LONDON, July 21, 2011 (GLOBE NEWSWIRE) -- Alamo Energy Corp. (OTCBB:ALME) is pleased to provide an update to its well completion program from its KYTX Kentucky wells.
In line with development plans to increase revenue, Alamo has commenced completion of 25 new wells utilizing the company's in-house workover capability and specialist service companies.
With production from existing wells on the acreage averaging 300,000 cubic feet of natural gas per day the target was to double production from the 25 well program.
The first part of the program involved an initial 9 completions in 5 wellbores targeting the Devonian Shale and Big Lime formations. Following successful completions on the wells, 3 of the 5 wells have been flow tested with results considerably exceeding our expectations with results as follows:
Brown #1: 82,000 cubic feet per day; 105psi Shut-in casing pressure.
University of the Cumberlands #6: 135,000 cubic feet per day; 140psi Shut-in casing pressure.
University of the Cumberlands #7: 132,000 cubic feet per day; 172psi Shut-in casing pressure.
Total results: 349,000 cubic feet per day.
The 3 wells were shut in for 24 hours, shut-in pressure was recorded and the wells were opened to maximum flow for 12 hours through the digital wellhead meter. These 3 wells are now connected and producing into the KYTX pipeline system with the remaining 2 wells in the process of being cleaned up from the stimulation materials prior to being flow tested and put on production.
With these results, we believe the total production once all 25 wells are completed could exceed 2,000,000 cubic feet of natural gas per day.
As part of Alamo's growth strategy, the company has recently acquired 2,500 new acres located contiguous to the existing 4,040 acres and infrastructure, we believe the land-to-resource ratio enables 20-acre spacing, which will allow for up to 256 new wells. The pipeline infrastructure in place is able to accommodate increased production up to 9,000,000 cubic feet per day.
Allan Millmaker, Chief Executive Officer, commented: "We are extremely pleased with the production results from the first three wells and have begun planning the next phase in our program to complete further wells with large scale stimulation treatments to increase cash-flow from our assets in Kentucky."
About KYTX Group of Companies.
The KYTX group of companies are wholly owned subsidiaries of Alamo Energy Corp and are located in Knox County, Kentucky in the Appalachian basin. The companies are KYTX Oil & Gas, KYTX Pipeline, and KYTX Drilling Company. Together, they contain 71 wells located on 6,540 acres, a 23-mile strategic pipeline network capable of handling up to 9,000,000 cubic feet of gas per day connected into the Delta system and one drilling rig, one service rig and associated well-servicing equipment.
About Alamo Energy Corp.
Headquartered in London, England and with operational offices in Knox County, Kentucky and Houston, Texas, Alamo Energy Corp. (OTCBB:ALME) is an independent company focused on the exploration, development and production of onshore oil and gas reserves in the United Kingdom and United States. The company's UK exploration program is focused on four blocks spread over 400 square kilometers in an onshore oil and gas province in South East England. Alamo's U.S. operations are focused on the development of assets in Texas, Kentucky, Tennessee and West Virginia. For more information visit www.alamoenergycorp.com/">www.alamoenergycorp.com
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Forward-looking Statements:
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