American Liberty Petroleum Corp. exercised its option agreement to receive assignment of Nevada-based oil and gas leases, Gabbs Valley lease with a 75% working interest, Cortez lease with a 60% working interest and the Kibby Flat lease with a 75% working interest, on 27 June 2011. The 3,840 acre Cortez lease was included in the option agreement in its 3rd Amendment on 11 February 2011.
The lease is located near the Gabbs Valley lease, providing an operational advantage for the company as it moves its exploration program forward. Both leases are located on the 26,000acre Cobble Cuesta area in the northwest of Gabbs Valley in Nye County, Nevada. Hydrocarbon shows on both leases and recovered oil on the Cortez lease have resulted in exploratory wells. Based on reservoir and production data from producing Nevada oil fields, a report estimated that the Cobble Cuestra structure represents reserves of over 4billion barrels of oil.