                                                                                 |   |    | (Unaudited)             |   |   |    |                        |   |
| CURRENT                ASSETS                                                                                        |   |    |                    |   |   |    |                        |   |
|   Cash                and Cash                Equivalents                                                  |   |  $ |                    |   |   |  $ | 4,074                       |   |
|   Note                Receivable                                                                           |   |    | 210,984                 |   |   |    | 88,300                      |   |
|     Total                Curent Assets                                                           |   |    | 210,984                 |   |   |    | 92,374                      |   |
|                                                                                                                 |   |    |                    |   |   |    |                        |   |
| FIXED                ASSETS, NET                                                                                     |   |    | 497                     |   |   |    | 1,096                       |   |
|                                                                                                                 |   |    |                    |   |   |    |                        |   |
| OTHER                ASSETS                                                                                          |   |    |                    |   |   |    |                        |   |
|   Investment                in Joint                Venture                                                |   |    | 50,000                  |   |   |    | -                           |   |
|                                                                                                                 |   |    |                    |   |   |    |                        |   |
|     TOTAL                ASSETS                                                                  |   | $       | 261,481                 |   |   | $       | 93,470                      |   |
| **LIABILITIES                & STOCKHOLDERS' DEFICIT**                                                           |   |    |                    |   |   |    |                        |   |
|                                                                                                                 |   |    |                    |   |   |    |                        |   |
|                                                                                                                 |   |    |                    |   |   |    |                        |   |
| CURRENT                LIABILITES                                                                                    |   |    |                    |   |   |    |                        |   |
|                                                                                                                 |   |    |                    |   |   |    |                        |   |
|   Bank                Overdraft                                                                            |   | $       | 2,082                   |   |   | $       | -                           |   |
|   Accounts                Payable                                                                          |   |    | -                       |   |   |    | 330,970                     |   |
|   Accrued                Liabilities                                                                       |   |    | 16,006                  |   |   |    | 11,416                      |   |
|   Accrued                Payroll                                                                           |   |    | 690,970                 |   |   |    | 240,000                     |   |
|   Prepaid                Subscriptions                                                                     |   |    | 203,500                 |   |   |    |                        |   |
|     Total                Curent Liabilities                                                      |   |    | 912,558                 |   |   |    | 582,386                     |   |
|                                                                                                                 |   |    |                    |   |   |    |                        |   |
| LONG                TERM LIABILITIES                                                                                 |   |    |                    |   |   |    |                        |   |
|   Notes                Payable                                                                             |   |    | 149,458                 |   |   |    | 146,431                     |   |
|                                                                                                                 |   |    |                    |   |   |    |                        |   |
| OTHER                LIABILITIES                                                                                     |   |    |                    |   |   |    |                        |   |
|   Loan                from                Officer                                                          |   |    | 200,031                 |   |   |    | 83,367                      |   |
|   Account                Payable -                Related Party                                            |   |    | 169,679                 |   |   |    | 172,179                     |   |
|   Accrued                Liabilities                - Related                                              |   |    | 121,000                 |   |   |    | 121,000                     |   |
|     Total                Other Liabilities                                                       |   |    | 490,710                 |   |   |    | 376,546                     |   |
|                                                                                                                 |   |    |                    |   |   |    |                        |   |
|     Total                Liabilities                                                             |   |    | 1,552,726               |   |   |    | 1,105,363                   |   |
|                                                                                                                 |   |    |                    |   |   |    |                        |   |
| Commitments                and contingencies (Note 6)                                                                |   |    |                    |   |   |    |                        |   |
|                                                                                                                 |   |    |                    |   |   |    |                        |   |
| STOCKHOLDERS'                DEFICIT                                                                                 |   |    |                    |   |   |    |                        |   |
| Common                Stock, $0.001 par value, 200,000,000 shares                                                    |   |    |                    |   |   |    |                        |   |
|   authorized,                67,543,592 issued                and outstanding                         |   |    | 67,544                  |   |   |    | 41,960                      |   |
| Additional                paid-in capital                                                                            |   |    | 3,544,020               |   |   |    | 2,692,104                   |   |
| Deficit                accumulated in the development stage                                                          |   |    | (4,902,809              | )      |   |    | (3,745,957                  | )      |
|                                                                                                                 |   |    |                    |   |   |    |                        |   |
|     Total                Stockholders' Deficit                                                   |   |    | (1,291,245              | )      |   |    | (1,011,893                  | )      |
|                                                                                                                 |   |    |                    |   |   |    |                        |   |
| TOTAL                LIABILITIES AND STOCKHOLDERS' DEFICIT                                                           |   | $       | 261,481                 |   |   | $       | 93,470                      |   |
|                                                                                                                 |   |    |                    |   |   |    |                        |   |
|                                                                                                                 |   |    |                    |   |   |    |                        |   |
| The                accompanying notes are an integral part of these consolidated financial                statements |   |    |                    |   |   |    |                        |   |

