Liberty Energy Corp. (OTCQB: LBYE), an independent oil and gas company targeting onshore Texas oil conventional plays with a current focus on the Fort Worth Basin, says that the company has executed a Letter Of Intent (LOI) to acquire 1,100 acres with 17 oil wells, four injection wells, current production of 8 barrels of oil per day (BOPD) from operating wells with a working interest of 75% and net revenue interest of 80% in an all-restricted common stock transaction.
Phase 1 development on the Baylor County, Texas, leases includes a workover of each of the 17 wells, with expectations of 2.5-4 BOPD per well after workover. The Baylor County leases are estimated to contain a minimum of 10-15 multiple infill drilling locations with expectations based on historical initial production rates of between 20-30 BOPD.
Although the LOI allows for 60 days to complete the Purchase and Sale Agreement (PSA), Liberty has submitted a PSA draft for review to close the transaction as quickly as possible, subject to final due diligence and legal review. This acquisition is the first of several that Liberty intends to acquire within the North Central Texas/Fort Worth Basin, which contains numerous oil and gas producing formations consisting of both conventional and unconventional reservoirs. Some of the production trends in the area include the Strawn, Bend, Marble Falls, Barnett shale, Chappel and Viola formations.