American Liberty Petroleum Corp. (OTC: OREO ) is getting closer to striking oil every day. In fact, technically speaking it already has struck oil; now it's just working on a plant to fully develop and maximize the promising well that it's found.

  A Past press release from OREO, the Paradise 2-12 prospect that was briefly mentioned back on February 13th (one of three prospects American Liberty Petroleum was working on) is much closer to yielding than we may have initially inferred.

The well itself has actually been in place since late 2010, in the 26,000 acre Cobble Cuesta area that Alfred Pekarek had identified as a potential source of up to 4 billion (or more) barrels of oil in 2008. Subsequent testing by American Liberty Petroleum Corp. and partner Independence Drilling LLC in the meantime indicated that not only was oil present, but it was capable of being extracted using conventional drilling technologies.

A total of 97 barrels of crude has been recovered, just from sample drilling/testing alone, and it's good stuff. No, it's not a lot, but this isn't the actual commercial-level drilling effort either. The work so for simply suggests there plenty of oil top tap into.

These press releases themselves offered more technical jargon than the average investor needs or can understand. However, the ultimate message is still a good one. In fact, it's the most encouraging drilling news we've heard from OREO yet. While the original Gabbs Valley and Kibby Flat prospects being discussed late last year were enticing, the Paradise well is the closest the company has actually been to tapping into the multi-billion-barrel source that's waiting under the earth in western Nevada. The odds seem as if the Paradise 2-12 dig is also going to be the first to produce.