----

| VICTORY                  ENERGY CORPORATION AND SUBSIDIARIES                                                              |   |   |                                |   |   |                              |   |   |                             |   |   |       |   |   |                            |   |   |
|---------------------------------------------------------------------------------------------------------------------------|--------|--------|-------------------------------------|--------|--------|-----------------------------------|--------|--------|----------------------------------|--------|--------|------------|--------|--------|---------------------------------|--------|--------|
| (A                  Development Stage Company)                                                                            |   |   |                                |   |   |                              |   |   |                             |   |   |       |   |   |                            |   |   |
| Consolidated                  Statement of Operations                                                                     |   |   |                                |   |   |                              |   |   |                             |   |   |       |   |   |                            |   |   |
| (Unaudited)                                                                                                               |   |   |                                |   |   |                              |   |   |                             |   |   |       |   |   |                            |   |   |
|                                                                                                                      |   |   |                                |   |   |                              |   |   |                             |   |   |       |   |   |                            |   |   |
|                                                                                                                           |   |   |                                |   |   |                              |   |   |                             |   |   |       |   |   | For                  the period |   |   |
|                                                                                                                      |   |   |                                |   |   |                              |   |   |                             |   |   |       |   |   | of                  Inception,  |   |   |
|                                                                                                                           |   |   | For                  the            |   |   | For                  the          |   |   | from                  January 2, |   |   |
|                                                                                                                           |   |   | Three                  Months Ended |   |   | Six                  Months Ended |   |   | 1982                  through    |   |   |
|                                                                                                                      |   |   | June                  30,      |   |   | June                  30,         |   |   | June                  30,        |   |   |
|                                                                                                                      |   |   | 2006                                |   |   | 2005                              |   |   | 2006                             |   |   | 2005       |   |   | 2006                            |   |   |
|                                                                                                                      |   |   |                                |   |   | (Restated)                   |   |   |                             |   |   |       |   |   |                            |   |   |
|                                                                                                                      |   |   |                                |   |   |                              |   |   |                             |   |   |       |   |   |                            |   |   |
| Revenues                                                                                                                  |   | $      | -                                   |   | $      | -                                 |   | $      | -                                |   | $      | 32,207     |   | $      | 20,207                          |   |   |
|                                                                                                                      |   |   |                                |   |   |                              |   |   |                             |   |   |       |   |   |                            |   |   |
| Costs                  and Expenses                                                                                       |   |   |                                |   |   |                              |   |   |                             |   |   |       |   |   |                            |   |   |
|                                                                                                                      |   |   |                                |   |   |                              |   |   |                             |   |   |       |   |   |                            |   |   |
| Consulting                  Expense                                                                                       |   |   | 142,575                             |   |   |                              |   |   | 742,815                          |   |   | 310,136    |   |   | 3,482,407                       |   |   |
| Land                  Leases                                                                                              |   |   | (960                                | )      |   |                              |   |   | 24,040                           |   |   | -          |   |   | 24,040                          |   |   |
| Wages                  and Salaries                                                                                       |   |   |                                |   |   |                              |   |   | 22,500                           |   |   | -          |   |   | 270,500                         |   |   |
| General                  & Administrative                                                                             |   |   | 239,360                             |   |   | 26,421                            |   |   | 367,497                          |   |   | 71,249     |   |   | 1,048,902                       |   |   |
|                                                                                                                      |   |   |                                |   |   |                              |   |   |                             |   |   |       |   |   |                            |   |   |
|   Total                  Expenses                                                                               |   |   | 380,975                             |   |   | 26,421                            |   |   | 1,156,852                        |   |   | 381,385    |   |   | 4,825,849                       |   |   |
|                                                                                                                      |   |   |                                |   |   |                              |   |   |                             |   |   |       |   |   |                            |   |   |
|   Operating                  Loss                                                                               |   |   | (380,975                            | )      |   | (26,421                           | )      |   | (1,156,852                       | )      |   | (349,178   | )      |   | (2,805,642                      | )      |   |
|                                                                                                                      |   |   |                                |   |   |                              |   |   |                             |   |   |       |   |   |                            |   |   |
| Other                  Income and (expenses)                                                                              |   |   |                                |   |   |                              |   |   |                             |   |   |       |   |   |                            |   |   |
|                                                                                                                      |   |   |                                |   |   |                              |   |   |                             |   |   |       |   |   |                            |   |   |
| Loss                  on abandonment of subsidiary                                                                        |   |   |                                |   |   |                              |   |   |                             |   |   |       |   |   | (50,900                         | )      |   |
| Loss                  from reduction in debt                                                                              |   |   |                                |   |   |                              |   |   |                             |   |   |       |   |   | (48,363                         | )      |   |
| Interest                  Expense                                                                                         |   |   |                                |   |   | (177                              | )      |   |                             |   |   | (625       | )      |   | 0                               |   |   |
| Other                  Income                                                                                             |   |   |                                |   |   |                              |   |   |                             |   |   |       |   |   | 2,096                           |   |   |
|                                                                                                                      |   |   |                                |   |   |                              |   |   |                             |   |   |       |   |   |                            |   |   |
|                                                                                                                      |   |   |                                |   |   |                              |   |   |                             |   |   |       |   |   |                            |   |   |
| Total                  Other Income and (expenses)                                                                        |   |   | 0                                   |   |   | (177                              | )      |   | 0                                |   |   |       |   |   | (97,167                         | )      |   |
|                                                                                                                      |   |   |                                |   |   |                              |   |   |                             |   |   |       |   |   |                            |   |   |
| Net                  Loss                                                                                                 |   | $      | (380,975                            | )      | $      | (26,598                           | )      | $      | (1,156,852                       | )      | $      | (349,803   | )      | $      | (4,902,809                      | )      |   |
|                                                                                                                      |   |   |                                |   |   |                              |   |   |                             |   |   |       |   |   |                            |   |   |
| Basic                  and Dilutive net loss per share                                                                    |   | $      | ($0.006                             | )      | $      | ($0.001                           | )      | $      | ($0.021                          | )      | $      | ($0.016    | )      | $      |                            |   |        |
|                                                                                                                      |   |   |                                |   |   |                              |   |   |                             |   |   |       |   |   |                            |   |   |
| Weighted                  average number                                                                                  |   |   |                                |   |   |                              |   |   |                             |   |   |       |   |   |                            |   |   |
|   of                  shares                  outstanding                                                       |   |   | 63,389,746                          |   |   | 22,100,258                        |   |   | 54,191,382                       |   |   | 22,100,258 |   |   |                            |   |   |
|                                                                                                                      |   |   |                                |   |   |                              |   |   |                             |   |   |       |   |   |                            |   |   |
|                                                                                                                      |   |   |                                |   |   |                              |   |   |                             |   |   |       |   |   |                            |   |   |
|                                                                                                                      |   |   |                                |   |   |                              |   |   |                             |   |   |       |   |   |                            |   |   |
|                                                                                                                      |   |   |                                |   |   |                              |   |   |                             |   |   |       |   |   |                            |   |   |
| The                  accompanying notes are an integral part of these consolidated financial                  statements. |   |   |                                |   |   |                              |   |   |                             |   |   |       |
|                                                                                                                      |   |   |                                |   |   |                              |   |   |                             |   |   |       |   |   |                            |   |   |

