HOUSTON, Oct. 13, 2010 (GLOBE NEWSWIRE) -- Liberty Energy Corp. (OTCBB:LBYE) ("Liberty" or "the Company") is buoyed by the continual investment from majors in the Eagles Ford Shale, located near the company's Lockhart Lease, Texas.
The Company has recently been made aware of continued investment activity by a number of large international operators into the Eagle Ford Shale located near the company's Lockhart Lease, Texas. The most recent being announced this week, through agreements with Enduring Resources LLC and Talisman Energy Inc., Statoil will acquire 67,000 net acres in the Eagle Ford shale formation in Southwest Texas. Statoil feel that "the magnitude of the shale resources in North America and the significant role these resources are expected to play in the future energy mix make this an attractive opportunity," stated John Knight, senior vice president, business development and global unconventional gas.1
Statoil and Talisman, both NYSE listed companies, have formed a 50/50 joint venture for the purpose of developing assets in the Eagle Ford shale. As part of the joint venture, Statoil and Talisman have jointly acquired the Eagle Ford assets, comprising 97,000 acres, in a $1.325 billion transaction. The purchase price equates to about US$10,900 per acre. Furthermore, Statoil will acquire 50% of Talisman's existing Eagle Ford acreage and production for $180 million. As a result, Statoil and Talisman will together hold 134,000 net Eagle Ford acres and associated assets and production in the joint venture. 1
It is estimated the results of these transactions will deliver Statoil with recoverable resources of approximately 550 million barrels of oil equivalent.
This acreage is described to be located in an attractive, liquids rich area of the Eagle Ford play. Statoil expects that a significant proportion of the revenue from Statoil's Eagle Ford acreage will come from gas liquids and condensate which are competitively located to be sold into the petrochemical and refinery centers in Texas.2
In addition to this news, the Chinese oil company CNOOC have also agreed to pay $1.08bn for a 33% stake in a U.S. company's 600,000 net acres in the Eagle Ford Shale project in Southwest Texas. It is expected to complete the deal by the end of the year.3
The Eagle Ford Shale has recently been described as being 'Hot' by analysts at Tudor Pickering Holt, the research firm who have recently been working on the above described CNOOC deal. They went on to be quoted saying "Eagle Ford M&A activity remains on fire."4
"We are buoyed by the amount of majors showing an interest in the Eagle Ford Shale. We feel positive that our assets represent a good basis for our companies development, and will ultimately grow in value," commented Ian Spowart, CEO and President of Liberty Energy Corp. For more information on the activities of the Company, please see the Liberty Energy website www.energy-liberty.com/
ABOUT LIBERTY: Liberty Energy Corp. (OTCBB:LBYE) 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 U.S. 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
References
1. http://www.statoil.com/
2. http://finance.yahoo.com/
3. http://www.bbc.co.uk/
4. http://www.foxbusiness.com/