HOUSTON, Oct. 11, 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 a Corporate Update for the quarter to September 31, 2010, detailing positive progress to date.
Equity Financing Agreement
The Company entered into a non-toxic equity financing agreement with Asia-Pacific Capital Ltd (APC) for up to $8,000,000 in August 2010. The executed agreement is a $4,000,000 financing agreement, which includes the option to secure a further $4,000,000, bringing the total value of the deal to $8,000,000 in equity investment over a maximum term of four years. The Company has secured equity financing, and as such is debt free. APC agreed to the funding in an effort to further the Company's expansion and growth plan. The Company has made several draw-downs from the agreement totaling $300,000 to date which have been used to fund drilling, development and other operating expenses.
Depository Trust Company (DTC)
The Company announced it had been granted eligibility status by the Depository Trust Company (DTC) in early August 2010. Eligibility has simplified the process by which Company shares are traded or exchanged through brokers of investors' choice, thereby offering investors easy access to trades and therefore improved liquidity.
Appointment of Resultz Media
The Company announced the appointment of Resultz Media Group (RMG) as its Investment Relations Partner to provide investor relations services to the Company's valued shareholders, and other interested parties in August 2010.
The investor relations' activities include handling queries from shareholders, developing public relations and marketing programs, preparing and disseminating corporate data packages and assisting the Company with broker presentations and broker communications. The agreement between the Company and RMG provides for one-year terms, which renews automatically, unless otherwise terminated in accordance with the terms of the agreement.
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. The Company has been monitoring the well continuously, and has noticed water in the well which has been slightly affecting production. In response, soap sticks have been deposited in the well, these reduce the hydrostatic weight of the water in the well, allowing the gas to rise to the surface, and production remains constant.
The Company is now evaluating a number of different options to further increase production in the short term, while considering opportunities to further develop the acreage by drilling new wells.
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 the 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 & #3 and the Anton, housing 1 shut in well called the Anton #1.
The work program commenced in early September 2010 and initial results have been very positive. The work on the #1 & #3 is nearly complete and the #1 is now producing with the completion of the work to the #3 expected imminently. 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.
Bulgaria - A-Lovech
The Deventci-R1 discovery well is situated on the A-Lovech exploration block and covers 1,830 square miles (or 1,171,200 acres) in Bulgaria. The total depth of the Deventci-R1 discovery well is 5,888 meters (19,313 ft.) in the Lower Triassic Alexandrovo formation. The well is on a geological feature known as the West Koynare structure, which covers around 15-20 sq km.
The project is operated by Direct Petroleum Exploration Inc. (DPE) meaning the Company is currently not involved in any ongoing development operations or exploration of the block. That being said, the ORRI does entitle the Company to royalty interest on all future revenues and reserves located on the block, at no further cost to the Company.
The initial results of the testing by DPE show that gas and natural gas condensate are of a very high quality with low sulphur content. The Company can confirm that there has been continuous testing on the Deventci R1 discovery well, and it is believed that DPE are planning to file for a production license by the end of 2010.
As a result of this update, the Company plans to continue searching for potential assets in Bulgaria and the surrounding European countries, with a view to engaging in similar low risk opportunities.
Ian Spowart, Liberty's Chief Executive Officer, said: "We are extremely pleased with the progress made over the past quarter, both commercially and operationally. To have 2 wells producing and generating positive revenues is great; we expect to have another 3 online and producing shortly. We intend to pursue an aggressive growth program, with the help of our financial backing and are currently investigating further opportunities in the U.S., Europe and Africa."
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 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 firstname.lastname@example.org INVESTOR RELATIONS: 1-877-890-1650 email@example.com Two Allen Center Suite 1600 1200 Smith Street Houston TX 77002