Alamo Energy Corp. reports that following the acquisition of a 23-mile pipeline, Alamo believes it is well positioned to supply the mainstream gas market.
Alamo's strategic pipeline ties its 71 wells into the Delta pipeline system. Built with an original capacity of 9,000,000 cubic feet per day with the additional possibility of expansion, Alamo's management believes the pipeline provides Alamo with an important strategic asset for the area and allows for the possibility of revenue generation through transportation of gas from other producers.
The pipeline is structured to allow for easy tie-ins of new wells on Alamo's acreage which we believe allows for 131 additional wells on 20-acre spacing.
Allan Millmaker, Chief Executive Officer, commented: "The pipeline infrastructure and design allows for new wells on our acreage to be online quickly at relatively little cost. We also have the additional opportunity of creating a revenue stream from transporting gas for others through our pipeline."