Wednesday, October 24, 2012

Liberty Energy Corp. (LBYE) Update on Bulgarian Gas Assets, 11 Trillion Cubic Feet of Natural Gas on Adjoining Block

Liberty Energy, the Houston-headquartered oil and gas E&P with a substantial Texas portfolio consisting of over 12 key leases with exceptional coverage on multiple geological pay zones, as well as royalty rights on the A-Lovech exploration block in northwest Bulgaria (an over 1.17M-acre gas property of some choice, low-sulphur condensate), offered markets an update today on the status of the company’s Bulgarian project.

The company’s prime position in the 1,830 square mile A-Lovech exploration block, which also contains the deepest well done in the entire country in the last three decades, known as the Deventci-R1 (19.3k feet into the Lower Triassic Alexandrovo formation, with bottom-hole pressures up to 11.5k psi, the highest pressure of any gas reservoir in the country), represents a strong second support column to LBYE’s Texas assets. With preliminary test output around 250 Mcf per day, Deventci R-1, in-focus since the company acquired these rights in Bulgaria via the 2009 purchase and sales agreement, sits on a gas deposit with a capacity of around 6 billion cubic meters (encountered saturated reservoirs in the Dolni Dabnik – Middle Triassic Doirentsi formation, with potential in the Upper Triassic Rusinovdel and Lower Jurassic Ozirovo).

Exceptionally high-quality gas like this with low sulfur content is a gold mine for LBYE shareholders and the multi-formation target capability of the company’s Bulgarian assets offers compelling long-term vectors. The recent report on neighboring block well, Peshtene R-11, done by operator Transatlantic Petroleum Ltd. (10.5k feet down into the Etropole formation), validates clear parallels to U.S. shale plays and the geological correlation looks unmistakable. Transatlantic ran gross unrisked best estimate figures of 11 Tcfe on the prospective resources in their Etropole position and is merely caught up right now cutting Parliamentary red tape, understandably eager to strike out beyond the Peshtene R-11 exploration well.

Great news for Liberty Energy that really puts a shine on their own position and analytical efforts in A-Lovech, something which makes the company’s strategic European stance (encompassing potential sites elsewhere in Bulgaria, as well as surrounding European countries) all the more impressive. LBYE is clearly demonstrating their aptitude for applying the vast operational experience garnered in Texas to Europe and one might well expect similar traction in other low-risk European opportunities in the future.

CEO of LBYE, Ian Spowart, was overjoyed at the news of the 11 trillion cubic feet of natural gas adjoining the company’s property. Spowart assured shareholders that the company was moving rapidly to engage LBYE’s partners in order to take the project forward as soon as possible.

Taken against a backdrop of the company’s 100% working interests in some 1k plus acres in Texas (Bastrop, Caldwell, and Eastland Counties – targeting the Austin Chalk, Buda, Dale Lime, Edwards, Marble falls, and Mississippian), this kind of potential in Europe makes LBYE look like a considerable value proposition for investors.

To learn more about Liberty Energy Corp., please visit the company’s website at: www.Energy-Liberty.com

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