Alamo Energy Collects First Revenue from Oil Production
Alamo Energy has started to receive revenue cheques generated by the sale of oil produced from the Lozano Lease, Frio County, Texas.
With recent workovers on the wells, we believe the asset will continue to produce cashflow with little decline in production for the coming years. In addition, the lease also provides a quarterly cashflow guarantee until October 2010.
"I'm delighted that the Lozano asset has commenced cashflow. It puts Alamo in a position where we believe we will have sufficient cashflow to fund our day to day operations without outside financing. From this position, we intend to move forward with our plan to increase production revenues on a quarter to quarter basis."