Alpha’s business model is focused on acquisition of existing production, utilizing enhanced recovery methods with new technology and development drilling to increase production and add value to the properties we acquire.
The Cherokee Platform region of Rogers County located in Northeastern Oklahoma is more shallow than the formation in Central Oklahoma. Alpha’s shallow well prospect in Rogers County consist sof approximately 3,429 acres of proven developed and undeveloped oil and gas leases. The leases contain 126 developed oil and gas wells, 4 salt water injection wells, and well production equipment. Included is 20.5 miles of 4″ gas gathering lines, 4 miles of 2″ saltwater gathering lines. The project area also includes 150 in-field, offset proven undeveloped (PUD) locations that will be part of our new well drilling program.
Assets under agreement on 3429 acres in Rogers County, Oklahoma include 126 wells that have been completed primarily in the Mississippi at depths of from 900 to 1200 feet. These wells are currently not producing but can be brought back online with minor workovers we anticipate will cost about $3,000 per well on average. Yield will be approximately 3 bopd and 3 mcfgpd per well. A short pipeline expansion will allow access to multiple markets, and a nearby solar farm power plant provides consistent demand for natural gas to supplement the solar array.
Up to 150 fresh drill locations are to be drilled down to the Arbuckle at up to 3500 feet. Potential pay zones in addition to the Arbuckle and the Mississipi Sands and Lime include the Burgess Sand at 800 feet and the Bartlesville at 600 feet. Fifteen of these new drill locations will be drilled using funds from the initial cash raise, with the remainder being drilled out of cashflow as economic conditions permit. We anticipate initial rates of 10 bopd and 20 mcfgpd per well.
With success in this shallow, low-risk area, Alpha will be positioned to expand into additional attractive acreage positions as they become available.
Our future also includes expansion into other regions of Oklahoma and New Mexico and the Panhandle of Texas. We will place a great deal of emphasis on oil and natural gas production, as well as the transportation of natural gas. We believe natural gas will continue to fuel the future due to the clean-air standards regulations and we will continue to include natural gas projects within our target operations.