UK based Alamo Energy, as part of its agreement with Allied Energy, has chosen to replace the Dillon #1 well with the Goose Creek #4 re-entry well at Ritchie County in West Virginia.

As per the option agreement with Allied Energy, Alamo has the option to participate in the re-entry of additional wells across 1,520.4 acres in West Virginia with the acreage containing 12 re-completion and four drilldown wells with the opportunity to drill new wells on 25-acre spacing.

Operations on the Goose Creek #4 well, which is located on approximately 493 acres, are expected to begin shortly once there is a change in the unseasonal weather.

The re-entry recompletion program plans to include several candidate shallower zones that have been analyzed by the company as potentially oil productive.

Based on the analysis of the data, the company believes that the cumulative production from the recompleted well may be as high as 20,000 barrels of oil.