Liberty Energy Finalizes Tx. Acquisition
Liberty Energy Corp. announced the completion of its acquisition of over 1,000 acres in Bastrop, Caldwell and Eastland Counties, Texas.
The acquisition falls in line with the Company's strategy of growing shareholder value through acquiring assets in proven onshore oil and gas play within the US. The leases are considered to be highly prospective, with a mixture of work-over potential and exploration and development drilling.
The Company is working to finalize geological and geophysical work plans to be completed on the new leases. All of the new leases are considered to be low risk being positioned within proven, multiple payzone, producing counties. The Company also intends to work with existing partners to investigate and further develop the new and existing leases.
Ian Spowart, Chief Executive Officer, commented: "Whilst our strategy is to expand aggressively, we are always looking to maximize returns and increase shareholder value. The new acreage is a great addition to our existing portfolio and we look forward to providing further information on geological and geophysical work to be carried out on the new leases in due course."
Bastrop County is located in South Texas. The majority of production in Bastrop is attributed to the Austin Chalk and Navarro formations.1 The county presently houses over 1,700 wells and over 170 operators including; Texas Vanguard Oil Company, Chalker Operating Inc. and Petro-Gas Inc.2 The Eagle Ford Shale formation is in the oil maturity window and is present in Bastrop County. The play is 50 miles wide and an average of 250 feet thick at a depth between 4,000 and 12,000 feet. The oil reserves are estimated at 3 billion barrels of oil (BBO) with potential output of 420,000 barrels of oil per day (bopd).1 Major producers in the county include Anadarko, Exxon-XTO and PetroHawk. Liberty will, under the terms of the LOI, acquire five leases comprising approximately 630 highly prospective acres within the county.
There are four main pay zones within Caldwell County, the Sepertine, Dale Lime, Austin Chalk and Edwards. There are currently 385 operators (including Eagle Ford Oil Co., Inc., Luling O&G LLC and Texas Petroleum Investment Co.) and nearly 9,000 wells in Caldwell County.3 From March 2010 to March 2011 the county produced over 1 million barrels of oil (MMBO).4 Liberty will, under the terms of the LOI, acquire two leases comprising approximately 300 greatly prospective acres within the county.
In addition to having the Marble Falls, Duffer and Mississippian formations, Eastland County is the westernmost extension of the Barnett Shale play and can be considered as part of the active Barnett Shale play area.5 The Bend Arch has had a significant effect on the Barnett Shale in regards to regarding its burial history and geo-thermal makeup. The Barnett is the source rock for the hydrocarbons produced from many of the shallower zones over the Bend Arch such as the Marble Falls and Duffer. There are currently 893 operators (including North Ridge Corporation, Sun Expl. & Prod. Co.-Abilene and B & B Oil, Inc.) and over 10,900 wells in Eastland County.2 Using a geology-based assessment methodology, the U.S. Geological Survey estimated a mean of 26.7 trillion cubic feet (TCF) of undiscovered natural gas, a mean of 98.5 MMBO undiscovered oil, and a mean of 1.1 billion barrels of undiscovered natural gas liquids (BBNGL) in the Bend Arch-Fort Worth Basin Province.6 Liberty will, under the terms of the LOI, acquire one lease comprising approximately 110 considerably prospective acres within the county.