Perth, Apr 19, 2006 (ABN Newswire) - Alto Energy International Limited (ASX: AOI) (Alto) is pleased to announce that following its recent drilling program in the Appalachian Basin in the US, it has commenced production in the Home Run Project in Kentucky.

Highlights

- Two wells producing from multiple zones at 60,000 cubic feet per day each.

- Seven further wells in the process of being completed and connected into the Home Run gas gathering system.

Alto Managing Director Greg Channon said the commencement of production in Home Run was a milestone for the company. "We are still fine tuning the completion and gas gathering process, and believe production will increase from these wells as a result."

"The Operator, Hay Exploration, is actively working to connect the remaining wells into the existing Home Run gas gathering system, which should be completed within the next two months," Mr Channon said.

Under the Participation Agreement with Operator Hay Exploration, Alto gained access to four existing well bores to frac at the Devonian Shale level. The farmin agreement also provided for the drilling of five wells in the Home Run project, followed by an optional further five well program.

Alto is funding 100% of the four well completions and the 10 well drilling program, earning 50% revenue from the existing wells and 75% of the revenue from the drilled wells. Alto will then have a 50% Working Interest in all subsequent wells within a 20,000 acre area.

Home Run Project
Well Type : Unconventional Shale Gas
Location : Appalachian Basin, Kentucky, USA

Working Interests :
Alto Energy International Limited - 50% (After Farmin)
Hay Exploration - 50% (Drilling Operator)

Objective :
Primary Target
- Devonian Shale (Gas)
Secondary Targets
- Trenton Black River Limestone
- Corniferous Limestone
- Berea Sandstone
- Weir Sandstone