Alpha Compute Update on Operating Oil and Gas Assets Due Diligence in Pennsylvania, Securing 300+ Acres Across the Marcellus and Utica Shales

Existing wells are cash-flow positive, while the planned gas development requires further spending, review and permits.

Rhea-AI Summary

Alpha Compute (ALP) updated due diligence on a $5.5 million Pennsylvania oil and gas acquisition spanning more than 300 acres.

The assets include more than 75 producing oil and shallow gas wells and an estimated 2.9 million barrels of remaining oil in place. Preliminary estimates put recoverable oil at 145,000–435,000 barrels and recoverable gas across the acreage at 50–70 billion cubic feet. The company estimates roughly $13 million–$39.1 million in gross oil revenue and approximately $40 million–$100 million in gross lifetime gas revenue if the gas is sold.

Alpha Compute instead plans to use gas for on-site power serving a data center planned for Q1 2028. It projects approximately $3.5 million in oil-field workover spending and $10 million–$12 million to complete each gas well. The estimates are illustrative and have not been reviewed by an independent petroleum engineer; reserve engineering, permitting and financing remain outstanding.

10 points · 1 major

MixediHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

2 major · 4 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major point. Forward-looking: it has not happened yet and may not happen.$5.5 million acquisition adds more than 300 acres of surface, mineral and gas rights. 67% of market cap
• Moderate pointExisting wells are cash-flow positive, based on documented financial history.
• Moderate pointEstimated remaining oil in place is 2.9 million barrels; illustrative recoverable oil is 145,000–435,000 barrels.
• Moderate pointEstimated recoverable gas across the acreage is 50–70 billion cubic feet.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Alpha Compute plans on-site gas generation for a data center planned for Q1 2028.

5 minor points

• Minor pointMore than 75 producing oil and shallow gas wells are included in the assets.
• Minor point. Forward-looking: it has not happened yet and may not happen.Illustrative gross oil revenue is roughly $13 million–$39.1 million before royalties, taxes and operating expenses.
• Minor point. Forward-looking: it has not happened yet and may not happen.Illustrative gross lifetime gas revenue from the described wells is approximately $40 million–$100 million if sold to market.
• Minor point. Forward-looking: it has not happened yet and may not happen.Estimated initial gas production could support roughly 100–200 MW of generation.
• Minor point. Forward-looking: it has not happened yet and may not happen.Estimated recoverable gas could sustain approximately 30–60 MW of continuous load for a decade.

Negative

• Major point. Forward-looking: it has not happened yet and may not happen.The oil-field workover is projected to cost approximately $3.5 million. 43% of market cap
• Major point. Forward-looking: it has not happened yet and may not happen.Gas-well completion is expected to cost approximately $10 million–$12 million per well.
• Minor pointOil and gas estimates are illustrative and have not been reviewed by an independent petroleum engineer.
• Minor point. Forward-looking: it has not happened yet and may not happen.Gas-well completion requires Pennsylvania DEP permitting; actual results also depend on financing and well performance.

News Explained

In this due-diligence update, Alpha Compute says the existing wells are active and cash-flow positive today, adding a claim of current operating cash flow alongside its estimates for future oil and gas development.

Market Context

The $5.5 million purchase price recorded for the September 22 Pennsylvania asset agreement anchors t...

Analysis

The $5.5 million purchase price recorded for the September 22 Pennsylvania asset agreement anchors this update to the same transaction; the new diligence estimates extend the record, but the company described them as illustrative and not independently reviewed by a petroleum engineer.

Key Figures

Purchase price: $5.5 million Remaining oil in place: Approximately 2.9 million barrels Estimated recoverable oil: 145,000–435,000 barrels +5 more

Purchase price

$5.5 million

Alpha Energy 02 transaction; previously announced

Remaining oil in place

Approximately 2.9 million barrels

Preliminary estimate; in-place volume, not recoverable reserves

Estimated recoverable oil

145,000–435,000 barrels

Illustrative primary-recovery range

Estimated oil revenue

$13 million–$39.1 million

Illustrative gross top-line revenue before royalties, taxes, and operating expenses

