HOUSTON, Oct. 19, 2010 (GLOBE NEWSWIRE) -- Liberty Energy Corp. (OTCBB:LBYE) ("Liberty" or "the Company") is pleased to announce a further draw-down from its equity financing agreement.
The Company has received the draw-down 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 support the implementation of the first stage of a multi-phase work program on the Lockhart Lease and ongoing operational activities.
The Lockhart Northeast Project in Caldwell County houses two leases which consist of four land tracts containing eight wells (five re-entry wells and three shut-in wells).
The Company announced it had entered into a multi-phased well re-entry program on the lease in September 2010. 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 known 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.
Phase one of 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 company has confirmed the #1 is now producing. Production on the lease is expected to double when the work to the #3 is completed, which the Company anticipates to be imminently.
Upon completion of the first phase of work program the Company will have 4 further producing wells.
The Company has further confirmed its management team is in the process of planning a site visit with the operators and other contractors. The purpose of the visit will be to assess the work performed and conduct a detailed evaluation of the lease's potential with a view to drilling new wells. The Lockhart Lease is spread over roughly 848 acres and holds enough space to house a potential further 282 new wells.
"We are delighted to have the continued support and financial backing of our investors. These additional funds will allow us to continue implementing stage one of our aggressive multi-phase work program on our Lockhart Lease. We are pleased with the ongoing progress on our work program and to have one of the wells producing and contributing towards overheads and operating expenditures is great. With the continued support of the financing agreement we hope to proceed with developing the rest of field whilst maintaining zero debt on our balance sheet," 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