Alamo Energy has executed definitive agreements to acquire the KYTX group of companies. Under the terms of the deal, Alamo will pay Range Kentucky Holdings LLC in a cash plus stock deal valued at $6.775 million.
The KYTX group of companies, located in Knox County, Kentucky in the midst of the prolific Appalachian basin, is comprised of KYTX Oil & Gas LLC, KYTX Pipeline LLC, and KYTX Drilling Company LLC.
The assets acquired include 71 wells located on approximately 4,040 acres, all of which are held by production, a strategic 23-mile pipeline network capable of handling up to 9,000,000 mcf connected into the Delta pipeline system and a drilling company with one drilling rig, one service rig and associated well-servicing equipment.
Alamo believes the land-to-resource ratio enables 20-acre spacing, which will allow for up to 131 additional wells.
Allan Millmaker, Chief Executive Officer, commented, "The KYTX acquisition creates a solid platform for Alamo to make the transition from 'non-operator' to 'operator' and become a significant player in the Appalachian basin. We believe the shallow gas assets provide a stable, long-life revenue stream whilst giving a growth potential on the acreage. The KYTX infrastructure and resources will enable Alamo to increase production and allow us continue to pursue our aggressive growth strategy in the region."
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