Alamo, WEJCO Join Forces for Tx. Well Re-Entry

Alamo has entered into a well re-entry program with WEJCO on its Hubbard 1-H well, Jack D Hubbard Lease Development in Brown County, Texas.

The Hubbard 1-H well, which is located on 453 acres, has full Schlumberger Triple Combo data showing logged pay with strong mud log shows and was originally drilled targeting the Caddo, Duffer and deeper Barnett formations. The initial flow rate from the well was over 1,000mcfg/d and 16 bblso/d.

While undergoing completion, the well suffered mechanical issues resulting in the well being cemented in at the Duffer zone. The well is currently producing from the Caddo formation into a low-pressure pipeline gathering system on the lease.

The target of the re-entry program is to complete the Duffer formation which we anticipate to produce initial flow rates after perforations and fracing of 500 mcfg/d and 8bblso/d. Upon successful completion, we believe there is also the opportunity to further develop the acreage by drilling new wells including targeting the Barnett formation.

Philip Mann, Alamo's Chief Financial Officer said, "We believe this is another low-risk project with good potential in addition to opening high quality new acreage. Several Duffer wells in the area have shown potential for greater than 1,000 mcfg/d whilst we believe another re-entry in the area has produced more than 800,000 mcf gas and nearly 30,000 bbls oil. We look forward to moving ahead with the project and updating our shareholders as we progress with the re-entry program."