Recoverable gas across the block

50–70 Bcf

Company estimate across the Marcellus and Utica formations

Estimated gas revenue

$40 million–$100 million

Illustrative gross lifetime revenue from the existing gas wells if sold to market

Gas well completion cost

$10 million–$12 million per well

Estimated cost to bring the wells online

Planned generation capacity

200 MW

Behind-the-meter power for the planned data center

Historical Context

1 past event · Latest: Sep 22

1 event

1. Sep 22

   Asset acquisition

   24h Move

   -4.6%

   Signed binding agreements to acquire Pennsylvania oil-and-gas assets for $5.5 million.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

behind-the-meter, mmbtu, wti, simple-cycle, +1 more

5 terms

behind-the-meter technical

"200 MW of behind-the-meter power generation"

Equipment or systems located on a customer’s side of the electricity meter—such as rooftop solar panels, battery storage, electric vehicle chargers, or energy controls—that generate, store, or manage power for use on-site rather than being supplied through the utility’s grid. Investors care because behind-the-meter assets change how much power a customer buys, can create new revenue or savings streams, affect demand patterns, and shift regulatory or business models in the energy market, much like a homeowner installing their own water tank reduces municipal supply needs.

mmbtu technical

"At an illustrative realized price of $2.00 to $2.50 per MMBtu"

A MMBtu is a unit of energy equal to one million British thermal units, commonly used to measure natural gas and other fuel quantities for trading and contracts. For investors, it translates raw energy into a standardized price metric—think of it like gallons for gasoline—so changes in the MMBtu price affect producer revenues, utility costs, commodity derivatives, and the profitability of energy-related investments.

wti financial

"prevailing West Texas Intermediate prices of roughly $90 per barrel"

West Texas Intermediate (WTI) is a widely used grade of crude oil and one of the main global benchmarks for oil prices, serving as a common yardstick that buyers and sellers use to set contracts. Investors watch WTI because its price influences energy company profits, fuel and transport costs, inflation expectations and broad market sentiment—similar to how a central market price for apples would shape decisions for growers, grocery stores and consumers.

simple-cycle technical

"Consumed on site through simple-cycle generation"

A simple-cycle plant is a power-generation setup where fuel is burned to spin a turbine and make electricity in one direct step, without capturing and reusing the waste heat. Think of it like a car that throws away hot engine exhaust instead of using it to power an extra gearbox: it starts quickly and costs less to build but produces less electricity per unit of fuel and tends to be more expensive to run. Investors care because simple-cycle units offer fast, flexible capacity that can earn revenue in tight markets or for backup power, but they usually have lower long‑term margins and different regulatory and emissions profiles than more efficient designs.

basis differentials financial

"less Appalachian basis differentials"

Basis differentials are the differences in the “basis” — the gap between a local cash price and a related benchmark price (such as a futures contract or government bond) — measured across locations, grades, or contract dates. For investors, these gaps act like price tags that reveal relative value, transport or delivery costs, and short-term supply-demand imbalances; tracking them helps spot arbitrage chances, hedge risks, or judge whether a security or commodity is cheap or expensive compared with the market.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Estimates secured in due diligence provided information of 2.9 million barrels of oil reserves plus an estimated $100 million in natural gas to be utilized for Alpha Compute’s Data Center with over 200 MW of behind-the-meter power generation

Pittsburgh, PA, Sept. 29, 2026 (GLOBE NEWSWIRE) -- Alpha Compute Corp. (Nasdaq: ALP) ("Alpha Compute" or the "Company"), a vertically integrated technology pioneer in Sovereign Intelligence, Confidential Compute and GPU-as-a-service (GPUaaS), today announced an update on the Alpha Energy 02 transaction, first announced on September 22, 2026 with a total purchase price is USD $5.5 million.

Last week, Alpha Compute’s oil, gas, and minerals leadership visited the property to review additional due diligence documents, met with the sellers/managers, and toured the pad sites. Information on the operations, financials,  on-site verification of well resources, and equipment inventory were obtained and completed. 

