HOUSTON, Dec. 9, 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 terms on the acquisition of producing oil & gas leases in Archer County, Texas.
The Archer County lease covers 140 Acres with 21 oil wells and 2 injection wells. The lease has current production of a range of 8-10 Barrels of Per Day (BOPD) from currently producing wells. The wells are currently producing from 1,400-1,500 foot pay zones and new logs show potential additional zones up hole. This lease has rights to all depths which include Cisco, Thomas, Gunsight Sands, Milham Sands and KMA Sands. The lease currently has a 100% Working Interest and 80% Net Revenue Interest.
The Purchase and Sale Agreement will be filed in an upcoming 8k outlining the terms and conditions of the transaction. In general terms, Liberty has agreed to pay $100,000 cash plus $300,000 worth of restricted stock with an extended leak out. Sellers will retain a minority carried interest in workover and infill drilling wells subject to a Before Pay Out return to Liberty of 125% of capital invested.
Liberty will immediately accelerate an aggressive work over program to improve production from the current wells on the lease while engineering an infill drilling program to maximize reserve recovery and access additional pay zones. Workovers have already been initiated on the leases by the seller and updates on improved production will be released in subsequent announcements. These workovers will typically improve production to 2-3 BOPD and new drills have historically been completed doing 15-20 BOPD.
"Consistent with our mandates to acquire production with upside in the North Central counties of Texas, we are very pleased to execute terms for the acquisition of this Archer County lease. We are eager to accelerate the development program in progress on this lease as well as execute additional acquisitions in Baylor, Wichita, Jack and Young counties," 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 Texas. 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.
Arthur Roy, CEO
Liberty Energy Corp.
2425 Fountain View Drive
Houston Texas 77057
SOURCE Liberty Energy Corp.