ALPHA ENERGY, INC. entered into a Option Agreement with Kadence Petroleum, LLC. The Agreement is to acquire oil and gas assets in Oklahoma in the Logan 2 Project.

HOUSTON, Sept. 25, 2020 (GLOBE NEWSWIRE) -- Alpha Energy, Inc. (OTC.PK - APHE) ("Alpha") announced today a definitive Option Agreement with Kadence Petroleum, LLC to acquire oil and gas assets in Oklahoma in the Logan 2 Project.

Logan 2 Project

The Logan 2 Project is approximately 6,900 acres of developed and undeveloped proven production in the Cherokee Uplift in central Oklahoma. This prolific area includes thirty-four formerly producing wells, primarily from the Hunton Formation.  While none of these wells are currently producing, the engineering reserve report commissioned by Alpha as of December 31, 2019 has identified sixteen that could be returned to production with minimal effort.  Logs and drilling data indicate six wells with Probable behind-pipe pay that can be recompleted.  Additionally, the reserve report identifies twelve Proved or Probable undeveloped locations for new drilling in the Hunton, Viola, or Layton Formations.  As drilling progresses, additional PUD locations are likely to be found on this large acreage block.  The reserve report indicates over 340 thousand barrels oil and over 610 million cubic feet gas of net reserves.

Management Commentary

John Lepin, the Company’s Chairman and Chief Financial Officer said, "We are pleased to have been able to acquire such a high-quality project in Oklahoma’s Cherokee Platform, and at a very attractive entry price; and we are extremely excited about the commencement of the development of the Logan 2 Project. 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. As we grow and develop our Oklahoma assets, we will continue to focus on maintaining our strong balance sheet and financial flexibility. The Cherokee Platform is one of the few domestic plays that provide return-justified drilling opportunities in the current price environment. We believe that our current acreage position in Logan County has the potential to be very impactful for our shareholders."