BOWLING GREEN, KY -- (Marketwire) -- 02/23/11 -- Allied Energy (PINKSHEETS: AGGI) provided the following update for its horizontal program in Leon County, Texas.
Over the last year or two, there has been a series of horizontal Woodbine wells on trend, which were drilled and completed for production and reported average initial production rates of approximately 200 to 300 BO per day. Some horizontal wells in this trend have produced at a rate as high as 900 barrels of oil per day. The ability to drill horizontal laterals and apply multi-stage treatments to the Woodbine Formation has created what appears to be a growing trend of horizontal drilling activity in the regional area of the East Texas Basin.
Allied Operating Texas and Pioneer Rig #33 successfully drilled the directional curve and set / cemented casing in preparation to begin drilling our horizontal lateral in the Woodbine formation for the Allied Wallrath #1H in Leon County, Texas. A formal oil show was encountered immediately upon drilling the curve into the Woodbine Sand and the well had a continued oil show reported by the mudlogger while drilling the majority section of the lateral. Although oil and/or gas shows are considered favorable indications that the well may be capable of production, there are numerous wells that have such shows but that never become capable of commercial production for any of a number of reasons. Schlumberger is tentatively scheduled to perform a multiple-stage frac treatment for the Allied Wallrath #1H in April.
'We are extremely pleased with the results we have seen for our Leon County horizontal project and are excited about completing the well for production,' said Steve Stengell, Allied's President and CEO. 'The price for oil makes this project even more attractive', added Stengell.
Allied Operating Texas, LLC, a wholly-owned subsidiary, was formed in 2009 for the purposes of operating and developing Allied Energy's vertical and horizontal drilling programs in Central-East Texas Basins.
No assurances can be made as to the company's future success and/or ability to sponsor general partnerships or other oil and natural gas projects. Nor can assurances be made as it relates to present or future production rates or estimated reserves for any given project. Tremendous risks and uncertainties are associated with oil and gas drilling, completion, development and production operations. It is impossible to accurately estimate future rates and/or declines in production operations for oil, condensate and natural gas.
Allied Energy has achieved the 'Best of Bowling Green' award for the category of crude oil and natural gas production for three consecutive years and was recently nominated by an independent selection committee as one of three finalists for the Bowing Green 'Outstanding Business of the Year' award for 2010.
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, and other operational personnel whose combined industry experience is essential to each project. Allied Energy's strategic focus is the development of oil and natural gas reserves.
For more information: www.alliedenergy.com
The financial reports herein are unaudited statements. 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, risks of blow-outs and other potential damaging occurrences inherent to the oil and gas industry, and uncertainties and other factors that may cause the actual results, 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 following: (i) the Company's ability to obtain sufficient capital or a strategic business arrangement to fund its expansion plans; (ii) the Company's ability to 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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