Alpha Energy Signs Option Agreement to Acquire Oklahoma Assets
Houston-based Alpha Energy Inc. has executed an option agreement with privately-held oil & gas company Kadence Petroleum LLC to acquire certain assets in the Logan 2 Project located in Oklahoma. The financial terms of the deal have not been disclsed.
The Logan 2 Project covers an area of approximately 6,900 acres of developed and undeveloped proven leases in the Cherokee platform region of Central Oklahoma. The project includes 34 formerly producing wells targeting the Hunton formation, 16 of which could be returned to production with minimal effort. Alpha Energy has identified 12 proved or probable undeveloped locations for new drilling in the Hunton, Viola, and Layton formations. The project has net reserves of approximately 442 thousand barrels of oil equivalent (Mboe) as of year-end 2019, of which approximately 77% is oil.
“Our initial focus will be on the acquisition of producing well bores which gives us some financial flexibility and allows us to grow production, cash flow and reserves through a capital program that is expected to be funded with internally generated cash flow,” said John Lepin, Alpha’s Chairman & CFO.
OTCMKTS-listed Alpha Energy is focused on the exploration, development and production operations in Texas, New Mexico, and Oklahoma. Austin-based Kadence Petroleum is engaged in exploration and production operations primarily in Oklahoma.