BAKERSFIELD, Calif.--(BUSINESS WIRE)--American Liberty Petroleum Corp. (OTCBB: OREO) (herein after "American Liberty" and/or "the Company") is pleased to provide background information on the Company's acquisition of the Paradise 2-12 well located in Gabbs Valley, Nye County, Nevada, and of American Liberty's subsequent well completion efforts. The well is situated on the Cobble Cuesta structure, a 12 mile by 5 mile faulted anticline that appears to be positioned to receive oil migrated from deeper areas in the eastern part of Gabbs Valley [1].
The Paradise 2-12 well was initially drilled in the fall of 2010 before the Company had acquired any ownership of the asset. The well reached a total depth of 4,248 feet into the Tertiary Esmeralda Formation within the 26,000-acre Cobble Cuesta structure in the northwest part of Gabbs Valley. A report by Alfred H. Pekarek, Ph.D., Geologist, from January 2008 estimated the Cobble Cuesta structure represents reserves of 4+ billion barrels of oil based on reservoir and production data from producing Nevada oil fields [2].
The Paradise 2-12 well indicated live oil at several zones from mud logs. Of the two drill stem tests (DSTs) run during the drilling, DST No. 2 (3,695' to 3,786') recovered oil and confirmed pressures and permeability [3]. Based on these tests, the BLM determined the well was capable of commercial production, and consequently extended the lease to allow for further completion efforts.
American Liberty Petroleum, through a joint venture agreement ("the JV") with Cortez Exploration LLC and Desert Discoveries LLC, thereafter acquired all rights to the 3,840-acre Cortez lease (BLM Lease number NVN-59901) and the two wells located on it; the Company has a 60% Working Interest and a 48% Net Revenue Interest in the lease. On August 1, 2011, Independence Drilling LLC, the designated operator for the JV, obtained all the necessary permits and commenced a completion program on the Paradise 2-12 well. The results of this work showed a fluid level test of 3,100’ of oil and water in the well bore above the perforation zone of 3,700’-3,782’. A completion rig was brought to the site and swabbing produced a total of 97 barrels (bbls) of fluid consisting of a paraffinic 19.5 API gravity oil and water. Based on this inflow data, American Liberty concluded the well warranted further completion and pumping operation activities in order to fully determine its potential to commercially produce oil.
American Liberty Petroleum's President, Alvaro Vollmers, commented: "We are fortunate to have acquired the Paradise 2-12 well asset within such a promising region. The presence of oil that we have seen coming from the well has spurred us on to maximize on the potential value of both this asset and the sizeable anticline that lies beneath it.”
FOR MORE INFORMATION
Learn more about western America's energy production potential at the American Liberty Petroleum website, where you can also find more information about the Company as well as the latest news releases: http://www.americanlibertypetro.com.
ABOUT AMERICAN LIBERTY PETROLEUM CORP.
Based in Bakersfield, California, American Liberty is a publicly traded company (OTCBB: OREO) focused on reducing America’s need for imported oil through discovering major, new onshore U.S. energy resources and by tapping overlooked or undervalued onshore domestic resources through exploration and development technologies not previously available. Recent significant discoveries, such as Occidental Petroleum's estimated 1+ billion barrels of oil and natural gas equivalents in California*, underscore the potential for developing new oil and gas production solutions in western America. Next door in the under-explored state of Nevada, American Liberty's 6,397-acre Gabbs Valley Prospect is located on the 26,000-acre Cobble Cuesta structure, which is estimated to represent oil reserves of 4+ billion barrels**. The Company's 7,270-acre Kibby Flat Prospect in the Monte Cristo basin, meanwhile, represents estimated ultimate recovery (EUR) of as high as 669 million barrels of oil according to a 2008 report***.
* Occidental Petroleum's Path to Easy Oil. Forbes Magazine, March 29,
2010
** Reserve Estimates for the Cobble Cuesta Structure, Alfred
H. Pekarek, Ph.D., Geologist, January, 2008
*** Kibby Flat Prospect
report, Jerry Walker, Consulting Geologist, Sept. 2008
ON BEHALF OF THE BOARD OF DIRECTORS,
American Liberty Petroleum Corp.
Alvaro Vollmers, President
4900 California Ave
Tower B-210
Bakersfield, CA
93309
OTCBB: OREO.OB
Certain statements in this press release are considered to be 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. American Liberty Petroleum Corp. bases these forward-looking statements on current expectations and projections about future events, which are based on information currently available. The forward-looking statements in this press release may also include statements relating to American Liberty Petroleum Corp.'s anticipated business prospects, new developments, financial performance, strategies and similar matters. American Liberty Petroleum Corp. disclaims any obligation to update any of its forward-looking statements, except as may be required by law.
Cautionary Note to U.S. Investors - The United States Securities and Exchange Commission permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We may use certain terms in this press release, such as “measured,” “indicated,” and “inferred” “resources,” which the SEC guidelines strictly prohibit U.S. registered companies from including in their filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 10-K which may be secured from us, or from our website at http://www.sec.gov/edgar.shtml.
SOURCES:
1. Report on Potential of Gabbs Valley Program. Robert D. Francis,
Ph.D., Geologist, March 2002.
2. Reserve Estimates for the Cobble
Cuesta Structure, Alfred H. Pekarek, Ph.D., Geologist, January, 2008.
3.
Synopsis of Oil and Gas Well Drilling and Testing on Cortez Lease. Jerry
Walker, Consulting Geologist, July 18, 2011.