Alamo Enters Drilling Program in Tn.
Alamo has entered into a 2-well drilling program located on a 300 acres lease in Fentress County, Tennessee.
The drilling program is targeting the Murfreesboro, Stones River and Knox formations, which are known to be able to produce between 100,000 to 300,000 total accumulated barrels of production per individual formation.
Drilling of the first well has been completed with the well demonstrating a natural fill up from the Murfreesboro Formation. The well has encountered 110 feet of pay and has the potential to be deepened to access additional payzones.
Allan Millmaker, Chief Executive Officer of Alamo, commented, "We are delighted that the first well has already been drilled and has encountered hydrocarbons. The acreage also allows for addition wells after this first drilling program."
To finance the program, we borrowed additional funds from the $2,000,000 financing agreement that we entered into in November 2009. As of today, we have received approximately $1,484,000 of the total commitment. We have allocated a significant portion of the funds towards the development of our projects which has yielded 7 new wells all encountering hydrocarbons.