----

| Consolidated                  Statement of Stockholders' Equity                  (Deficit)                               |   |   |                                |   |   |    |   |   |        |   |   |
|--------------------------------------------------------------------------------------------------------------------------|--------|--------|-------------------------------------|--------|--------|---------|--------|--------|-------------|--------|--------|
|  (A                  Development Stage Company)                                                                     |   |   |                                |   |   |    |   |   |        |   |   |   |   |   |   |   |
|                                                                                                                     |   |   |                                |   |   |    |   |   |        |   |   | Accumulated |   |   |   |   |
|                                                                                                                     |   |   |                                |   |   |    |   |   |        |   |   | Deficit |   |   |   |   |
|                                                                                                                     |   |   |                                |   |   |    |   |   | Additional  |   |   | During |   |   |   |   |
|                                                                                                                     |   |   | Common                  Stock  |   |   | Paid-in |   |   | Development |   |   |   |   |
|                                                                                                                     |   |   | Shares                              |   |   | Amount  |   |   | Capital     |   |   | Stage |   |   | Total |   |
|                                                                                                                     |   |   |                                |   |   |    |   |   |        |   |   |   |   |   |   |   |
| Balances                  at January 7, 1982                                                                             |   |   | -                                   |   | $      | -       |   | $      | -           |   | $      | - |   | $ | - |   |
| Common                  stock issued for cash at $7.50 per share                                                         |   |   | 6,000                               |   |   | 6       |   |   | 45,000      |   |   | - |   |   | 45,006 |   |
| Common                  stock issued for cash at $0.39 per share                                                         |   |   | 168,503                             |   |   | 169     |   |   | 65,819      |   |   | - |   |   | 65,988 |   |
| Net                  loss from inception Jan 7, 1982 to Dec. 31, 1982                                                    |   |   | -                                   |   |   | -       |   |   | -           |   |   | (39,597 | ) |   | (39,597 | ) |
| Balances                  at Dec. 31, 1982                                                                               |   |   | 174,503                             |   |   | 175     |   |   | 110,819     |   |   | (39,597 | ) |   | 71,397 |   |
|                                                                                                                     |   |   |                                |   |   |    |   |   |        |   |   |   |   |   |   |   |
| Net                  loss for the year ended Dec. 31, 1983                                                               |   |   | -                                   |   |   | -       |   |   | -           |   |   | (71,397 | ) |   | (71,397 | ) |
| Balances                  at Dec. 31, 1983                                                                               |   |   | 174,503                             |   |   | 175     |   |   | 110,819     |   |   | (110,994 | ) |   | (0 | ) |
|                                                                                                                     |   |   |                                |   |   |    |   |   |        |   |   |   |   |   |   |   |
| Common                  stock issued for cash at $25.00 per share                                                        |   |   | 57                                  |   |   | 0       |   |   | 1,425       |   |   | - |   |   | 1,425 |   |
| Common                  stock issued for cash at $25.00 per share                                                        |   |   | 3                                   |   |   | 0       |   |   | 75          |   |   | - |   |   | 75 |   |
| Common                  stock issued for cash at $0.025 per share                                                        |   |   | 1,580,000                           |   |   | 1,580   |   |   | 38,373      |   |   | - |   |   | 39,953 |   |
| Net                  loss - FYE 12/31/84                                                                                 |   |   | -                                   |   |   | -       |   |   | -           |   |   | - |   |   | - |   |
| Balances                  at Dec. 31, 1984                                                                               |   |   | 1,754,563                           |   |   | 1,755   |   |   | 150,692     |   |   | (110,994 | ) |   | 41,453 |   |
|                                                                                                                     |   |   |                                |   |   |    |   |   |        |   |   |   |   |   |   |   |
| Cancellation                  of common stock                                                                            |   |   | (1,296,132                          | )      |   | (1,297  | )      |   |        |   |   |   |   |   | (1,297 | ) |
| Net                  loss - FYE 12/31/85                                                                                 |   |   | -                                   |   |   | -       |   |   | -           |   |   | - |   |   | - |   |
| Balances                  at Dec. 31, 1985                                                                               |   |   | 458,431                             |   |   | 458     |   |   | 150,692     |   |   | (110,994 | ) |   | 40,156 |   |
|                                                                                                                     |   |   |                                |   |   |    |   |   |        |   |   |   |   |   |   |   |
| Net                  loss - FYE 12/31/86                                                                                 |   |   | -                                   |   |   | -       |   |   | -           |   |   | - |   |   | - |   |
| Balances                  at Dec. 31, 1986                                                                               |   |   | 458,431                             |   |   | 458     |   |   | 150,692     |   |   | (110,994 | ) |   | 40,156 |   |
|                                                                                                                     |   |   |                                |   |   |    |   |   |        |   |   |   |   |   |   |   |
| Net                  loss - FYE 12/31/87                                                                                 |   |   | -                                   |   |   | -       |   |   | -           |   |   | - |   |   | - |   |
| Balances                  at Dec. 31, 1987                                                                               |   |   | 458,431                             |   |   | 458     |   |   | 150,692     |   |   | (110,994 | ) |   | 40,156 |   |
|                                                                                                                     |   |   |                                |   |   |    |   |   |        |   |   |   |   |   |   |   |
| Net                  loss - FYE 12/31/88                                                                                 |   |   | -                                   |   |   | -       |   |   | -           |   |   | - |   |   | - |   |
| Balances                  at Dec. 31, 1988                                                                               |   |   | 458,431                             |   |   | 458     |   |   | 150,692     |   |   | (110,994 | ) |   | 40,156 |   |
|                                                                                                                     |   |   |                                |   |   |    |   |   |        |   |   |   |   |   |   |   |
| Net                  loss - FYE 12/31/89                                                                                 |   |   | -                                   |   |   | -       |   |   | -           |   |   | - |   |   | - |   |
| Balances                  at Dec. 31, 1989                                                                               |   |   | 458,431                             |   |   | 458     |   |   | 150,692     |   |   | (110,994 | ) |   | 40,156 |   |
|                                                                                                                     |   |   |                                |   |   |    |   |   |        |   |   |   |   |   |   |   |
| Net                  loss - FYE 12/31/90                                                                                 |   |   | -                                   |   |   | -       |   |   | -           |   |   | - |   |   | - |   |
| Balances                  at Dec. 31, 1990                                                                               |   |   | 458,431                             |   |   | 458     |   |   | 150,692     |   |   | (110,994 | ) |   | 40,156 |   |
