HOUSTON, Jan. 12, 2012 (GLOBE NEWSWIRE) -- Liberty Energy Corp. (OTCBB:LBYE.OB) ("Liberty" or "the Company") anticipates a prosperous year ahead in 2012 with global oil prices on the rise.
Oil prices climbed around 4% as soon as exchanges opened for the first day of 2012 trading. Prices were driven up by heightened concerns that Iran might try to close the Strait of Hormuz, where one-sixth of the world's oil shipments pass every day, in the Persian Gulf, if Western nations impose new sanctions.
Many analysts say that crude oil will rise for the fourth year in a row to a new record average price in 2012. Global oil demand is expected to rise to a record 89.5 million barrels per day in 20121. Furthermore, based on analyst estimates compiled by Bloomberg, West Texas Intermediate oil on the New York Mercantile Exchange will reach an average of $100 a barrel in 2012, topping the all-time high of $99.75 set in 2008. Oil producers are expected to meet that demand, but a prolonged conflict could lead to shortages and fuel price spikes that stifle economic growth2.
Goldman Sachs senior commodities analyst Allison Nathan said the bank expects Brent Crude to reach $130 within the next year. She suggested the growth in the developed economies will be weak during the next 12 months but the emerging economies such as China and the BRICS (Brazil, Russia, India, China and South Africa) are expected to make up for the weakness in demand for commodities.
"Global energy demands are still growing despite the global economic slowdown, and oil prices are on track to average over $100 a barrel in 2012. These are ideal conditions for us to expand our existing operations. We are currently in the process of identifying, with a view to acquiring, oil and gas leases in Texas, Louisiana and Oklahoma. We are fortunate to have a good line of financing available to us and we intend on taking advantage of this by acquiring, with a view to developing, quality assets to increase shareholder value through increased production," Commented Ian Spowart, CEO of Liberty Energy Corp.
ABOUT LIBERTY: Liberty Energy Corp (OTCBB:LBYE.OB) 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 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
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