HOUSTON, Sept. 2, 2010 (GLOBE NEWSWIRE) -- Liberty Energy Corp. (OTCBB:LBYE) ("Liberty" or "the Company") is pleased to announce the draw-down of $125,000 from the recently executed equity financing agreement.
The Company has received the drawdown under the terms of the equity investment agreement that does not include any debt financing and facilitates funding of up to $8,000,000.
The funds have been drawn to implement the first stage of a multi-phase work program on the Lockhart Lease and will bring the total of external investment this year to $500,000.
The Lockhart Northeast Project in Caldwell County houses two leases. These leases consist of four land tracts containing eight wells (five re-entry wells and three shut-in wells); the site is spread over roughly 848 acres and hold enough space to house a potential further 282 new wells.
This drawdown will go towards funding the work-overs of the existing wells with a view to analyzing the well logs to further develop the lease through the potential drilling of a further 282 wells if proved to be viable.
There are four main pay zones in this area that the wells could produce from. These are the Serpentine, Dale Lime, Austin Chalk & Buda. That being said, it is believed that new field discoveries are possible in the Buda, Serpentine and Dale Lime on these leases based on logged but undeveloped shows.
"We are delighted to have the continued support and financial backing of our investors. These funds will allow us to begin stage one of our efficient multi-phase work program on our Lockhart Lease. We are excited at the prospect of getting back into the field and beginning the work-over on what we think is going to be a great revenue generating asset for the company," commented Daniel Martinez-Atkinson, CFO of Liberty Energy Corp.
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 signed agreements to acquire 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 acquired 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 US 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 firstname.lastname@example.org Investor Relations: 1-877-890-1650 email@example.com Two Allen Center Suite 1600 1200 Smith Street Houston, TX 77002