|                                                                                                                     |   |   |                                |   |   |    |   |   |        |   |   |   |   |   |   |   |
| Net                  loss - FYE 12/31/91                                                                                 |   |   | -                                   |   |   | -       |   |   | -           |   |   | - |   |   | - |   |
| Balances                  at Dec. 31, 1991                                                                               |   |   | 458,431                             |   |   | 458     |   |   | 150,692     |   |   | (110,994 | ) |   | 40,156 |   |
|                                                                                                                     |   |   |                                |   |   |    |   |   |        |   |   |   |   |   |   |   |
| Net                  loss - FYE 12/31/92                                                                                 |   |   | -                                   |   |   | -       |   |   | -           |   |   | - |   |   | - |   |
| Balances                  at Dec. 31, 1992                                                                               |   |   | 458,431                             |   |   | 458     |   |   | 150,692     |   |   | (110,994 | ) |   | 40,156 |   |
|                                                                                                                     |   |   |                                |   |   |    |   |   |        |   |   |   |   |   |   |   |
| Net                  loss - FYE 12/31/93                                                                                 |   |   | -                                   |   |   | -       |   |   | -           |   |   | - |   |   | - |   |
| Balances                  at Dec. 31, 1993                                                                               |   |   | 458,431                             |   |   | 458     |   |   | 150,692     |   |   | (110,994 | ) |   | 40,156 |   |
|                                                                                                                     |   |   |                                |   |   |    |   |   |        |   |   |   |   |   |   |   |
| Cancellation                  of common stock                                                                            |   |   | (316,000                            | )      |   | (316    | )      |   |        |   |   |   |   |   | (316 | ) |
| Net                  loss - FYE 12/31/94                                                                                 |   |   | -                                   |   |   | -       |   |   | -           |   |   | (6,656 | ) |   | (6,656 | ) |
| Balances                  at Dec. 31, 1994                                                                               |   |   | 142,431                             |   |   | 142     |   |   | 150,692     |   |   | (117,650 | ) |   | 33,184 |   |
|                                                                                                                     |   |   |                                |   |   |    |   |   |        |   |   |   |   |   |   |   |
| Common                  stock issued for cash at $0.001 per share                                                        |   |   | 2,357,895                           |   |   | 2,359   |   |   | -           |   |   | - |   |   | 2,359 |   |
| Net                  loss - FYE 12/31/95                                                                                 |   |   | -                                   |   |   | -       |   |   | -           |   |   | (49,097 | ) |   | (49,097 | ) |
| Balances                  at Dec. 31, 1995                                                                               |   |   | 2,500,326                           |   |   | 2,500   |   |   | 150,692     |   |   | (166,747 | ) |   | (13,555 | ) |
|                                                                                                                     |   |   |                                |   |   |    |   |   |        |   |   |   |   |   |   |   |
| Common                  stock issued for cash at $0.001 per share                                                        |   |   | 120,000                             |   |   | 120     |   |   | -           |   |   | - |   |   | 120 |   |
| Net                  loss - FYE 12/31/96                                                                                 |   |   | -                                   |   |   | -       |   |   | -           |   |   | (1,681 | ) |   | (1,681 | ) |
| Balances                  at Dec. 31, 1996                                                                               |   |   | 2,620,326                           |   |   | 2,620   |   |   | 150,692     |   |   | (168,428 | ) |   | (15,116 | ) |
|                                                                                                                     |   |   |                                |   |   |    |   |   |        |   |   |   |   |   |   |   |
| Net                  loss - FYE 12/31/97                                                                                 |   |   | -                                   |   |   | -       |   |   | -           |   |   | (3,517 | ) |   | (3,517 | ) |
| Balances                  at Dec. 31, 1997                                                                               |   |   | 2,620,326                           |   |   | 2,620   |   |   | 150,692     |   |   | (171,945 | ) |   | (18,633 | ) |
|                                                                                                                     |   |   |                                |   |   |    |   |   |        |   |   |   |   |   |   |   |
| Net                  loss - FYE 12/31/98                                                                                 |   |   | -                                   |   |   | -       |   |   | -           |   |   | (2,479 | ) |   | (2,479 | ) |
| Balances                  at Dec. 31, 1998                                                                               |   |   | 2,620,326                           |   |   | 2,620   |   |   | 150,692     |   |   | (174,424 | ) |   | (21,112 | ) |
|                                                                                                                     |   |   |                                |   |   |    |   |   |        |   |   |   |   |   |   |   |
| Net                  loss - FYE 12/31/99                                                                                 |   |   | -                                   |   |   | -       |   |   | -           |   |   | (6,307 | ) |   | (6,307 | ) |
| Balances                  at Dec. 31, 1999                                                                               |   |   | 2,620,326                           |   |   | 2,620   |   |   | 150,692     |   |   | (180,731 | ) |   | (27,419 | ) |
|                                                                                                                     |   |   |                                |   |   |    |   |   |        |   |   |   |   |   |   |   |
| Net                  loss - FYE 12/31/00                                                                                 |   |   | -                                   |   |   | -       |   |   | -           |   |   | (9,011 | ) |   | (9,011 | ) |
| Balances                  at Dec. 31, 2000                                                                               |   |   | 2,620,326                           |   |   | 2,620   |   |   | 150,692     |   |   | (189,742 | ) |   | (36,430 | ) |
|                                                                                                                     |   |   |                                |   |   |    |   |   |        |   |   |   |   |   |   |   |
| Net                  loss - FYE 12/31/01                                                                                 |   |   | -                                   |   |   | -       |   |   | -           |   |   | (19,461 | ) |   | (19,461 | ) |
| Balances                  at Dec. 31, 2001                                                                               |   |   | 2,620,326                           |   |   | 2,620   |   |   | 150,692     |   |   | (209,203 | ) |   | (55,891 | ) |
|                                                                                                                     |   |   |                                |   |   |    |   |   |        |   |   |   |   |   |   |   |
| Contributed                  capital for rent and other compensation                                                     |   |   | -                                   |   |   | -       |   |   | 1,950       |   |   | - |   |   | 1,950 |   |
| Net                  loss - FYE 12/31/02                                                                                 |   |   | -                                   |   |   | -       |   |   | -           |   |   | (13,960 | ) |   | (13,960 | ) |
| Balances                  at Dec. 31, 2002                                                                               |   |   | 2,620,326                           |   |   | 2,620   |   |   | 152,642     |   |   | (223,163 | ) |   | (67,901 | ) |
|                                                                                                                     |   |   |                                |   |   |    |   |   |        |   |   |   |   |   |   |   |
