Allied Energy Begins Horizontal Drilling Program in Leon County, Texas
December 20 2010 - 3:35PM
Marketwired
Allied Energy (PINKSHEETS: AGGI) announced today that the Company
has commenced drilling operations for its first horizontal well in
Leon County, Texas.
The Company plans to drill 7,000 feet +/- vertical and
approximately 4,000 feet horizontal to test the oil bearing
Woodbine Formation utilizing new and evolving fracture stimulation
methodologies.
Over the last year, there have 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. Allied plans to mimic the most
prolific wells in the play, which utilize the combination of
horizontal laterals with multi-stage hydraulic fracture treatments.
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.
In Grimes County, the Allied Operating Howard #2H was recently
drilled to a total measured depth of approximately 18,000' along
existing trends. The Howard #2H is a horizontal lateral that
encountered a series of natural gas bearing intervals while
drilling through the primary objective Buda / Georgetown Limestone
Formation.
On December 12, 2010, the Howard #2H tested at a rate of
approximately 4,000 MCFGD with associated condensate. It is
anticipated that the well will initially produce at a sales of
~2,000 MCFGD equivalent and potentially higher in the future. The
Company is currently constructing production facilities, gas flow
lines, processing facilities and other necessary surface equipment
in preparation to begin its ongoing production operations.
On May 15, 2010, Allied first horizontal location in Grimes
County, the Howard #1H, tested at a flowing rate of 4,011 MCFGD
with associated condensate.
"We are extremely pleased with the results we have seen for our
Grimes County project and are also excited about utilizing many of
the latest technological advances for horizontal drilling in Leon
County as well," said Steve Stengell, Allied's Chief Executive
Officer. "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 uncertainty 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 the last
two 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.
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.
Company Contact: Angela Stokes / Heather Age Allied Energy, Inc.
2800 Griffin Dr. Bowling Green, KY 42101 Phone: 866-256-5836 Fax:
800-251-9322 Website: http://www.alliedenergy.com Email:
info@alliedenergy.com
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