SOURCE: Schneider Amalco Inc.


March 12, 2014 10:30 ET

Amalco and Palo Petroleum Sign Cooperative Agreement to Develop Upstream Assets in New Mexico and Texas

NEW YORK, NY--(Marketwired - March 12, 2014) - Schneider Amalco Inc. ("Amalco") and Dallas Texas based Palo Petroleum Inc. ("Palo") today announced the signing of a memorandum of understanding to jointly develop upstream oil assets in the states of Texas and New Mexico.

The memorandum sets out an aggressive acquisition and development plan, with the target of developing a regional 2 million boe oil reserve portfolio through 2015. Subject to local authority clearances, the group will endeavour to develop, drill and operate assets across the two states starting with Amalco's existing operating subsidiary Amalco New Mexico Oil LLC. The partners anticipate jointly managing operations via a joint-operating agreement, creating a sizeable regional E&P player. The operating entities will remain subsidiaries of Amalco, with Palo anticipated to receive a 25% ownership interest.

Amalco is one of North America's newest oil and gas companies. The Company, backed by the Schneider family with a 120 year history in energy, intends to develop, own and operate upstream assets, and be a leading marketer of petroleum and energy products. Palo Petroleum, headed by James P. Graham is an experienced American E&P based in Dallas, Texas with a forty year history in oil and gas exploration and development. The Graham Family has been in the oil and gas business since 1930.

Thomas Schneider, Chief Executive Officer of Amalco, commented, "We are delighted to have agreed to this strategic partnership with Palo Petroleum, and together we will create a regional leader in the E&P space in the United States. Amalco and Palo bring complementary skills and assets to the new venture and I have great confidence in its future success."

Jim Graham, President and Founder of Palo Petroleum, commented, "Both Palo and the Schneider family have an excellent track record of operating successful energy businesses in other parts of the world, so I am excited about working closely with Amalco on developing new and exciting reserve prospects across Texas and New Mexico."

Upon completion of the deal being announced today, the Schneider family will remain the majority shareholder of Amalco and its subsidiaries, with Palo Petroleum owning a significant minority stake. The Company will maintain offices in New York, NY, Las Vegas, NV and Dallas, TX.

About Schneider Amalco

Schneider Amalco, one of North America's newest oil and gas companies. The Company intends to develop, own and operate upstream assets, and be a leading marketer of petroleum and energy products. For more information please visit

About Palo Petroleum

Palo Petroleum, Inc. ("Palo") was founded in 1976 and is the company responsible for discovering the legendary Blind Hog Field in Eastland County, Texas. Palo is a family-owned, independent oil and gas operator and has managed large projects for companies such as Amoco, Arco, Texaco and Boeing. Palo has participated in over 500 wells and has discovered oil and gas reserves valued in the hundreds of millions of dollars. This includes the Picnic Flats Project and Bondad Project in the San Juan Basin of southern Colorado, with proven developed and undeveloped reserves exceeding 100 BCF of gas, and sold to Amoco Production Company and ConocoPhillips, respectively. The Company also currently maintains a position in Missouri, with an anticipated 45.2 million barrels of oil underlying Palo's Bushwhacker-CHOP acreage.

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