Alamo Brings Six Appalachian Wells Online
Alamo Energy has recently brought online six natural gas wells as part of its ongoing expansion in the Appalachian Basin.
Under its previously announced 25-well program, Alamo now has completed 11 wells utilizing the Company's in-house workover capabilities and specialist service companies. Based on flow tests, the yield from these 11 wells is approximately 1,229,000 cubic feet per day.
"We are encouraged by our latest well additions, which far exceeded our projected flow-test targets," Allan Millmaker, Chief Executive Officer, said. "Our flow-tests results from these 11 wells are triple our current production rate; this is in-line with our corporate strategy of maximizing near-term revenue from our Appalachian acreage. We remain confident in Alamo's strong competitive position in the region. Unlike some of our peers, we are not burdened by concerns about expiring acreage or high renewal costs, which enables us to focus our resources on ramping up capacity to drive revenue."
In April of this year, Alamo acquired the KYTX group of companies in a transaction valued at $6.8 million. The acquisition provided Alamo with a significant operating presence in the Appalachian basin, which now includes 6,540 contiguous acres, a strategic 23-mile pipeline network and 71 gas wells. The Company estimates that current spacing on the acreage allows for the opportunity of creating 103 additional wells. New wells will be connected to its existing pipeline infrastructure, which has a daily capacity of 9 million cubic feet.