Third Nevada oil exploration well for American Liberty

Source: American Liberty Petroleum Corp.

American Liberty Petroleum Corp. (OTCBB: OREO.OB; herein after "American Liberty" and/or "the Company") is pleased to announce its acquisition of a 60% Working Interest (WI) and 50.7% Net Revenue Interest (NRI) in Nevada-based BLM Lease NVN090504 (the 'Lease').

The 1,760-acre Lease is located on the under-explored 26,000-acre Cobble Cuesta structure in the northwest part of Gabbs Valley in Nye County, Nevada. The new Lease is considered part of the Company's Gabbs Valley Prospect due to its close proximity to the Prospect's other two leases: the 2,557-acre Gabbs Valley lease (75% WI; 63.375% NRI) and the 3,840-acre Cortez lease (60% WI; 48% NRI). With the addition of the new Lease, the Company's Gabbs Valley Prospect now totals 8,157 acres.

The Company's acquisition of a WI and NRI in the Lease was outlined in the April 3, 2012 First Amendment to a June 27, 2011 Operating Agreement (the 'Agreement') between American Liberty Petroleum Corp., Desert Drilling, LLC, and Independence Drilling, LLC (the 'Parties'). The Parties entered into the Agreement to jointly develop and operate certain oil and gas leases, including those leases that comprise the Company's Nevada-based Kibby Flat Prospect and Gabbs Valley Prospect.

Exploratory wells on the Gabbs Valley Prospect's Cortez lease and Gabbs Valley lease have resulted in hydrocarbon shows, and have recovered oil on the Cortez lease. Most recently, the Company's completion efforts on its Paradise 2-12 well on the Cortez lease resulted in production of approximately 200 barrels of oil/water mixed fluid. A sample of the fluid was sent to the Foreland Eagle Springs refinery for further analysis, the results of which will be used for evaluating the next step of the well completion process.

American Liberty Petroleum's President, Alvaro Vollmers, commented: "We're fortunate to have this opportunity to expand the holdings that make up our Gabbs Valley Prospect. The other two leases in the Gabbs Valley Prospect have already demonstrated their petroleum potential through hydrocarbon shows, and the production of oil from the Paradise 2-12 well has validated there is live oil in the Gabbs anticline. We can now begin work on how to best assess and realize this new lease's potential.”


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