On Wednesday August 24,2011, ALAMO ENERGY CORP (OTC:ALME), a company concerned with the development and production of onshore oil and gas reserves in the United Kingdom and United States, having its headquarter in London, England, gladly announced its potential growth representing a 38% increase in production revenue from its KYTX acreage, consequent to the inception of its KYTX development program.
The KYTX group of companies comprising of KYTX Oil & Gas, KYTX Pipeline, and KYTX Drilling Company, located in Knox County, Kentucky in the Appalachian basin, are the wholly owned subsidiaries of Alamo Energy Corp.
The KYTX development program is concerned with the completion of 25 previously drilled incomplete wells, along with accomplishing a drilling program comprising of the creation of up to 256 new wells on current KYTX acreage. It intends to accommodate its new production by the existing extensive pipeline infrastructure, having the capacity of handling increased production up to 9,000,000 cubic feet per day.
With the support extended by the Alamo’s subsidiary KYTX Drilling, the initial 5 wells were completed, yielding total flow test results of 349,000 cubic feet per day, the remaining 20 wells are under construction, with the operations scheduled to be commenced on 29th August.
After completion, the wells will be flow-tested with the help of digital wellhead meters before being put on production. Giving due consideration to the initial flow test results, the company is convinced that with the completion of 25 wells, it has the potential to bring about production exceeding 2,000,000 cubic feet of natural gas per day, which, if achieved, would affect a190% increase in the current production revenue.
Allan Millmaker, Chief Executive Officer, proudly exclaimed that their achieved revenue growth of 38% exceeded their own predicted revenue growth forecasts of 35%, thus the company further aims to complete the remaining wells at the earliest with the financial support extended from their recent financing along with their existing funding facility.
Shares of ALME is trading higher by 1% at $0.66 on over 39K shares.
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