HOUSTON, Aug. 20, 2013 /PRNewswire/ -- Liberty Energy Corp. (OTCQB: LBYE) ("Liberty" or "the Company") an independent oil and gas company targeting onshore Texas oil conventional plays with a current focus on the Fort Worth Basin, today announced that the Company has executed a Letter Of Intent (LOI) to acquire 1,100 Acres with 17 oil wells, 4 injection wells, current production of 8 Barrels of Per Day (BOPD) from operating wells with Working Interest 75% / Net Revenue Interest 80% in an all restricted common stock transaction.
Phase 1 development on the Baylor County, Texas leases includes a workover of each of the 17 wells with expectations of 2.5-4 BOPD per well after workover. This is based on recent activity, local area results and our operating partners expertise. There are 4 phases planned to increase the leases current production through workovers, radial jet horizontal drilling, recompletions and new infill drilling.
The Baylor County Fields have historically produced many opportunities with multiple pay zones in the target areas that range from as shallow as 150 feet to over 2000 feet or more in total depth. On these leases, two pay zones account for all recorded production, the shallow gunsight sandstone from 1400-1500' and the 2000' Cisco Sand. The leases are estimated to contain a minimum of 10-15 multiple infill drilling locations with expectations based on historical IP (initial production) rates of between 20-30 BOPD.
Although the LOI allows for 60 days to complete the Purchase And Sale Agreement (PSA), the Company has submitted a PSA draft for review to close the transaction as quickly as possible, subject to final due diligence and legal review. This acquisition is the first of several that the Company intends to acquire within the North Central Texas / Fort Worth Basin which contains numerous oil and gas producing formations consisting of both conventional and unconventional reservoirs. Some of the production trends in the area include the Strawn, Bend, Marble Falls, Barnett Shale, Chappel and Viola formations.
"This type of acquisition will be the model for continued growth for Liberty Energy Corp, offering both current production and upside through development. We look forward to aggressively making additional acquisitions to build up a nice portfolio of production and development potential for years to come," stated, CEO Arthur Roy.
ABOUT LIBERTY: Liberty Energy Corp. (OTCQB:LBYE) is an Independent Oil and Gas Exploration and Production Company dedicated to the sourcing and production of oil and gas onshore in the United States. Headquartered in Houston, Texas, the company has acquired several leases with extensive potential for future development.
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.
David Sexton, Investor Relations Executive
Liberty Energy Corp.
Two Allen Center
1200 Smith Street
Houston, TX 77002
SOURCE Liberty Energy Corp.