Velocity Energy Inc., formerly Sonterra Resources, Inc., is an oil and gas exploration and production company. The Company’s oil and gas assets consist of certain oil and gas properties and related assets that the Company acquired from Cinco Natural Resources Corporation (Cinco) and Flash Gas & Oil Southwest, Inc. (Flash). The Company’s wholly owned subsidiary, Sonterra Operating, Inc., is an operator of its oil and gas properties, which are located in Matagorda Bay in Texas State Waters lying offshore the Texas coastal counties of Calhoun and Matagorda. The Company purchased 60% of the interests held by Cinco in the Texas State Tract 150 Wells No. 1 and No. 2 located in Matagorda Bay, Texas, as well as 320 acre oil and gas lease related to those wells and certain other leases covering approximately 3,200 additional acres located in Matagorda Bay. On July 8, 2008, the Company acquired Velocity Energy Offshore LP and Velocity Energy Partners LP.