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. Supplemented by potential unconstrained production-type curves from adjacent analog wells of two producing shallow gas wells, these reserves correspond to an estimated 200 MW of power generation capacity dedicated to Alpha Compute data center planned for Q1 2028. Beyond providing on-site, behind-the-meter power for planned data center developments, the transaction encompasses over 75 active oil wells with an estimated 2.9 million barrels of remaining oil-in-place.

Update On Assets

The acquisition delivers a stacked-resource position on more than 300 acres of surface, mineral and gas rights spanning both the Marcellus and Utica shale formations. The assets include:

• 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, enabling co-location of power generation and compute on the same parcel.

Oil in Place and Illustrative Asset Value

Historical documentation and test-well logs obtained in due diligence from an assessment estimates 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 of oil in place.

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

Based on standard primary-recovery rates of 5% to 15% for shallow Appalachian crude, estimated recoverable reserves range from 145,000 to 435,000 barrels. At current market rates, this projects to roughly $13 million to $39.1 million in gross top-line revenue, prior to royalties, taxes, and operational expenses. Backed by more than One decades of documented financial history, the current wells remain active and cash-flow positive today. A planned workover capital expenditure of approximately $3.5 million is projected to restore field output to these higher historical rates. 

Marcellus and Utica Gas Potential

One test-well is the near-term catalyst. Horizontal wells completed in the Pennsylvania Marcellus and Utica typically recover on the order of 10 to 20 billion cubic feet (Bcf) of natural gas each over their producing lives, implying combined estimated ultimate recovery of approximately 20 to 40 Bcf for the One wells, depending on lateral length, completion design and reservoir quality. Bringing both wells online is expected to cost approximately $10 million to $12 million per well.

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

Alpha Compute does not intend to simply sell this 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 from the One wells could support roughly 100 to 200 MW of generation capacity at first production, with the combined 20 to 40 Bcf of recoverable gas sufficient to sustain approximately 30 to 60 MW of continuous load for a decade. This converts a commodity exposed to Appalachian basis discounts into low-cost, dispatchable power for AI compute.

"We paid $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."

"This acquisition gives Alpha Compute something few AI infrastructure companies have: the fuel, the land and the compute on a single asset," said Brittany Kaiser, CEO of Alpha Compute Corp. "With one well already drilled. Completing them is the fastest path in Pennsylvania to behind-the-meter power for our next data center, and we will do it under Pennsylvania DEP oversight, in partnership with the county and with the local community at the forefront of our plans."

Next Steps

• Complete updated geological assessments, modern appraisals and independent reserve engineering to map recoverable oil and gas volumes;
• Advance DEP permitting and contracting for the hydraulic fracturing and completion of the One gas wells;
• Finalize the design of on-site generation and the planned data center, replicating the community-first framework developed for Alpha Compute’s Northern Pennsylvania site; and
• Enter binding covenants with local and county governments aligned with municipal development goals.

Facility Design and Environmental Compliance

Development will comply fully with local county ordinances and land-use regulations, regional grid policies and interconnection standards, and Pennsylvania Department of Environmental Protection (DEP) regulations, including applicable operator registration, bonding and well-plugging requirements.

Community Partnership and Economic Impact

• Job Creation: Projected creation of skilled permanent and construction positions;
• Infrastructure Investment: Modernization of site utilities and sustainable integration with local energy grid capacity;
• Environmental Stewardship: Post-closing environmental compliance, plugging assurances and responsible well management under DEP oversight.

Summary of Illustrative Estimates

Metric	Basis	Illustrative Estimate
Original oil in place (historical Halliburton assessment)	~10,000 bbl/acre × ~300 acres	~3.0 million barrels
Oil extracted to date (preliminary)	~4% of estimated in-place volume	~120,000 barrels
Remaining oil in place	In-place, not recovered volume	~2.9 million barrels
Illustrative gross value of remaining oil in place	WTI ~$90/bbl (late Sept. 2026); Penn Grade crude priced near WTI	~$260 million (undiscounted, in-place)
Illustrative recoverable oil (primary recovery)	5-15% of remaining in-place volume	~145,000–435,000 barrels (~$13M–$39.1M gross at ~$90/bbl)
One test-drilled, uncompleted gas wells – estimated ultimate recovery	Typical PA Marcellus/Utica horizontal well: ~10–20 Bcf each	~20–40 Bcf combined
Illustrative gross gas revenue, One wells (life of well)	Realized ~$2.00–$2.50/MMBtu (Henry Hub ~$3.00 less Appalachian basis)	~$40M–$100M (undiscounted)
Estimated completion cost to bring the one well online	Industry range for Appalachian horizontal completions	~$10M–$12M per well
Behind-the-meter generation potential, One test well	Initial ~20–40 MMcf/d combined; ~7.5 MMBtu per MWh simple-cycle	~100–200 MW initially; ~30–60 MW sustained over 10 years Plus access to major gas lines on property.
Recoverable gas across the ~300-acre block (both formations)	~0.08–0.12 Bcf/acre per formation, Marcellus + Utica	~50–70 Bcf

