Liberty Updates Activities on Lockhart Lease

Liberty provided a progress report on the ongoing Phase 1 of its well re-entry program on its Lockhart Lease, Caldwell County, Texas.

The company announced the well re-entry on September 8, 2010. The first phase of the five-stage work-over included re-entering 3 wells and the drilling out of 1 well on the lease. The four wells in question are located on 3 tracts of land know as the Alexander A, housing 1 re-entry well called the #2, the Alexander B, housing 2 shut-in wells called the #1 & #3 and the Anton, housing 1 shut in well called the Anton #1.

Heavy rain in Central and South Texas delayed work, as the operations team could not get onto location. The adverse weather halted work for three days and the company has successfully re-scheduled the rigs for the remaining three wells to be equipped.

The company is taking measures to improve well access routes and can confirm the necessary work will be completed shortly, allowing full, uninterrupted access to all the wells.

The company will shortly begin trenching the flowlines on the Alexander B Lease and once completed, will build the firewall around the tanks. Repairs to existing tanks have been scheduled in addition to shredding and clearing on the Alexander A Lease, which will enable the rig and crew access to the well.

The work will enable the company to have 4 wells in production as well as holding the leases by production on this Phase 1 of the project. Initial work will be followed by a detailed evaluation of the possibility of developing the lease to its full potential.

"The work currently being done is necessary and we are very pleased with how the work is progressing. The team is working well, and with the improvements to the access routes we are confident we will be able to complete Phase 1 of the project soon. This should allow for consistent production going forward. We believe these wells will provide us with instant production, and our intention remains to use revenues from these existing wells to proceed with developing the field," commented Ian Spowart, CEO of Liberty Energy.