Alamo, Northdown Team Up to Develop UK Properties
Alamo has formed a partnership with Northdown Energy to develop Alamo's UK properties. Under the terms of the partnership, Alamo will farm out to Northdown a 45% working interest in its four onshore license blocks located in the Weald basin. Alamo will retain a 45% working interest in the properties. Aimwell Energy will retain 10% interest in the blocks. The agreement has received approval from the UK Department of Energy and Climate Change (DECC).
"We are excited to partner with Northdown Energy, which is led by UK oil and gas veteran explorer Peter Ross," said Allan Millmaker, Alamo Energy's Chief Executive Officer. "In addition to the benefits of working with an experienced partner, we believe this farmout arrangement creates a more attractive risk/reward profile for our UK assets. Interest in our large acreage position was considerably high, and we believe this partnership is further validation of the potential for these properties. Northdown Energy's interpretation of our models, estimates and prospects of our acreage confirmed our enthusiasm in the four blocks. According to an independent geological report, the total hydrocarbon resource potential for the blocks is estimated to be as much as 236 million barrels."
Alamo's four UK onshore license blocks (TQ26, TQ36, TQ46 and TQ56) are spread over 400 square kilometers and are situated in the Weald basin. The region is home to a number of energy producing fields, including the Humbly Grove Oil Field and the Palmers Wood Oilfield, which lies directly south of the Alamo property.
"We have mapped the route for our proposed 2D seismic surveying based on reprocessing data from more than 50 kilometers of existing seismic lines that run into our exploration blocks in conjunction with data from neighboring wells, such as the Knockholt discovery," Millmaker said. "Planning is at an advanced stage and we are eagerly anticipating the commencement of the seismic surveying of our property, which we are currently targeting for the first half of next year based on the schedule of our seismic contractor."
"Partnering with Northdown was an important next step in the development of our UK properties. We are eagerly anticipating the opportunity to fully unlock the potential value of these assets for our shareholders," Millmaker concluded.