American Liberty Petroleum Corp. (OTC: OREO)
, a Bakersfield, California-based company, is focusing on the discovery of major, new onshore U.S. energy resources that sharply reduce the nation’s need for imported oil.
Oil prices are once again trading above the $100 a barrel mark. The spike in oil prices in recent weeks has been due to worries about a conflict between the West and Iran, a major oil producer. A number of analysts believe that higher oil prices could derail the fragile U.S. economic recovery.
In such a scenario, it is all the more important to reduce the dependence on imported oil.
OREO is currently focusing on two prospects. The first one is the Gabbs Valley Prospect in Nevada. The other prospect OREO is focusing on is the Kibby Flat Prospect, which is also located in Nevada. The Gabbs Valley Prospect comprises of the 2,557-acre Gabbs Valley lease and the 3,480-acre Cortez lease.
American Liberty, however, is not the only company looking for oil in Nevada. Although oil production in Nevada is not very significant currently, oil analysts say that the state is under explored. And this has attracted a number of companies to the state.
Recently, US Oil and Gas announced the acquisition of additional acreage in Hot Creek Valley in Nevada. With the acquisition, US Oil and Gas now has interest in a total of 15,738 acres at Hot Creek Valley.
However, OREO stands out among the small companies looking for oil in Nevada and this is because of the potential of the Gabbs Valley site. The Gabbs Valley site is holding an estimated 4 billion barrels of oil. If the figure is accurate, it would make Gabbs Valley site one of the biggest onshore oil fields in the U.S.
Another factor that raises prospects of finding oil in the Gabbs Valley is its location. The site is located close to the significant oil and gas discovery made by Occidental Petroleum Corporation (NYSE: OXY) in 2009.