BAKERSFIELD, Calif.--(BUSINESS WIRE)--American Liberty Petroleum Corp. (OTCBB: OREO) (herein after "American Liberty" and/or "the Company") is pleased to announce the expansion of its project portfolio through the addition of the 3,840-acre Cortez lease. As well, on June 27, 2011, the Company exercised its option agreement from May 11, 2010, thereby receiving assignment of the following 3 Nevada-based Oil and Gas leases: Gabbs Valley lease (75% Working Interest; 63.375% NRI), Cortez lease (60% WI; 48% NRI), Kibby Flat lease (75% Working Interest; 63.375% NRI).
The Cortez lease was originally included in the option agreement through the agreement's 3rd Amendment on February 11, 2011. The lease consists of 3,840.560 acres in sections 1, 12, 13, 24, 25, and 36 of Township 12 North and Range 34 East (Mt. Diablo Base and Meridian). The BLM issued the Cortez lease on August 24, 1995. It was subsequently committed to the Cobble Cuesta Unit on March 1, 2005. Drilling of the Empire No. 1-12 Cobble Cuesta well extended the lease through November 28, 2010. Its status became "Held By Production" (HBP) on November 3, 2010 due to the discovery of oil in the Empire No. 2-12 Paradise well (recovered 87 feet of oil with pressure data indicating a low permeability oil reservoir).
The Cortez lease is located in close proximity to the Company's Gabbs Valley lease, which will provide an operational advantage as American Liberty moves its exploration program forward for the leases. Exploratory wells have resulted in hydrocarbon shows on both leases and, as mentioned, recovered oil on the Cortez lease. Both leases are located on the 26,000-acre Cobble Cuesta structure in the northwest part of Gabbs Valley in Nye County, Nevada. 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.
"We're excited to demonstrate our intention of exploring and developing Nevada's potential energy resources," commented Alvaro Vollmers, American Liberty's President. "We can now proceed with rapidly advancing the initial oil discovery work already performed on the Cortez lease."