Alamo provided a Corporate Update with all 7 new wells from the drilling campaigns in Texas, Kentucky and West Virginia encountering hydrocarbons.
West Virginia -- Florence Valentine, Ritchie County
The Valentine #1 well is located on approximately 115 acres, which was originally drilled to approximately 5,000 feet in 1981 and produced from the Devonian Shale.
The well was completed targeting the upper shallow zones identified as the 5th Sand formation from 2810' - 2714', Gordon sand from 2642' - 2528', 30 Foot Sand from 2348' - 2320', Gantz sand from 2294' - 2226' & Berea sand from 2196 - 2190' ft.
The well has now been put on production and is producing significant amounts of oil and natural gas at a rate of approximately 100,000 cu.ft. of natural gas per day and oil at a rate as high as 44 bbls per day at 50/api gravity over approximately 20 days of production.
With these positive results, we believe that there is a possibility of drilling 3-4 new wells on the acreage at 20-25 acre spacing with potential results similar to the Valentine #1 well.
Texas -- Lozano Lease, Frio County
Located on 110 acres, our producing wells have continued to produce without downtime or requiring significant maintenance work. The company is currently reviewing options to drill new wells in order to boost production from the acreage.
Texas -- Jack D Hubbard Lease Development, Brown County
High gas pressure from the well has resulted in only a partial completion of the targeted zones. We have decided to put the well on limited production while we review options for completing the well.
Kentucky -- H.V Taylor Lease, Gradyville Oil Field, Adair County
Drilling of the five wells located on 55 acres was completed in June with the wells encountering hydrocarbons in the Granville, Murfreesboro and Knox formations. The wellbores have been videoed and subjected to high definition triple combo logging and sidewall core sampling.
We are in the process of preparing to complete the wells. In anticipation of production, we have prepared surface facilities such as the pumpjacks, flowlines and tank batteries.
United Kingdom -- Wessex/Weald Province Lease, Southern England
We are currently analyzing data from our seismic lines. The results will determine the route for the seismic shoot. Our aim is to shoot the seismic later this year.
Alamo's four UK onshore license blocks (TQ26, TQ36, TQ46, TQ56) lie directly north of the producing Palmer's Wood Oilfield operated by Star Energy, a subsidiary of Petronas. According to an independent geological report, the hydrocarbon resource potential for all four blocks is approximately 236 million barrels.
Philip Mann, Alamo's Chief Financial Officer, said, "We feel that we are inline with our growth targets. We believe our initial production rates from our new wells will significantly increase our projected monthly revenues and we intend to continue our aggressive growth strategy by acquiring more domestic acreage and drilling new wells to maximize the potential of our current acreage."
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