HOUSTON, Jan. 17, 2012 (GLOBE NEWSWIRE) -- Liberty Energy Corp. (OTCBB:LBYE.OB) ("Liberty" or "the Company") provides an update on the Deventci-R1 discovery well, Bulgaria.
In 2010 the Company announced it had concluded the assignment of overriding royalty rights (ORRI) to a proven multi billion cubic feet of natural gas property in North-West Bulgaria. The Company confirmed in 2011 that the New York Stock Exchange listed TransAtlantic Petroleum, with a market capitalization of circa $1billion, closed an agreement to buy Direct Petroleum Bulgaria EEOD (the current operators).
TransAtlantic Worldwide Ltd., a subsidiary of TransAtlantic Petroleum, has now entered into a joint venture agreement with LNG Energy to begin exploratory drilling in Bulgaria's unconventional Etropole formation.
The agreement, subject to certain conditions, including the issuance of the Etropole Concession by the Bulgarian government, calls for LNG to invest US$7.5 million to start drilling an exploratory well on the A-Lovech license in Bulgaria. Additionally, LNG has agreed to fund up to an additional US$12.5 million, of which US$7.5 million is to drill a second exploratory well, the Peshtene R-11.1 In return, LNG would acquire a 50% working interest in the Etropole Concession. If the concession is not granted, LNG would have no further obligations under the agreement.2
The Peshtene R-11 well has been expected to be drilled to 10,500 feet, to core and test the unconventional Etropole formation. The A-Lovech exploration license is 100% owned and operated by Direct Bulgaria, and covers approximately 565k acres in northwest Bulgaria, all of which is prospective for the Etropole formation1. The agreement with LNG covers the southern 405,000 acres of the license.
Direct Bulgaria plans to file for a production concession over this southern portion, supported by the results of the Peshtene R-11 well.
In the northern portion of the A-Lovech license, called the Koynare Area, Direct Bulgaria has applied for a production license following their evaluation of the Deventci-R1 discovery well. These concessions cover 160,000 acres (648 sq kms), which contain a conventional gas discovery in the Jurassic-aged Orzirovo formation which is also prospective for the Etropole. The discovery well, the Deventci-R1, is currently producing approx. 250 thousand cubic feet per day on a limited test basis, which is processed in a compressed natural gas facility adjacent to the well.
The A-Lovech license is also estimated to contain over 300,000 acres prospective for Etropole shale (at a depth of approximately 3,800 meters), which was recently certified as a geologic discovery by the Bulgarian government. It is anticipated that coring the Etropole interval in the Deventici R-2 well will greatly enhance the technical understanding of the potential of this shale play. The third established prospective area is a deep gas field on the Aglen block license that produced approximately 9 Bcf before being abandoned in the late 1990s.2
"Having an ORRI entitles us to royalty interest on all future revenues and reserves located on the block. LNG will bring hands-on experience to the exploration of the Etropole formation for natural gas. The drilling of an Etropole test well will also increase the operators technical understanding of the play, and is the first step in efforts to unlock the long-term potential in the Etropole. Should the Etropole prove productive, this location lies less than 10 km from existing pipeline infrastructure, and production will benefit from regional natural gas prices that are currently around $10/Mcf. We excited by the news of a new partner in this proven multi billion cubic feet asset," 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 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
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