Alamo Snaps Up Oil and Gas Assets in Texas
Alamo Energy has acquired certain producing oil and gas assets located in the State of Texas. The assets consist of a 75% working interest in the Lozano lease and is located near the Bigfoot oil field, which was first discovered by Royal Dutch Shell in 1949 and has produced more than 29 million barrels of oil to date. The Lozano asset has three wells situated in Frio County's Kyote oil field, approximately 6km from Bigfoot.
Alamo also received informal options to purchase other working interests in producing oil and gas leases in Texas, ranging from 30% to 100% and which expire at various dates through to March 2010 and which we may purchase for the aggregate amount of $850,000.
Phillip Mann, Chief Financial Officer of Alamo Energy Corp. said, "We are excited to have this transaction finalized as we believe these assets will give Alamo good long term cash flow along with possibilities of low-risk expansion through horizontal or infield drilling which we believe will boost production."