| Contributed                  capital for rent and officer compensation                                                   |   |   | -                                   |   |   | -       |   |   | 488         |   |   | - |   |   | 488 |   |
| Capital                  contributed by shareholders through forgiveness                                                 |   |   |                                |   |   |    |   |   |        |   |   |   |   |   |   |   |
| of                  accounts payable and interest                                                                        |   |   |                                |   |   | -       |   |   | 77,415      |   |   | - |   |   | 77,415 |   |
|                                                                                                                     |   |   |                                |   |   |    |   |   |        |   |   |   |   |   |   |   |
| Common                  stock issued for services $0.025 per share                                                       |   |   | 13,389,932                          |   |   | 13,390  |   |   | 321,358     |   |   | - |   |   | 334,748 |   |
| Common                  stock issued for legal services at $0.61 per sh.                                                 |   |   | 100,000                             |   |   | 100     |   |   | 60,900      |   |   | - |   |   | 61,000 |   |
| Common                  stock issued for consulting services at $0.47                                                    |   |   | 10,000                              |   |   | 10      |   |   | 4,690       |   |   | - |   |   | 4,700 |   |
| Net                  loss - FYE 12/31/03                                                                                 |   |   | -                                   |   |   | -       |   |   | -           |   |   | (592,962 | ) |   | (592,962 | ) |
| Balances                  at Dec. 31, 2003                                                                               |   |   | 16,120,258                          |   |   | 16,120  |   |   | 617,493     |   |   | (816,125 | ) |   | (182,512 | ) |
|                                                                                                                     |   |   |                                |   |   |    |   |   |        |   |   |   |   |   |   |   |
| Common                  stock issued for services at $0.16 per share                                                     |   |   | 1,000,000                           |   |   | 1,000   |   |   | 159,000     |   |   | - |   |   | 160,000 |   |
| Common                  stock issued for services at $0.17 per share                                                     |   |   | 1,800,000                           |   |   | 1,800   |   |   | 304,200     |   |   | - |   |   | 306,000 |   |
| Common                  stock issued for services at $0.165 per share                                                    |   |   | 800,000                             |   |   | 800     |   |   | 131,200     |   |   | - |   |   | 132,000 |   |
| Common                  stock issued for services at $0.215 per share                                                    |   |   | 30,000                              |   |   | 30      |   |   | 6,420       |   |   | - |   |   | 6,450 |   |
| Common                  stock issued for debt at $0.45 per share                                                         |   |   | 150,000                             |   |   | 150     |   |   | 67,350      |   |   | - |   |   | 67,500 |   |
| Common                  stock issued for services at $0.40 per share                                                     |   |   | 300,000                             |   |   | 300     |   |   | 119,700     |   |   | - |   |   | 120,000 |   |
| Common                  stock issued for services at $0.34 per share                                                     |   |   | 700,000                             |   |   | 700     |   |   | 237,300     |   |   | - |   |   | 238,000 |   |
| Common                  stock issued for services at $0.41 per share                                                     |   |   | 300,000                             |   |   | 300     |   |   | 122,700     |   |   | - |   |   | 123,000 |   |
| Common                  stock issued for services at $0.27 per share                                                     |   |   | 300,000                             |   |   | 300     |   |   | 80,700      |   |   | - |   |   | 81,000 |   |
| Common                  stock issued for services at $0.22 per share                                                     |   |   | 600,000                             |   |   | 600     |   |   | 131,400     |   |   | - |   |   | 132,000 |   |
| Net                  loss - FYE 12/31/04                                                                                 |   |   |                                |   |   |    |   |   |        |   |   | (1,606,057 | ) |   | (1,606,057 | ) |
| Balances                  at Dec. 31, 2004                                                                               |   |   | 22,100,258                          |   |   | 22,100  |   |   | 1,977,463   |   |   | (2,422,182 | ) |   | (422,619 | ) |
|                                                                                                                     |   |   |                                |   |   |    |   |   |        |   |   |   |   |   |   |   |
| Contributed                  capital for general and administrative expenses                                             |   |   |                                |   |   |    |   |   | 138,701     |   |   |   |   |   | 138,701 |   |
| Common                  stock issued for services at $0.03 per share                                                     |   |   | 19,860,000                          |   |   | 19,860  |   |   | 575,940     |   |   |   |   |   | 595,800 |   |
| Net                  loss for the year ended December 31, 2005                                                           |   |   |                                |   |   |    |   |   |        |   |   | (1,323,775 | ) |   | (1,323,775 | ) |
| Balances                  at December 31, 2005                                                                           |   |   | 41,960,258                          |   |   | 41,960  |   |   | 2,692,104   |   |   | (3,745,957 | ) |   | (1,011,893 | ) |
|                                                                                                                     |   |   |                                |   |   |    |   |   |        |   |   |   |   |   |   |   |
| Common                  stock issued for services at $0.09 per share                                                     |   |   | 17,583,334                          |   |   | 17,584  |   |   | 459,916     |   |   |   |   |   | 477,500 |   |
| Common                  stock issued for debt at $0.06 per share                                                         |   |   | 5,000,000                           |   |   | 5,000   |   |   | 295,000     |   |   |   |   |   | 300,000 |   |
| Common                  stock issued for services at $0.03 per share                                                     |   |   | 2,500,000                           |   |   | 2,500   |   |   | 72,500      |   |   |   |   |   | 75,000 |   |
| Common                  stock issued for services at $0.05 per share                                                     |   |   | 500,000                             |   |   | 500     |   |   | 24,500      |   |   |   |   |   | 25,000 |   |
| Net                  loss for the six months ended June 30, 2006                                                         |   |   |                                |   |   |    |   |   |        |   |   | (1,156,852 | ) |   | (1,156,852 | ) |
| Balances                  at June 30, 2006                                                                               |   |   | 67,543,592                          |   | $      | 67,544  |   | $      | 3,544,020   |   |   | ($4,902,809 | ) |   | ($1,291,245 | ) |
|                                                                                                                     |   |   |                                |   |   |    |   |   |        |   |   |   |   |   |   |   |
|                                                                                                                     |   |   |                                |   |   |    |   |   |        |   |   |   |   |   |   |   |
|                                                                                                                     |   |   |                                |   |   |    |   |   |        |   |   |   |   |   |   |   |
|                                                                                                                     |   |   |                                |   |   |    |   |   |        |   |   |   |   |   |   |   |
|                                                                                                                     |   |   |                                |   |   |    |   |   |        |   |   |   |   |   |   |   |
|                                                                                                                     |   |   |                                |   |   |    |   |   |        |   |   |   |   |   |   |   |
| The                  accompanying notes are an integral part of these consolidated financial                  statements |   |   |                                |   |   |    |   |   |        |   |   |   |   |   |   |   |

