HOUSTON, Nov. 15, 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 six weeks to November 12, 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 Company has made several draw-downs from the agreement which have been used to fund drilling, development and other operating expenses over the past six weeks to November 12, 2010.
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. During the post work-over production period the Company noticed there was water in the well which slightly affected production. In response, soap sticks were deposited in the well, which reduced the hydrostatic weight of the water in the well, allowing the gas to rise to the surface and production to remain constant. The Company has now installed a generator on the well to ease well pressure and improve production levels. The generator has only recently been installed and the Company is in the process of dialing the generator to reach an optimum level of production for the well. Initial results have been promising and consistent optimum production is expected to be achieved within two weeks.
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 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.
Alexander A
The Company confirmed on October 25 they had drilled through the 2nd plug from the surface down to about 300'. The Company then confirmed on October 28 the 2nd plug had been reached at around 1481', the well then had to be shut in overnight due to adverse weather conditions. Drilling continued the following day and the crew successfully drilled through the 1st plug and proceeded to drill through the cast iron bridge plug. The crew confirmed they received oil and gas shows throughout the day.
The cast iron bridge has claimed several drill bits while drilling and has put the team behind schedule. The Company confirmed November 5, 2010 that progress had been made by adding more weight with additional drill collars. Progress over the past week has again been slow due to further challenges drilling through the cast iron bridge. Drill bits and cones have been lost down the well resulting in several fishing tools with magnets being run down the well.
The Company has just finished cutting the tubing around 1700' and have been equipping the well with tubing, rods, downhole pump, pumping unit, etc. in preparation to produce from the original zone known as the Austin Chalk over the past week.
Alexander B
The work program commenced in early September 2010 and initial results have been very positive. The well work on the #1 & #3 is complete and both wells are online. Commercial Electric were on location last week to replace two electricity poles and run an overhead power line in preparation for production. The company has been finalizing work to the general site over the last week in anticipation of the commencement of production.
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 six weeks. To have 3 wells producing and generating positive revenues is great; we expect to have another 2 online and producing shortly. Despite being slowed down by the cast iron bridge we are pleased with the progress made and are we will be working hard to get back on schedule. We are expecting to complete Phase 1 of the project in the coming weeks and have been revisiting the original work-over plans with our partners. We have now updated our scheduling charts in anticipation of the commencement of Phase 2 of the work-over. We are also looking at potential new projects and are still looking to pursue an aggressive growth program by investigating further opportunities in the US, 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 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