HOUSTON, Dec. 2, 2010 (GLOBE NEWSWIRE) -- Liberty Energy Corp. (OTCBB:LBYE) ("Liberty" or "the Company"), an Independent Oil and Gas Exploration and Production Company dedicated to the sourcing and production of fuel supplies in the United States and Europe, is pleased to provide an operational update, detailing positive progress to date.
Texas - Dahlstrom Lease
The Dahlstrom #1 re-entry well is located on approximately 58 acres of productive sands located above the currently completed interval in the Dahlstrom # 1 well. The Company announced it intended to re-enter the well, perforate the intervals with potentially productive sands, and increase the level of production of natural gas. Work on the site commenced at the end of August 2010.
The Company confirmed in September 2010 that initial production following the re-entry of the well was three times higher than the level of production achieved prior to the work. During the post work-over production period the Company noticed there was water in the well which slightly affected production. In response a generator has been installed on the well to ease well pressure and improve production levels. The generator is currently undergoing a continuous three-day dialing test to determine the optimum level of production for the well. Initial results have been promising and consistent optimum production is expected shortly.
Texas - Lockhart Lease
The Lockhart Northeast Project in Caldwell County consists of four land tracts containing eight wells (five re-entry wells and three shut-in wells) over two leases. The lease is located over roughly 848 acres and, if proven viable, holds enough space to house a potential further 282 new wells.
In September 2010, the Company announced it had entered into a multi phased well re-entry program on the lease. During phase one of the five-stage work-over, the Company intended to re-enter 3 wells and then drill out 1 well on the lease. The four wells in question are located on 3 tracts of land know as the Alexander A, housing 1 re-entry well called the #2, the Alexander B, housing 2 shut-in wells called the #1 and #3 and the Anton, housing 1 shut in well called the Anton #1. The work will enable the Company to have 4 further wells in production as well as hold the leases by production. Initial work will be followed by a detailed evaluation of the possibility of developing the lease to its full potential, including drilling of new wells.
Alexander A
The Company confirmed on October 29 they had drilled through the 2nd plug from the surface down to about 300' and the 1st plug at around 1481'. Drilling continued the following day and the crew successfully drilled through to the cast iron bridge plug. The crew confirmed they had positive oil and gas shows throughout the drilling.
The cast iron bridge claimed several drill bits while drilling and put the team behind schedule. The Company confirmed having cut the tubing around 1700' and equipping the well with tubing, rods, downhole pump, pumping unit, etc. in preparation to produce from the original zone known as the Austin Chalk. The Company now expects to begin production within the next week as soon as the electrical company installs the power supply to the lease.
Alexander B
The work program commenced in early September 2010 and initial results have been very positive. The well work on the #1 and #3 is complete and both wells are online. Commercial Electric was on location last week to replace two electricity poles and run an overhead power line in preparation for production. The company has been finalizing work to the general site over the last week in anticipation of the commencement of production.
"We are extremely pleased with the progress on the leases. We are expecting to receive positive news regarding the Dahlstrom by the weekend once the dialing test has been completed. Work has been a little slower than expected on the Alexander A #2 this week due to the cast iron bridge but we expect to have all three wells on the Alexander A and B producing by early next week. We are expecting to complete Phase 1 of the Lockhart project imminently and are currently considering various options to further improve the asset – and plan to move ahead with further drilling and development imminently. We are also looking at potential new projects, and are still intending to pursue an aggressive growth program by investigating further opportunities in the U.S., Europe and Africa," commented Ian Spowart, CEO of Liberty Energy Corp. For more information and pictures of the team at work on the Lockhart project see the Liberty Energy website at www.energy-liberty.com/projects/texas/.
ABOUT LIBERTY: Liberty Energy Corp. (OTCBB:LBYE) is an Independent Oil and Gas Exploration and Production Company dedicated to the sourcing and production of fuel supplies in the United States and Europe. Headquartered in Houston, Texas, the company has leases and royalties in both Texas and Bulgaria, covering several wells with extensive potential for future development. In Texas, four leases – Dahlstrom, Ratliff, and two at Lockhart Northeast – are identified as rich oil and gas sites based around numerous geological pay zones. In North-West Bulgaria, Liberty has royalty rights to a 1,000,000+ acre natural gas property (the A-Lovech exploration block), an area of high quality, low- sulphur natural gas condensate. Through this combined international reach and domestic focus, Liberty Energy is committed to the development of U.S. fuel reserves while seeking out further opportunities for the global energy markets.
Certain statements in this press release are forward-looking and involve a number of risks and uncertainties. Such forward-looking statements are within the meaning of that term in Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Liberty Energy Corp. bases these forward-looking statements on current expectations and projections about future events, based on information currently available. The forward-looking statements contained in this press release may also include statements relating to Liberty Energy Corp.'s anticipated financial performance, business prospects, new developments, strategies and similar matters. Liberty Energy Corp. disclaims any obligation to update any of its forward-looking statements, except as may be required by law.
ON BEHALF OF THE BOARD OF DIRECTORS,
Liberty Energy Corp
Ian Spowart Chief Executive Officer
CONTACT: Liberty Energy Corp. 713-353-4700 Fax: 713-353-4701 info@energy-liberty.com INVESTOR RELATIONS: 1-877-890-1650 ir@energy-liberty.com Two Allen Center, Suite 1600 1200 Smith Street Houston, TX 77002