----

| VICTORY                      ENERGY CORPORATION AND SUBSIDIARIES                                                                                      |   |   |                                    |   |   |                                  |   |   |                              |   |   |     |   |   |                               |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------------------------------------|--------|--------|---------------------------------------|--------|--------|-----------------------------------|--------|--------|----------|--------|--------|------------------------------------|--------|
| (A                      Development Stage Company)                                                                                                    |   |   |                                    |   |   |                                  |   |   |                              |   |   |     |   |   |                               |   |
| Consolidated                      Statements of Cash Flows                                                                                            |   |   |                                    |   |   |                                  |   |   |                              |   |   |     |   |   |                               |   |
|                                                                                                                                                  |   |   |                                    |   |   |                                  |   |   |                              |   |   |     |   |   |                               |   |
|                                                                                                                                                  |   |   |                                    |   |   |                                  |   |   |                              |   |   |     |   |   | From                               |   |
|                                                                                                                                                  |   |   | For                      the       |   |   | For                      the     |   |   | Inception                      on |   |
|                                                                                                                                                  |   |   | Three                      Months Ended |   |   | Six                      Months Ended |   |   | Jan.                      7, 1982 |   |
|                                                                                                                                                  |   |   | June                      30,           |   |   | June                      30,         |   |   | Through                           |   |
|                                                                                                                                                  |   |   | 2006                                    |   |   | 2005                                  |   |   | 2006                              |   |   | 2005     |   |   | Jun.                      30, 2006 |   |
| CASH                      FLOWS FROM OPERATING ACTIVITIES:                                                                                            |   |   |                                    |   |   |                                  |   |   |                              |   |   |     |   |   |                               |   |
| Net                      Loss                                                                                                                         |   | $      | (380,974                                | )      | $      | (349,804                              | )      | $      | (1,156,852                        | )      | $      | (349,804 | )      | $      | (4,827,809                         | )      |
| Adjustments                      to reconcile net loss to net cash                                                                                    |   |   |                                    |   |   |                                  |   |   |                              |   |   |     |   |   |                               |   |
| used                      by operating activities:                                                                                                    |   |   |                                    |   |   |                                  |   |   |                              |   |   |     |   |   |                               |   |
| Depreciation                                                                                                                                          |   |   | 599                                     |   |   | 229                                   |   |   | 599                               |   |   | 229      |   |   | 1,797                              |   |
| Loss                      on extinguishment of debt                                                                                                   |   |   |                                    |   |   |                                  |   |   |                              |   |   |     |   |   | 48,363                             |   |
| Issuance                      of common stock for services                                                                                            |   |   | 400,000                                 |   |   |                                  |   |   | 877,500                           |   |   |     |   |   | 2,976,343                          |   |
| Increase                      in Short Term Receivables                                                                                               |   |   | 88,300                                  |   |   |                                  |   |   | (122,684                          | )      |   |     |   |   |                               |   |
| Decrease                      (Increase) in Prepaid Expenses                                                                                          |   |   |                                    |   |   | 247                                   |   |   |                              |   |   | 247      |   |   |                               |   |
| Increase                      in Deposits                                                                                                             |   |   |                                    |   |   | (2,020                                | )      |   |                              |   |   | (2,020   | )      |   |                               |   |
| Increase                      in Prepaid Subscriptions                                                                                                |   |   | 153,500                                 |   |   |                                  |   |   | 50,000                            |   |   |     |   |   | 203,500                            |   |
| Increase                      (Decrease) in accounts payable                                                                                          |   |   | (330,970                                | )      |   | 312,900                               |   |   | (330,970                          | )      |   | 312,900  |   |   |                               |   |
| Increase                      (Decrease) in accounts payable -related                                                                                 |   |   |                                    |   |   | 24,252                                |   |   |                              |   |   |     |   |   |                               |   |
| Increase                      (Decrease) in accrued liabilities                                                                                       |   |   |                                    |   |   |                                  |   |   | 4,590                             |   |   |     |   |   | 16,006                             |   |
| Increase                      in Accrued Payroll and Payroll Taxes                                                                                    |   |   | (300,000                                | )      |   |                                  |   |   | 450,970                           |   |   | 24,252   |   |   | 690,970                            |   |
| Increase                      in Deposits                                                                                                             |   |   |                                    |   |   |                                  |   |   | 153,500                           |   |   |     |   |   |                               |   |
| Increase                      in Short Term Receivables                                                                                               |   |   | (210,984                                | )      |   |                                  |   |   |                              |   |   |     |   |   | (210,984                           | )      |
| Repayment                      of long term debt                                                                                                      |   |   | (146,431                                | )      |   |                                  |   |   |                              |   |   |     |   |   | (13,569                            | )      |
| Increase                      in Accrued Liabilities - Related                                                                                        |   |   | 690,970                                 |   |   |                                  |   |   | (2,500                            | )      |   | 481      |   |   | 121,000                            |   |
| Non-cash                      contributed capital                                                                                                     |   |   |                                    |   |   |                                  |   |   |                              |   |   |     |   |   | (524                               | )      |
|  Net                      Cash provided by (used by)                                                                                             |   |   |                                    |   |   |                                  |   |   |                              |   |   |     |   |   |                               |   |
|  Operating                      Activities                                                                                                       |   | $      | (35,990                                 | )      | $      | (14,196                               | )      | $      | (75,847                           | )      | $      | (13,715  | )      | $      | (994,907                           | )      |
| CASH                      FLOWS FROM INVESTING ACTIVITIES                                                                                             |   |   |                                    |   |   |                                  |   |   |                              |   |   |     |   |   |                               |   |
