Alamo Energy has received approval from the Department of Energy and Climate Change (DECC) to be the block operator for four UK onshore license blocks (TQ26, TQ36, TQ46, TQ56) in the south of England totaling 400 square kilometers.
This approval will provide Alamo with control of the pace, cost and direction of tenders/seismic/planning stages. Under the terms of the license, the joint partners have to undertake 60 km of 2D seismic survey. Alamo will hold a 90% working interest on the license, which, according to an independent geological report, estimates Alamo's potential median stake to be approximately 236 million stock tank barrels of oil initially in place (STOIIP).
"This is a significant milestone in the growth of Alamo," said Allan Millmaker, Alamo's Chief Executive Officer. "A project of this size and potential represents a huge opportunity for our company. It is well known that onshore exploration offers a range of economic benefits, including lower seismic, drilling and lifting costs. Being the exploration operator gives us the advantage of being able to determine the direction of the project."
Looking toward the future, Alamo intends to purchase any seismic data that is available and commence planning and preparation for a seismic shoot over the acreage, which lies directly north of the producing Palmers Wood oil field.
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