Tuesday, June 28, 2011
Alamo Energy Corp.
Alamo announced the acquisition of approximately 2,500 acres in Knox County, Kentucky.
The acquisition falls inline with Alamo's strategy of becoming a significant player in the Appalachian basin. The new acreage is located contiguous to existing acreage and infrastructure allowing for new wells to be tied into Alamo's 23-mile pipeline that has a capacity of up to 9,000,000 cubic feet per day.
Utilizing Alamo's in-house drilling company, we believe that the new acreage will allow for an additional 125 wells targeting the Devonian Shale and Big Lime formations based on 20-acre spacing.
Allan Millmaker, Chief Executive Officer, commented, "While our strategy is to expand aggressively in the Appalachian basin, we are always looking to maximize returns. The new acreage will allow us to take advantage of potential cost savings not only at the drilling and completion stage but also when on production because of the proximity to existing Alamo infrastructure."
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