Alamo Resources & Palace Exploration Acquire GoM Acreage
The previously announced joint venture between Alamo Resources, LLC of Houston and Palace Exploration Company is pleased to announce its first significant acquisition. A purchase and sale agreement has been executed to acquire the majority interest in Main Pass Block 59 in the Gulf of Mexico. A new sole purpose entity, Alamo-Palace MP 59, LLC, will be acquiring 6/7's (approx 86%) of the interest currently held by Ridgelake Energy, Inc. in the block for a purchase price of $69.5 million.
Main Pass Block 59 is located approximately 35 miles east of Venice, Louisiana in 60-70 feet of water depth. Immediately prior to the arrival of Hurricane Ivan in mid-September 2004, the property was producing approximately 2,600 barrels of oil per day (BOPD) and 600 thousand cubic feet (Mcf) of natural gas. Like many properties in the Main Pass area, the producing facilities sustained some damage from the storm and the block had been shut-in since that time. Repairs are now essentially complete and production from the block has recently been restored.
The interests being acquired by Alamo-Palace MP 59, LLC covers varying working interests in 15 wellbores. The seller, Ridgelake Energy, will retain a working interest in the property, along with Chevron U.S.A. Inc. Chevron U.S.A. Inc. is the operator of record for the block. Alamo-Palace MP 59 LLC is planning to propose significant additional development on the block.
Alamo Resources, LLC is a Houston based energy concern focused on the acquisition and exploitation of mature North American oil and natural gas properties. Company President, A.F. (Tony) Pelletier, notes that "This project is exactly the type of property we are focused on pursuing. Although it currently has substantial production and value, we believe it has significant remaining potential, yet to be exploited. We are pleased to have the property under contract and look forward to working with both Ridgelake and ChevronTexaco to further enhance its value."
The transaction is subject to normal consents and approvals from the working interest partners and governmental agencies, including the Minerals Management Service of the U.S. Department of the Interior. Subject to these approvals, closing is currently scheduled for March 31, 2005.
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Company: Alamo Resources more info
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