Note 7 - Oil and Gas Property

3 Months Ended

Mar. 31, 2019

Notes to Financial Statements

Oil and Gas Properties [Text Block]

NOTE

7

– OIL AND GAS PROPERTIES

The Company entered into a Letter of Intent with Chicorica, LLC on

December 13, 2018

and extended the agreement effective

April 1, 2019.

Chicorica has developed an oil and gas exploration project in northeastern New Mexico (the“Frostback Project”) that includes several prospective areas and Alpha is interested in exploring in these areas and utilizing Chicorica’s seismic and other data and expertise. The agreement is for

$85,000

with

$10,000

paid on signing the LOI and

$75,000

due by

May 2, 2019.

If the final payment is

not

made by

May 2, 2019,

the Company can extend the agreement through

June 17, 2019

for an additional extension fee of

$10,000.

As of

May 20, 2019,

the Company has

not

made the extension payment.

On

March 13

th

,

2019,

Alpha Energy, Inc. (the “Company”) entered into a Purchase and Sale Agreement (the “Agreement”) with Premier Gas Company, LLC. (“Premier”) to acquire oil and gas assets in Oklahoma in consideration of a Purchase Price of One Million Six Hundred Thousand Dollars (

$1,600,000

) (the “Purchase Price”) that includes a non-refundable deposit in the amount of Fifty Thousand Dollars (

$50,000

) (the “Deposit) through the Escrow Agent. The Deposit shall be credited against the cash portion of the Purchase Price at Closing. Although the dates on the Purchase and Sale agreements were dated

January 29

th

,

2019,

the contracts were

not

ultimately delivered to the company until

March 13

th

,

2019

and the deposit was advanced to the Escrow Agent.