All figures above are illustrative, order-of-magnitude estimates prepared by the Company from historical third-party documentation, publicly available basin-level type curves and prevailing commodity prices as of late September 2026. They are not estimates of proved, probable or possible reserves as defined by the U.S. Securities and Exchange Commission, have not been prepared or reviewed by an independent petroleum engineer, are undiscounted, and are stated before royalties, operating costs, capital costs and taxes. Actual results will depend on completed reserve engineering, well performance, commodity prices, permitting and financing. See "Forward-Looking Statements."

About Alpha Compute Corp.

Alpha Compute Corp. (Nasdaq: ALP) is a vertically integrated AI infrastructure company specializing in GPU-as-a-service and AI Confidential Compute. Alpha Compute’s mission is to support clients, subsidiaries, and partners across critical sectors including: finance, defense, intelligence, and media with the essential framework for any organization requiring secure, confidential computing environments. 

Alpha Compute Corp is domiciled in the British Virgin Islands with offices in New York, Los Angeles, Miami, Amsterdam and Toronto. Alpha Compute is a founding partner of the Right2Compute Coalition.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of applicable securities laws. All statements other than statements of historical fact, including those preceded by, followed by, or incorporating words such as "believes," "expects," "anticipates," "intends," "estimates," "plans," "may," "will," "potential," "continues," or similar expressions are forward-looking statements.

Forward-looking statements in this release include, without limitation: estimates of oil and gas in place, recoverable volumes, estimated ultimate recovery, completion costs, commodity prices, realized prices, gross revenue and generation capacity; the anticipated revaluation of the acquired assets; the completion and performance of the one drilled gas wells; title, acreage and net revenue interest; the development, permitting, financing, construction and commercial operation of on-site generation and the planned data center; and potential economic, environmental and community impacts.

These statements involve known and unknown risks and uncertainties that may cause actual results to differ materially from those expressed or implied, including: the results of updated geological assessments, appraisals and independent reserve engineering; well performance and recovery factors; volatility in oil and natural gas prices and Appalachian basis differentials; permitting, environmental and well-plugging risks; the timing and progress of the Company's strategic initiatives; reliance on third-party vendors and partners; the ability to secure additional financing; uncertainty around the Company's investments and legacy business; risks related to technology platforms and ecosystems; and general market and economic conditions. A more complete discussion of these risks is set forth under "Item 3 - Key Information - Risk Factors" in the Company's Annual Report on Form 20-F for the year ended March 31, 2026, as amended.

Undue reliance should not be placed on these forward-looking statements. The forward-looking statements contained herein are made as of the date of this press release, and the Company undertakes no obligation to update or revise them publicly, except as required by law.

Investor & Media Contact

Alpha Compute Corp.
ir@alphacompute.ai
www.alphacompute.ai

ir(at)alphacompute.ai

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How much oil does Alpha Compute estimate is in the Pennsylvania acquisition?

Alpha Compute estimates approximately 2.9 million barrels of remaining oil in place, with an illustrative 145,000–435,000 barrels recoverable through primary recovery. Oil in place is not the same as oil expected to be recovered.

How much power could Alpha Compute's Pennsylvania gas assets generate?

Alpha Compute estimates that initial gas production from the described wells could support roughly 100–200 MW of generation. Its estimate of recoverable gas from those wells could sustain approximately 30–60 MW of continuous load for a decade. These estimates depend on well performance and further development.