HOUSTON, Feb. 25, 2019 (GLOBE NEWSWIRE) -- Alpha Energy, Inc. (OTC.PK - APHE) ("Alpha") announced today a definitive Purchase and Sale Agreement with Visionary Resources, LLC, to acquire oil and gas assets in the Texas Panhandle in the Battlewagon Project.
Battlewagon Project
The Battlewagon Project is a conventional exploration prospect in Texas targeting remote-sensing anomalies in the vicinity of the Paint Ridge Field in the Granite Wash seismically-defined structure. In addition to the main prospect there are two other prospects. Alpha will begin leasing activities and gain a position on some or all of the prospects. 2D seismic is available on some of the prospects; data will need to be acquired on others. After obtaining leasing and scientific information, we will select the top prospect for drilling. Drill depths are anticipated to be 9,000 feet; horizontal technology is not required and reservoir stimulation may be minimal. The analog is the prolific Paint Ridge Field nearby, where several wells reported initial production rates from between 1,000 and 2,000 barrels of oil per day from vertical wells in the Granite Wash Formation.
We currently estimate that we will begin drilling upon completion of additional geophysics and a geological report by contract geologist. The three prospect areas of the Battlewagon Project total 4,200 acres with a potential recovery of 15 to 20 million barrels of oil.
We currently forecast a total capital budget for 2019 of approximately $4,750,000, including drill and complete first well for $3,500,000. To the extent that well performance exceeds our expectations, or commodity prices increase significantly, however, we possess the financial flexibility to expand our program during the year.
Management Commentary
John Lepin, the Company’s Chairman and Chief Financial Officer said, " We were truly fortunate to have been able to acquire such a high-quality project in the Texas Panhandle this year, and at a very attractive entry price; and we are extremely excited about the commencement of the development of the Battlewagon Project. While our initial focus will be on the acquisition of producing well bores, with ‘stacked’ behind pipe zones in the Cherokee Platform in central Oklahoma, we believe that the Battlewagon Project provides significant long-term reserve growth. The Cherokee Platform is one of the few domestic plays that provide return-justified drilling opportunities in the current price environment. We believe that our current acreage position in Logan County has the potential to be very impactful for our shareholders."
Alpha Energy, Inc. is a Houston, Texas based, independent energy company engaged in the acquisition, exploration, development and production of crude oil and natural gas. Additional information is available on the Company's website at www.alphaenergyinc.us.
