Alamo Wraps Up KYTX Acquisition
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."