The new acreage is located contiguous to existing acreage and infrastructure allowing for new wells to be tied into the company’s 23-mile pipeline that has a capacity of up to nine million cubic feet per day.
According to the company, the new acreage will allow for an additional 125 wells targeting the Devonian Shale and Big Lime formations based on 20-acre spacing.
Alamo CEO Allan Millmaker said the new acreage will allow the company 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.
The company said that the acquisition falls inline with its strategy of becoming a significant player in the Appalachian basin.
Alamo is focused on the exploration, development and production of onshore oil and gas reserves in the UK and the US.