| Purchase                      of Fixed Assets                                                                                                         |   |   |                                    |   |   | (14,941                               | )      |   |                              |   |   | (14,941  | )      |   | (2,294                             | )      |
| Purchase                      of Marketable Securities                                                                                                |   |   |                                    |   |   | (88,300                               | )      |   |                              |   |   | (88,300  | )      |   |                               |   |
| Investment                      in Joint Venture                                                                                                      |   |   | (50,000                                 | )      |   |                                  |   |   | (50,000                           | )      |   |     |   |   | (50,000                            | )      |
|  Net                      Cash (used by) Investing Activities                                                                                    |   | $      | (50,000                                 | )      | $      | (103,241                              | )      | $      | (50,000                           | )      | $      | (103,241 | )      | $      | (52,294                            | )      |
|                                                                                                                                                  |   |   |                                    |   |   |                                  |   |   |                              |   |   |     |   |   |                               |   |
| CASH                      FLOWS FROM FINANCING ACTIVITIES                                                                                             |   |   |                                    |   |   |                                  |   |   |                              |   |   |     |   |   |                               |   |
| Proceeds                      of Note Payable                                                                                                         |   |   |                                    |   |   |                                  |   |   | 3,027                             |   |   |     |   |   | 114,664                            |   |
| Proceeds                      from Loans                                                                                                              |   |   |                                    |   |   | 160,000                               |   |   |                              |   |   | 160,000  |   |   |                               |   |
| Proceeds                      of Loan from Officer                                                                                                    |   |   | 58,310                                  |   |   |                                  |   |   | 116,664                           |   |   |     |   |   | 200,031                            |   |
| Proceeds                      (Repayment) of Note Payable-Related Party                                                                               |   |   | (2,500                                  | )      |   | 481                                   |   |   |                              |   |   |     |   |   | 169,679                            |   |
| Contributed                      capital for rent and officers' compensation                                                                          |   |   |                                    |   |   |                                  |   |   |                              |   |   |     |   |   | 2,438                              |   |
| Issuance                      of Common Stock for Cash                                                                                                |   |   |                                    |   |   |                                  |   |   |                              |   |   |     |   |   | 41,960                             |   |
| Proceeds                      from the sale of Common Stock                                                                                           |   |   |                                    |   |   |                                  |   |   |                              |   |   |     |   |   | 300,231                            |   |
| Contributed                      Capital by shareholders                                                                                              |   |   |                                    |   |   |                                  |   |   |                              |   |   | -        |   |   | 216,116                            |   |
|  Net                      Cash provided by Financing Activities                                                                                  |   | $      | 55,810                                  |   | $      | 160,481                               |   | $      | 119,691                           |   | $      | 160,000  |   | $      | 1,045,119                          |   |
|                                                                                                                                                  |   |   |                                    |   |   |                                  |   |   |                              |   |   |     |   |   |                               |   |
| NET                      INCREASE IN CASH                                                                                                             |   |   | (30,180                                 | )      |   | 43,044                                |   |   | (6,156                            | )      |   | 43,044   |   |   | (2,082                             | )      |
| CASH                      AT BEGINNING OF PERIOD                                                                                                      |   |   | 28,098                                  |   |   | -                                     |   |   | 4,074                             |   |   | -        |   |   | -                                  |   |
| CASH                      AT END OF PERIOD                                                                                                            |   | $      | (2,082                                  | )      | $      | 43,044                                |   | $      | (2,082                            | )      | $      | 43,044   |   | $      | (2,082                             | )      |
|                                                                                                                                                  |   |   |                                    |   |   |                                  |   |   |                              |   |   |     |   |   |                               |   |
| CASH                      PAID FOR:                                                                                                                   |   |   |                                    |   |   |                                  |   |   |                              |   |   |     |   |   |                               |   |
|  Interest                                                                                                                                        |   | $      | -                                       |   | $      | -                                     |   | $      | -                                 |   | $      | -        |   | $      | -                                  |   |
|  Income                      Taxes                                                                                                               |   | $      | -                                       |   | $      | -                                     |   | $      | -                                 |   | $      | -        |   | $      | -                                  |   |
|                                                                                                                                                  |   |   |                                    |   |   |                                  |   |   |                              |   |   |     |   |   |                               |   |
| SUPPLEMENTAL                      DISCLOSURE OF CASH FLOW INFORMATION                                                                                 |   |   |                                    |   |   |                                  |   |   |                              |   |   |     |   |   |                               |   |
| Proceeds                      from the sale of Common Stock                                                                                           |   | $      | -                                       |   | $      | -                                     |   | $      | -                                 |   | $      | -        |   | $      | 342,191                            |   |
| Contributed                      Capital by shareholders                                                                                              |   |   |                                    |   | $      | -                                     |   | $      | -                                 |   | $      | 138,701  |   | $      | 216,116                            |   |
| Stock                      issued for services                                                                                                        |   | $      | 400,000                                 |   | $      | -                                     |   | $      | 877,500                           |   | $      | -        |   | $      | 2,930,418                          |   |
| Contributed                      capital for rent, officer compensation                                                                               |   | $      | -                                       |   | $      | -                                     |   | $      | -                                 |   | $      | -        |   | $      | 2,438                              |   |
| Other                      contributed capital                                                                                                        |   | $      | -                                       |   | $      | -                                     |   | $      | -                                 |   | $      | -        |   | $      | 45,401                             |   |
|                                                                                                                                                  |   |   |                                    |   |   |                                  |   |   |                              |   |   |     |   |   |                               |   |
| The                      accompanying notes are an integral part of these consolidated                      financial                      statements |   |   |                                    |   |   |                                  |   |   |                              |   |   |     |   |   |                               |   |

