APHE Alpha Energy Inc (PK)

 

On February 17, 2022, Alpha Energy, Inc. (the “Company”) entered into a Purchase and Sale Agreement (“PSA”) with Progressive Well Service, LLC. (“Progressive”). Under the terms of the PSA, the Company will acquire leases and related assets to certain oil and gas wells located in Logan County in Central Oklahoma as more fully descried in the PSA. As previously reported in the Company’s Current Report on Form 8-K filed July 20, 2020, the Company had entered into an Option Agreement to acquire certain oil and gas properties from Progressive on or prior to December 31, 2020, as extended from time to time. Under the PSA the Company is obligated to make an additional cash payment of four hundred and ninety thousand dollars ($490,000.00) after giving effect to one hundred and ten thousand dollars previously paid for the Option and Extension Payments, and a further payment of three (3%) percent of the net revenue from new wells drilled until Progressive receives three hundred and fifty thousand dollars ($350,000.00).

 

The acquired leases under the PSA comprise approximately 2,080 gross acres of developed and undeveloped proven production in the Cherokee Uplift in central Oklahoma, including 34 well bores, six of which are active.

 

The closing of the PSA is subject to certain closing conditions and is anticipated to occur on or before February 28, 2022.

 

The foregoing description of the PSA and the transactions contemplated thereby, does not purport to be complete and is qualified in its entirety by reference to the full text of the PSA by and among the Company and Progressive, a copy of which is filed as Exhibit 10.1 to this Current Report on Form 8-K and is incorporated herein by reference.