Alpha Compute Corp. (Nasdaq: ALP), which describes itself as a vertically integrated technology pioneer in Sovereign Intelligence, Confidential Compute, and GPU-as-a-service, issued an update on Sept. 29, 2026, on its Alpha Energy 02 transaction, a Pennsylvania oil and gas acquisition first announced on Sept. 22, 2026, with a total purchase price of USD 5.5 million. The Pittsburgh-based company said the deal is intended in part to supply on-site, behind-the-meter power for planned data center developments.

Site Visit and Due Diligence

According to the company, its oil, gas and minerals leadership visited the property last week to review additional due diligence documents, meet with the sellers and managers, and tour the pad sites. Alpha Compute said information on operations, financials, on-site verification of well resources, and equipment inventory was obtained and completed.

The company said its evaluation of log files from one natural gas test well into the Marcellus shale indicates substantial recoverable gas resources across multiple formations linked to the acquired land and mineral rights.

That evaluation was supplemented by potential unconstrained production-type curves from adjacent analog wells of two producing shallow gas wells. Alpha Compute said the reserves correspond to an estimated 200 MW of power generation capacity dedicated to an Alpha Compute data center planned for the first quarter of 2028.

What the Acquisition Includes

The transaction delivers what the company calls a stacked-resource position on more than 300 acres of surface, mineral, and gas rights spanning both the Marcellus and Utica shale formations.

Alpha Compute listed the assets as one natural gas test well with proven natural gas reserves; more than 75 existing, producing oil and shallow gas wells with complete pump jack inventories; operational maintenance facilities, heavy equipment and associated gathering infrastructure; and full surface control, which the company said enables co-location of power generation and compute on the same parcel.

The company said the transaction encompasses over 75 active oil wells with an estimated 2.9 million barrels of remaining oil in place.

Oil in Place and Illustrative Value

Alpha Compute said historical documentation and test-well logs obtained during due diligence estimate approximately 10,000 barrels per acre of light Pennsylvania-grade sweet crude oil across the subsurface parcels, implying roughly 3.0 million barrels of original oil in place across the acquired acreage. Preliminary evaluations indicate that only an estimated 4% of that volume has been extracted to date, leaving approximately 2.9 million barrels in place.

For context, the company said that at prevailing West Texas Intermediate prices of roughly USD 90 per barrel in late September 2026, the remaining in-place volume carries an illustrative gross, undiscounted value on the order of USD 260 million.

Based on standard primary-recovery rates of 5% to 15% for shallow Appalachian crude, Alpha Compute estimated recoverable reserves at 145,000 to 435,000 barrels. At current market rates, the company said, that projects to roughly USD 13 million to USD 39.1 million in gross top-line revenue, before royalties, taxes and operational expenses.

The company said the current wells have more than a decade of documented financial history, remain active and are cash-flow positive today. It projected a planned workover capital expenditure of approximately USD 3.5 million to restore field output to higher historical rates.

Marcellus and Utica Gas Potential

Alpha Compute described its test well as the near-term catalyst. The company said horizontal wells completed in the Pennsylvania Marcellus and Utica typically recover on the order of 10 to 20 billion cubic feet of natural gas each over their producing lives, implying a combined estimated ultimate recovery of approximately 20 to 40 Bcf, depending on lateral length, completion design and reservoir quality. The release refers to the number of wells as "One," and states that bringing both wells online is expected to cost approximately USD 10 million to USD 12 million per well.

Using an illustrative realized price of USD 2.00 to USD 2.50 per MMBtu, which the company said reflects Henry Hub pricing of roughly USD 3.00 less Appalachian basis differentials, Alpha Compute said the wells alone represent approximately USD 40 million to USD 100 million of gross lifetime gas revenue if sold to market. Across the full 300-acre block, the company estimated the stacked Marcellus and Utica formations hold roughly 50 to 70 Bcf of recoverable gas, supporting additional drilling locations beyond the existing wells.

The company said it does not intend simply to sell the gas. Consumed on site through simple-cycle generation at approximately 7.5 MMBtu per megawatt-hour, initial combined production of 20 to 40 million cubic feet per day could support roughly 100 to 200 MW of generation capacity at first production, according to Alpha Compute. It added that the combined 20 to 40 Bcf of recoverable gas would be sufficient to sustain approximately 30 to 60 MW of continuous load for a decade. The company said this converts a commodity exposed to Appalachian basis discounts into low-cost, dispatchable power for AI compute.

Executive Comments

"We paid USD 5.5 million for an operating business that produces oil and cash flow today, and that sits on roughly 2.9 million barrels of oil in place and one gas well ready to complete," said Enzo Villani, Executive Chairman and President of Alpha Compute Corp. "Our updated geological work, modern appraisals and third-party reserve engineering are underway, and we expect them to support a substantial revaluation of these assets on our balance sheet. In the meantime, the site pays for itself."

Brittany Kaiser,

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