BOWLING GREEN, KY -- (Marketwire) -- 02/15/11 -- Allied Energy, Inc. (PINKSHEETS: AGGI) announced today that the Company is preparing to begin drilling its third Georgetown Buda horizontal well in the Giddings Field of Grimes County, Texas, the Allied Howard #3H.
The Allied Howard #2H was recently turned into production at an initial rate approximating ~ 4 million cubic feet of gas per day (including natural gas liquids) and associated condensate, and the Allied Howard #1H continues to produce in the range of 2 million cubic feet of gas per day (including natural liquids) along with associated condensate (~10 - 20 barrels per day). This equates to 2 - 3 million cubic feet of gas per day equivalent. Although no assurance can be made and risks do exist, the Company anticipates that combined production from both wells of methane gas, natural gas liquids and condensate should potentially stabilize in the range of ~170 - 200 million cubic feet of gas per month equivalent, at least for the short-term. Based on actual production test information, wellhead pressure, etc. and reports from regional experts and engineers, the Company believes the Allied Howard #2H may become the most prolific producer in the regional Georgetown Buda trend. The Allied Howard #2H is currently awaiting turn-on, while a larger J/T unit is being installed on its location. Initially, the #2H would maximize or overload production into the existing production facility causing the J/T unit to shut-in. Although production may increase or decline for the short-term, production rates typically experience an annual decline over the productive life of the well(s).
The Company is tentatively scheduled to begin drilling the Allied Howard #3H as early as 4 - 6 weeks.
'We are extremely pleased with the results we have seen thus far for the Allied Howard #1H and #2H projects and are preparing to drill our third horizontal location, the Allied Howard #3H,' said Steve Stengell, Allied's President and CEO. 'Allied plans to continue to pursue and develop additional horizontal opportunities in Central-East Texas and are now making preliminary plans to select a fourth horizontal location in Grimes County to be drilled this spring or summer,' added Stengell.
To view a quick video of Allied's operations in the 'Giddings Field' of Grimes County, Texas, please visit http://alliedenergy.com/index.php?page=video-gallery
Allied Energy, Inc. contracted Allied Gas Transmission, a majority owned subsidiary of Allied, to trench, lay line and connect the Howard #1H and #2H to the local gas market. Allied Energy, Inc. recently signed and executed a connection agreement with Atmos Energy, Inc. in order to sell gas in Grimes County, Texas.
Allied Operating Texas, LLC, a wholly owned subsidiary, was formed in 2009 for the purposes of operating and developing its vertical and horizontal drilling programs in Central-East Texas.
Allied Energy has achieved the 'Best of Bowling Green' award for the category of crude oil and natural gas production for the last three years and was recently chosen by an independent selection committee as the recipient for the Bowling Green 'Outstanding Business of the Year' community impact award for 2010.
No assurances can be made as it relates to present or future production rates or estimated reserves for any given project or the company as a whole. Tremendous risks and uncertainty are associated with oil and gas drilling, completion, development and production operations. It is impossible to estimate future rates and/or declines in production operations for oil, condensate and natural gas. The production rates forecasted herein are estimates only and subject to uncertainty.
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 operating companies and other subsidiaries, strategic industry partners, petroleum geologists, engineers, subcontractors and support personnel 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 production and reserves. 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.
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