HOUSTON, Aug. 9, 2011 (GLOBE NEWSWIRE) -- Liberty Energy Corp. (OTCBB:LBYE) ("Liberty" or "the Company") is pleased to announce a draw-down from its equity financing agreement.
The funds have been drawn to support ongoing operational activities on its oil and gas leases in Texas.
The Company has received the draw-down under the terms of its equity investment agreement that does not include any debt financing and facilitates funding of up to $8,000,000.
The Company is currently working with various geologists and consultants with a view to drilling a new well that will specifically target the Edwards (on the Lockhart Lease) to test the potential for production from this zone. Existing 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. Experts have suggested that a maximum of 60 wells should be sufficient to fully exploit the play.
"We are delighted to have the continued support and financial backing of our investors.
"We are currently working hard to finalize plans to drill a new well that will specifically target the Edwards to test the potential for production from this zone. We are also working with other interested parties on a potential joint venture deal that will benefit all parties involved. We are working with consultants to determine the best approach for our Company and its stakeholders. With the continued support of the financing agreement we hope to proceed with developing new and existing assets whilst maintaining zero debt on our balance sheet," 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 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