American Liberty Petroleum Corp. Announces Termination of Consulting Agreement with Netherland, Sewell & Associates

BAKERSFIELD, Calif.--(BUSINESS WIRE)--

American Liberty Petroleum Corp. (OTCBB: OREO) (herein after American Liberty and/or the Company) announces today that oil and gas consulting services firm Netherland, Sewell & Associates Inc. (NSAI) has terminated its consulting agreement with American Liberty as of July 18, 2012.

On April 27, 2012, American Liberty signed an engagement letter with NSAI to perform consulting petroleum engineering work as needed to assist the Company in determining next steps in the development of its Nevada-based Cortez operation. Though the Company shared information with NSAI after the agreement was signed, NSAI did not provide any specific consulting services before deciding to terminate the agreement.

Prior to the agreements termination, American Liberty had planned to undertake additional steps to stimulate the Paradise 2-12 well, one of two wells located on the 3,840-acre Cortez lease. Previous stimulation efforts included the completion of a solvent (xylene) wash treatment and the installation of a heating system. The NSAI engagement was intended to determine next steps following the completion of the stimulation program, including determining if it would be advisable to drill a third well on the Cortez lease. The Company will now re-evaluate these plans while considering all other development options.

The two wells on the Cortez lease (Cobble Cuesta 1-12 and Paradise 2-12) are situated on the Cobble Cuesta structure. The Cobble Cuesta 1-12 well was drilled on the Cobble Cuesta structures crestal area in 2006-2007 and had shows of live hydrocarbons. The Paradise 2-12 well was drilled in 2010, and included a drillstem test that recovered 87 feet of oil with pressure data indicating a low permeability oil reservoir.

FOR MORE INFORMATION

Learn more about the Cortez operation 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.

ABOUT AMERICAN LIBERTY PETROLEUM CORP.

Based in Bakersfield, California, American Liberty is a publicly traded company (OTCBB: OREO) focused on reducing Americas need for imported oil through discovering major, new onshore U.S. energy resources and by tapping overlooked or undervalued onshore domestic resources through exploration and development technologies not previously available. Recent significant discoveries underscore the potential for developing new oil and gas production solutions in western America. In the under-explored state of Nevada, American Libertys 8,157-acre Gabbs Valley Prospect is located on the 26,000-acre Cobble Cuesta structure. The Companys 7,270-acre Kibby Flat Prospect is located in the Monte Cristo basin.

ON BEHALF OF THE BOARD OF DIRECTORS,

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American Liberty Petroleum Corp. Announces Termination of Consulting Agreement with Netherland, Sewell & Associates