BOWLING GREEN, KY -- (Marketwire) -- 06/22/10 -- Allied Energy, Inc. (PINKSHEETS: AGGI) announced today that the Company, through its wholly owned subsidiary, Allied Operating Oklahoma, LLC, provided the following field update for its Cox lease in Rogers County, Oklahoma.
The Company is tentatively scheduled to move a rig on location in the next week or two to begin drilling the Micheyla #3 and #4 wells located on its Cox lease in Rogers County, Oklahoma.
The Micheyla #1 and #2 wells were put in production in the latter part of May and are currently producing an estimated and combined 20 - 25 BO per day.
'Our plans are to drill the Micheyla #4 first and then reconfirm the #3 location,' said Steve Stengell, Allied's President. 'Since May 27th, the Micheyla #1 and #2 have produced and shipped an estimated 543 barrels of crude oil', added Stengell.
Allied has also contracted an independent third party petroleum geology firm to assist them in making future drilling plans in the area.
On May 15, 2010, Allied tested the Howard #1H Well located in Grimes County, Texas at a flowing rate of 4,011 MCFGD on a 20/64' choke with associated condensate. It is anticipated that this well will initially produce at the sales rate of ~ 2,000 MCFGD and potentially higher in the future. The Company is currently underway constructing the production facilities, the gas flow lines and preparing the project for ongoing producing operations. The Company is also making plans for additional horizontal projects in the East Texas Basin as a direct off-set to the Company's existing vertical oil production in the area.
There exist tremendous risks and uncertainty associated with oil and natural gas development including, but not limited to, the geological and mechanical risks associated with drilling, completion and production operations. The Company can make no assurances as it relates to estimated reserves, production rates, reservoir characteristics, net or gross pay-zone, timelines, etc. for any oil and gas project.
About Allied Energy:
Allied Energy, Inc. (PINKSHEETS: AGGI) is an independent energy development firm primarily engaged in the exploration, development, and production of oil and natural gas in the continental United States. The Company relies upon its industry partners, well operators, geologists, petroleum engineers, subcontractors and financial analysts whose combined industry experience is essential to the success of each project. Allied Energy's strategic focus is the development of oil and natural gas reserves. As the fuel of choice to meet the growing demand for a clean-burning domestically produced fuel, the Company firmly believes its oil and natural gas exploration strategy will provide substantial growth to the Company for years to come. For more information: www.alliedenergy.com.
Certain statements in this release and the attached corporate profile that are not historical facts are 'forward-looking statements' within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by the use of words such as 'anticipate,' 'believe,' 'expect,' 'future,' 'may,' 'will,' 'would,' 'should,' 'plan,' 'projected,' 'intend,' and similar expressions. Such forward-looking statements involve known and unknown risks including but not limited to geological and geophysical risks inherent to the oil and gas industry, uncertainties and other factors that may cause the actual results, price of oil and natural gas, state of the economy, industry regulation, reliance upon expert recommendations and opinions, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements. The Company may have varying degrees of working interest ownership in each well and/or prospect. Thus, gross revenue projections may not be equal to what is distributed net to the Company. The Company's future operating results are dependent upon many factors, including but not limited to the Company's ability to: (i) obtain sufficient capital or a strategic business arrangement to fund its expansion plans; (ii) build the management and human resources and infrastructure necessary to support the growth of its business; (iii) competitive factors and developments beyond the Company's control including but not limited to the strength of the overall economy; and (iv) other risk factors inherent to the oil and gas industry.