Pursuant to the agreement and subject to approval by the UK Department of Energy and Climate Change (DECC), the company will own a 90% working interest on the license, which according to an independent geological report will estimate Alamo’s potential median stake to be approximately 236 million stock tank barrels of oil initially in place (STOIIP).
Alamo Energy has also submitted an application to become the exploration operator for the license. Under the terms of the license, the joint partners will have to undertake 60km of 2D seismic survey on the lease.
Allan Millmaker, CEO of Alamo Energy, said: “This agreement fits Alamo’s business model and provides us with an exploration opportunity in the Weald Wessex province directly north of the Palmers Wood Oilfield. We believe a prospect of this size and potential is normally associated with offshore fields.”
Alamo Energy is an oil and gas, exploration, development and production company with headquarters in London.