----

**NOTES            TO CONSO****LIDATED****FINANCIAL STATEMENTS**

** **

----

|                                                            |   |   | **2006**   |   |   | **2005**                       |   |
|-----------------------------------------------------------------|--------|--------|------------|--------|--------|--------------------------------|--------|
| Numerator:                                                      |   |   |       |   |   |                           |   |
|                                                            |   |   |       |   |   |                           |   |
| Basic                      and diluted net loss per share:      |   |   |       |   |   |                           |   |
| Net                      Loss               |   | $      | (1,156,852 | )      | $      | (                      349,803 | )      |
|                                                            |   |   |       |   |   |                           |   |
| Denominator                                                     |   |   |       |   |   |                           |   |
|                                                            |   |   |       |   |   |                           |   |
| Basic                      and diluted weighted average         |   |   |       |   |   |                           |   |
| number                      of shares outstanding     |   |   | 54,191,382 |   |   | 22,100,258                     |   |
|                                                            |   |   |       |   |   |                           |   |
|                                                            |   |   |       |   |   |                           |   |
| Basic                      and Diluted Net Loss Per Share  |   | $      | (0.021     | )      | $      | (0.016                         | )      |

| **Description**                                     | **Years** |
|-----------------------------------------------------|-----------|
|                                                |      |
| Furniture                      and fixtures         | 7         |
| Computer                      hardware and software | 3-5       |

----

----

| (1)   | The                      error affected only the reporting of the three month period                      ended June 30,                      2005. An adjustment of the cumulative effect on prior periods                      was not                      necessary. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2)   | The                      error does no affect net income. An offsetting adjustment to                      components of                      equity and net assets is not                      required. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (3)   | Adjustment                      of financial statements of prior periods was not required. |
|-----------------|--------------------------------------------------------------------------------------------|

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**Item      2.** **Management's Discussion and Analysis or Plan of      Operation**

**Our      Business**

**Current      Business of the Company**

|   | 1. | A                percentage of the Company’s ownership interest may be sold off until we                own a percentage of the prospect with no out-of-pocket expenses required                from us; or |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | We                may seek to raise between $1 million and $4 million to finance each                respected prospect in its entirety. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------|

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**Plan      of Operation**

**Results      of Operations for Period Ended June 30, 2006**

**Liquidity      and Capital Resources**

**Item      3. Controls and Procedures**

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**PART      II - OTHER INFORMATION**

**Item      1. Legal Proceedings**

**Item      2. Unregistered Sales of Equity Securities and Use of      Proceeds **

**Item      3. Defaults Upon Senior Securities**

**Item      4. Submission of Matters to a Vote of Security      Holders**

**Item      5. Other Information.**

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**Item      6. Exhibits and Reports on Form 8-K**

**Exhibit      No.**
**Description      of Exhibit**

|   | 31 |   | Certification                of Chief Executive/Financial Officer                pursuant to Section 302 of the Sarbanes-Oxley Act of                2002 |
|--------|----|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

32
Certification      of Chief Executive/Financial Officer pursuant to      Section 906

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**SIGNATURE**

|                                     |                                                   |                                 |
|------------------------------------------|--------------------------------------------------------|--------------------------------------|
|                                     | **Victory              Energy Corporation**            |
|                                |                                              |                            |
| Date: November              6, 2006 | By:                                          | /s/ Jon              Fullenkamp |
|                                     |                                                        |
|                                     | Principal              Executive Officer               |
|                                     | Principal Financial Officer                            |
|                                     | Principal Accounting Officer and              Director |

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