Liberty to Ramp Up Texas Asset's Production
Liberty Energy announced the signing of the assignment of a productive oil and gas lease in Texas. The Company has acquired the asset with a view to increasing production and investigating future development of the lease.
The Dahlstrom lease is a single well property covering approximately 58 acres producing reserves of natural gas as well as holding the master meter for the area, tying surrounding wells to the lease and giving potential future revenue from any additional wells drilled or re-entered in the surrounding area. There is also a potential opportunity for the site to be re-entered for workover operations with a view to increasing production. The lease is currently HBP (held by production), and so Liberty has limitation on the duration of ownership while it continues to produce.
The Dahlstrom lease is located in Jackson County, an area which covers over 840 square miles within the resource-rich state of Texas. The Dahlstrom lease is located within the Western Gulf province, an area that contains a section of Texas south and east of the Ouachita Fold Belt, Louisiana south of the Lower Cretaceous shelf edge and, Texas Railroad Districts 1 through 4. Boundaries of the site include the Ouachita Fold Belt, the southern boundary of the East Texas Basin, the southwest boundary falls on the Texas-Mexico border, the southern boundary of the Mississippi-Louisiana Salt Basins, the offshore 3-league limit in Texas, and the offshore 3-mile limit in Louisiana.
The Western Gulf area is one of the most heavily explored provinces in the United States and covers 116,599 sq mi., allowing us extensive data on several hundred thousand oil and gas wells. So far, exploration has led to the discovery of 2,518 significant oil and gas fields comprising 3,883 reservoirs.
Chief Financial Officer of Liberty Energy Corp. Dan Martinez-Atkinson said, "The assignment of this lease is a significant step for Liberty and presents us with fantastic opportunities in both the short and long term. More specifically, we will now begin receiving a revenue stream from this lease. Production and associated revenue will help sustain the company, and allow us to move on to our next phase of expansion."