HOUSTON, May 3, 2011 (GLOBE NEWSWIRE) -- Liberty Energy Corp. (OTCBB:LBYE) ("Liberty" or "the Company") considers the effects of recent political events on oil prices and provides an operational update.
Industry experts believe that oil prices may surge to $220 a barrel if political unrest in North Africa halts exports from Libya and Algeria.
Crude futures have risen to their highest in more than two years in New York over the past weeks as Libya's violent uprising threatened to disrupt shipments from Africa's third-largest supplier. The commodity surged to $112.86 a barrel in New York. With the Libyan leader Muammar Qaddafi vowing to fight a growing rebellion until his "last drop of blood," it is expected that continued uncertainty may force the price even higher. One Tokyo-based bank has predicted that if Libya and Algeria were to halt oil production together, prices could peak above $220 a barrel and OPEC spare capacity will be reduced to 2.1 million barrels a day, similar to levels seen during the Gulf War and when prices hit $147 in 2008.
The Organization of Petroleum Exporting Countries has a spare production capacity of about 5 million barrels a day, according to the International Energy Agency. Saudi Arabian Oil Minister Ali al-Naimi said that the organization will boost output if there is a shortage.
Other experts say that the $220 prediction may be an underestimate, as speculative investors trading oil who were not active in the early 1990s may amplify the price gain in the event of an export halt.
"We are pleased to confirm that production on our Lockhart lease continues and initial results from the final work program performed on the Dahlstrom gas well are very encouraging. We have also been working hard to finalize plans to drill a new well that will specifically target the Edwards and test the potential for production from this zone. We have also been on the ground talking to landowners and operators, attempting to identify and analyze potential new projects. Our geological reports, offset and historical data suggest that each vertical well drilled could produce 40,000 to 50,000 bbls using vertical technology. We have sufficient space on our lease to fully exploit the play. We are still working diligently with consultants and our legal team to finalize what we consider the best approach for our Company and aim to provide further details shortly. Furthermore, current global political unrest has led to rising oil prices resulting in increased revenues," commented Ian Spowart, 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, specifically statements relating to plans for drilling new wells on the Company's Lockhart leases and the potential production of such wells, 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 Email: firstname.lastname@example.org INVESTOR RELATIONS: Toll Free: 1-877-890-1650 Email: email@example.com