American Liberty Petroleum Corp. announces Foreland refining’s crude oil purchase contract for all production from Gabbs oil field

Wednesday, Apr 25, 2012

American Liberty Petroleum Corp. (OTCBB:OREO.OB; herein after “American Liberty” and/or “the Company”) is pleased to announce that on April 19, 2012, Foreland Refining Corporation (“Foreland”) signed an agreement to purchase all of the Company’s crude oil production from the Gabbs Valley oil field in Nye County, Nevada. Foreland operates the Eagle Springs Refinery in Ely, Nevada, in neighboring White Pine County to the east. The refinery receives crude oil from Nevada’s Railroad Valley and other oil wells to process into asphalt, diesel fuel and other petroleum products.

“We’re fortunate to now have an agreement in place with a nearby refiner for the purchase of all subsequent production from our Gabbs Valley-based activities. Our next step is to maximize on the production potential of the Paradise 2-12 well while further exploring our other opportunities in the area.”

Foreland signed the crude oil purchase agreement with Independence Drilling LLC, the designated operator for a joint venture (“the JV”) between American Liberty Petroleum, Cortez Exploration LLC and Desert Discoveries LLC. The JV was formed to acquire and develop oil and gas properties in Nevada with the aim of petroleum production.

According to the terms of the crude oil purchase agreement, Foreland will pay the “Big West Oil” Black Wax crude posting adjusted for gravity and B.S. & W. and less freight delivered to Foreland’s Eagle Springs Refinery. Foreland will make its payments via wire transfer of funds on the 20^th day of the month following the month of delivery.

American Liberty Petroleum’s President, Alvaro Vollmers, commented: “We’re fortunate to now have an agreement in place with a nearby refiner for the purchase of all subsequent production from our Gabbs Valley-based activities. Our next step is to maximize on the production potential of the Paradise 2-12 well while further exploring our other opportunities in the area.”

FOR MORE INFORMATION

Learn more about the Paradise 2-12 well and the Gabbs Valley Prospect at the American Liberty Petroleum website, where you can also find more information about the Company as well as the latest news releases: http://www.americanlibertypetro.com.

Source: Business Wire

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