HOUSTON, March 15, 2022 (GLOBE NEWSWIRE) — Alpha Energy, Inc. (OTC.PK – APHE) announced today it has closed on a Purchase and Sale Agreement with Progressive Well Service, LLC to acquire 31 oil and gas assets in Oklahoma in the Coral Project.
Coral Project
On March 9, 2022, Alpha closed on associated assets under a definitive Purchase and Sale Agreement (“PSA”) with Progressive to acquire the Coral Project. Under the terms of the PSA, Alpha made a cash payment of six hundred thousand dollars ($600,000.00) less Option and Extension Payments previously tendered to Progressive, further adjusted for product sold and vendor invoices paid after the Effective Date. The PSA guarantees to Progressive a further payment of 3% of the net revenue stream from any new wells drilled in the Coral Project (the “Production Payment”) until Progressive has received an additional three hundred and fifty thousand dollars ($350,000.00). The transaction has an Effective Date of January 1, 2022 and a defined transition period as Alpha takes over operations. Alpha is a bonded Operator in the State of Oklahoma and the required forms for Change of Operator will be filed with the Oklahoma Corporation Commission. Alpha has purchased an insurance policy for the wells and well operations.
The Coral Project is comprised of certain held-by-production leases with both developed and undeveloped proven production on the Cherokee Uplift in Central Oklahoma. The acquisition includes 31 well bores, five of which are active. The company intends to bring as many of the inactive well bores into production as it can as soon as rig, equipment, and personnel availability permit.
The Company notes that the Project is west of the lands in eastern Oklahoma affected by a decision of the U.S. Supreme Court issued on July 9, 2020, McGirt v. Oklahoma, and therefore unaffected by this decision.
Management Commentary
Jay Leaver, President, said, “The acquisition of the Coral Project is a key step in Alpha’s strategy to grow the company using assets that are shallow, have good infrastructure and multiple potential target zones that can be acquired for a competitive price. It establishes Alpha as a functional Oil & Gas Operator with cash-flowing assets that have significant room for upside. An external independent engineering report on the property indicates significant potential for many of the inactive wells, either through repair and maintenance of existing equipment, stimulation of existing productive zones, or recompletion in pay zones identified on geophysical logs but not yet perforated. Additionally, the are undrilled potential locations on leases conveyed in the transaction. We at Alpha are looking forward to using this transaction as a springboard into an exciting and profitable future.”
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.alpha-energy.us.
