American Liberty Petroleum Corp. Provides Background on Paradise 2-12 Well Acquisition & Completion Efforts in Gabbs Valley, Nevada
Business WirePress Release: American Liberty Petroleum Corp. – Tue, Mar 20, 2012 8:59 AM EDT
BAKERSFIELD, Calif.--(BUSINESS WIRE)--
American Liberty Petroleum Corp. (OTCBB: OREO) (herein after "American Liberty" and/or "the Company") is pleased to provide background information on the Company's acquisition of the Paradise 2-12 well located in Gabbs Valley, Nye County, Nevada, and of American Liberty's subsequent well completion efforts. The well is situated on the Cobble Cuesta structure, a 12 mile by 5 mile faulted anticline that appears to be positioned to receive oil migrated from deeper areas in the eastern part of Gabbs Valley .
The Paradise 2-12 well was initially drilled in the fall of 2010 before the Company had acquired any ownership of the asset. The well reached a total depth of 4,248 feet into the Tertiary Esmeralda Formation within the 26,000-acre Cobble Cuesta structure in the northwest part of Gabbs Valley. A report by Alfred H. Pekarek, Ph.D., Geologist, from January 2008 estimated the Cobble Cuesta structure represents reserves of 4+ billion barrels of oil based on reservoir and production data from producing Nevada oil fields .
The Paradise 2-12 well indicated live oil at several zones from mud logs. Of the two drill stem tests (DSTs) run during the drilling, DST No. 2 (3,695' to 3,786') recovered oil and confirmed pressures and permeability . Based on these tests, the BLM determined the well was capable of commercial production, and consequently extended the lease to allow for further completion efforts.
American Liberty Petroleum, through a joint venture agreement ("the JV") with Cortez Exploration LLC and Desert Discoveries LLC, thereafter acquired all rights to the 3,840-acre Cortez lease (BLM Lease number NVN-59901) and the two wells located on it; the Company has a 60% Working Interest and a 48% Net Revenue Interest in the lease. On August 1, 2011, Independence Drilling LLC, the designated operator for the JV, obtained all the necessary permits and commenced a completion program on the Paradise 2-12 well. The results of this work showed a fluid level test of 3,100’ of oil and water in the well bore above the perforation zone of 3,700’-3,782’. A completion rig was brought to the site and swabbing produced a total of 97 barrels (bbls) of fluid consisting of a paraffinic 19.5 API gravity oil and water. Based on this inflow data, American Liberty concluded the well warranted further completion and pumping operation activities in order to fully determine its potential to commercially produce oil.
American Liberty Petroleum's President, Alvaro Vollmers, commented: "We are fortunate to have acquired the Paradise 2-12 well asset within such a promising region. The presence of oil that we have seen coming from the well has spurred us on to maximize on the potential value of both this asset and the sizeable anticline that lies beneath it.”
80 posts bashing OREO in less than a month? Wow, this is more than a hobby for you. Now you are just "guessing" there will be a news release soonest? You sound like a disgruntled competitor, trying to trash the company in order to steal their leases..., or maybe someone with inside information shorting the stock. Let us see if your predictions are correct...