Liberty Notes Results from Tx. Re-Entry Program

Liberty announced the initial results of the Dahlstrom #1 well re-entry program in 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.

When work began pressure was low due to suspected sandlocks; however, upon completion of the work the wells pressure stabilized at around 1650PSI.

The company has confirmed that initial production following the re-entry has been three times higher than the level of production prior to the work. The pressure has been so high that the well has been producing despite all the valves being turned off which is strictly due to the amount of down hole pressure. As a result of this pressure gas has been able to force its way through each one of the valves all the way down the flow line to the gas gatherer's meter.

"We are really excited by the initial results of the work. The key point to take from this is that we are producing and can now use revenues from this well to cover overheads, leaving future investment for both new and existing operations. We are still closely monitoring and testing the well and anticipate some further work shortly but we still believe the well could produce ten to fifteen times the level of output previously achieved," said Ian Spowart, President and CEO of Liberty Energy Corp.