BOWLING GREEN, KY -- (Marketwire) -- 09/30/10 -- Allied Energy, Inc. (PINKSHEETS: AGGI) announced today that the Company is making preparations to commence production operations for the Allied Howard #1H and begin drilling its second horizontal well, the Allied Howard #2H, in the historic Giddings Field of Grimes County, Texas.
On May 15, 2010, the Howard #1H tested at a flowing rate of 4,011 MCFGD on a 20/64' choke with associated condensate. Construction of the production / surface facilities, NGL processing unit, etc. is now complete and production operations for the Allied Howard #1H is scheduled to begin in the next two weeks.
Allied Gas Transmission, a majority owned subsidiary of Allied, has completed building 4,000+/- feet of pipeline and hydro-tested the line at 2,220 PSI in order to begin selling gas to the Atmos Energy, Inc. Interconnect.
Road and location construction is currently underway for the Allied Howard #2H well and the Pioneer Rig #33 is scheduled to begin moving on location in the next week to begin drilling.
'We are extremely pleased with the results we have seen thus far in the Giddings Field and look forward to utilizing the technological advances that relate to horizontal drilling and production,' said Steve Stengell, Allied's President. 'We are also making tentative plans for a third location in the future,' added Stengell.
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.
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.
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.