Liberty Commences Re-Entry Work in Tx.

Liberty announced that work has started on the Dahlstrom #1 located on 58 Acres in Jackson County, Texas.

The company announced the well re-entry on August 19, 2010. The intention of the re-entry was to perforate the intervals with potentially productive sands, and increase the level of production of natural gas. It was expected the proposed re-entering of the Dahlstrom #1 well would reduce the hydrostatic weight of the water in the well, which in turn could lead to production increases of ten to fifteen times the level of output achieved at the time of the announcement.

When work began pressure was low due to suspected sandlocks (build up of sand in the tubing), however, upon completion of the initial work, the well had 600PSI and finally rose to 1625PSI. The Company estimated about 30+ barrels of sand were removed from the well, which had been about 12 inches thick all along the bottom of the open top tank.

The Company reported a total of 17 sandlocks at differing depths in the tubing, which inevitably caused the partial blockage in the well.

"The results of the initial work looks great; once completed, all indications lead us to believe we could have a new well on our hands that could produce ten to fifteen times the level of output previously achieved. We further believed there could be the opportunity to further develop the acreage by drilling new wells," said Ian Spowart, President and CEO of Liberty Energy Corp.

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