ALAMCO REPORTS REVISION TO RESERVE REPORT
ALAMCO REPORTS REVISION TO RESERVE REPORT CLARKSBURG, W.Va., March 16 /PRNewswire/ -- Alamco, Inc.
(AMEX: AXO) reported today a significant upward revision to the company's proved gas reserves in its year end 1991 reserve study performed by an independent petroleum and geological engineering firm.
John L. Schwager, president and chief executive officer, said the latest reserve report indicates that in 1991 the company's total proved reserves increased 53 percent from 32.4 equivalent billion cubic feet ("EBCF") of gas to 49.6 EBCF. Proved developed reserves increased 35 percent from 29.1 EBCF to 39.2 EBCF. The increases resulted primarily from property acquisitions and the recognition of additional gas reserves because of the company's successful well recompletion program. In the fourth quarter of 1991, the company acquired for $4.6 million working and royalty interests in 88 gas wells and more than 26,000 gross acres in north central West Virginia. This transaction increased the company's total proved reserves by 11.6 EBCF. The acquired wells, which are producing from the lower Devonian Oriskany formation, hold acreage which the company believes contains significant undeveloped gas potential in shallower Upper Devonian and Mississippian reservoirs. The company also believes the acreage contains additional Oriskany development. In 1992, the company plans to drill up to one deep and three shallow development wells in this area. Also, the company has commenced and to date has had encouraging results from a rehabilitation program to enhance existing Oriskany production. Production has increased on a gross basis from 2.1 million cubic feet of gas per day at the time of acquisition to approximately 3.0 million cubic feet per day at present and is being sold directly to a local gas utility. The rehabilitation project is not yet complete. The project requires a negligible investment of company funds. In 1990 and 1991, the company performed 21 recompletions, 17 of which were successful. The total cost to date to Alamco of the ongoing recompletion program is approximately $750,000. The company has added 4 EBCF to its proved reserves in 1991 as a result of the recompletion program. Alamco, headquartered in Clarksburg, W.Va., is an independent producer of gas and oil in the Appalachian Basin with a major operating concentration in West Virginia gas fields. The company's stock is traded on the American Stock Exchange under the symbol AXO. -0- 3/16/92 /CONTACT: Jane Merandi of Alamco, 304-623-6671/ (AXO) CO: Alamco, Inc. ST: West Virginia IN: OIL SU:
PT-CD -- PG003 -- 8094 03/16/92 08:02 EST
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|Date:||Mar 16, 1992|
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