HOUSTON, March 24, 2011 (GLOBE NEWSWIRE) -- Liberty Energy Corp. (OTCBB:LBYE) ("Liberty" or "the Company") is pleased to provide a quarterly update, which highlights some of the major advances the Company has made in the past three months.
In addition to further development and continued production from our Lockhart asset, the past quarter has had some significant milestones.
Liberty Energy Extends Equity Financing Agreement to $8,000,000
March 16, 2011 the Company announced an extension to its equity financing agreement with Asia-Pacific Capital Ltd (APC) to $8,000,000.
The Company signed a $4,000,000 financing agreement with APC in July 2010. The agreement included 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 announced agreeing to exercise the option to extend the debt-free, secured equity financing to the full $8,000,000.
APC has agreed to the additional funding in an effort to further the Company's ever increasing expansion and aggressive growth plan. The funds will be used primarily for drilling, development and other operating expenses.
Liberty Energy Announces Plans to Drill a New Well on Alexander A Lease, Lockhart, Texas
March 14, 2011 the Company announced plans to drill a new well on the Alexander A Lease, Lockhart, Texas.
The Company is delighted with the progress made on the Lockhart lease, and after considering multiple options, has announced plans to further develop the asset by drilling a new test well that will specifically target the Edwards shale play.
Works carried out on the primary 3 wells in addition to further testing and discussions with various consultants has improved the Company's understanding of the lease and its potential.
The Edwards limestone formation underlies the Eagle Ford Shale and Austin Chalk formations, which the Company is currently producing from. The Edwards is considered by geologists to be the original source of hydrocarbons that are now found in the Eagle Ford Shale and Austin Chalk above it.
"We are excited by our plans to drill a new well that will specifically target the Edwards to test the potential for production from this zone. Geological reports based on geological, offset and historical data suggest that each vertical well drilled could produce 40,000 to 50,000 bbls, and each horizontal well 250,000 to 300,000 bbls. We are still working with consultants to determine the best approach for our Company. We believe a maximum of 60 wells should be sufficient to fully exploit the play. We expect to be able to provide further details shortly."
Liberty Energy Provides Interim Update on Final Phase of Work on Dahlstrom Project, Texas
March 9, 2011 the Company announced the final phase of work to Dahlstrom #1 well, Texas, is progressing on schedule.
After evaluating a number of different options with various consultants, the Company scheduled a cement squeeze to be performed on the well. This procedure is designed to plug the lower zones of the well with cement. The well is then re-perforated at a higher interval, isolating the higher productive perforation, and impedes any water from encroaching into the productive zone, expecting to re-commence production at sustained higher levels.
Liberty Energy Announces Execution of Memorandum of Understanding for New Texas Reef Prospect
March 2, 2011 the Company announced executing a memorandum of understanding to acquire new acreage in both Caldwell and Travis Counties, Texas.
The Company is pleased to announce that it has signed a memorandum of understanding to acquire an estimated 400 acres in Caldwell and Travis Counties. The Company intends to conduct further geological and geophysical surveys to complete the plan of development for this project.
The Lower Cretaceous Reef Prospect that the Company proposes to acquire had one well, which is currently plugged, drilled into the reef complex in the 1950's. At that time it showed excellent thickness, porosity and permeability. Hydrocarbon indications in the upper portion of the reef demonstrate that oil stains are contained within sidewall core. Geophysical surveys further indicate an early Cretaceous shelf edge on which the reef was originally formed. The Company intends to drill on the shelf edge in the optimum 'reef forming' environment to maximize the potential of this prospect.
Liberty Energy Joins Texas Oil and Gas Association
Feb. 15, 2011 the Company announced it is a proud member of the Texas Oil and Gas Association (TxOGA).
The Texas Oil and Gas Association is the largest and oldest petroleum organization in Texas, representing over 4,000 members. The membership of TxOGA produces approximately 92 percent of Texas' crude oil and natural gas, operates 100 percent of the state's refining capacity, and is responsible for the vast majority of the state's pipelines.
Liberty Energy Provides an Update on the Deventci-R1 Discovery Well, Bulgaria
Feb. 7, 2011 the Company provided an update on its interest in the Deventci-R1 discovery well situated on the A-Lovech exploration block in Bulgaria.
On 14 April 2010 the Company announced they had concluded the assignment of overriding royalty rights (ORRI) to a proven multi billion cubic feet of natural gas property in North-West Bulgaria, 130km from the capital city Sofia.
The Company can confirm the New York Stock Exchange-listed TransAtlantic Worldwide Ltd., with a market capitalization of circa $1billion, recently acquired Direct Petroleum Bulgaria EEOD (the current operators), Direct Petroleum Morocco, Inc. and Anschutz Morocco Corporation – which owned the project.
"We are extremely proud with the progress we have made over the last three months. Exploration and development of our present assets are moving in the right direction and should put us in a very strong position to increase our production within the near future. We will be providing further details and results shortly," said Ian Spowart President and CEO 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 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. Two Allen Center Suite 1600 1200 Smith Street Houston TX 77002 Tel: 713-353-4700 Fax: 713-353-4701