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Allied Energy Corporation Reviews 2021 Oil Leases Progress to Production and Provides 2022 Outlook
Allied Energy Corporation Reviews 2021 Oil Leases Progress to Production and Provides 2022 Outlook.
About this update from Allied Energy Corporation
[{"type":"text","content":"\n Carrollton, Texas, Jan. 20, 2022 (GLOBE NEWSWIRE) -- Allied Energy Corp (OTC Pink: AGYP), an energy company focused on leasing and reworking oil and gas reserves in the most prolific hydrocarbon areas of the United States, is pleased to provide a 2021 year-in-review detailing progress and production at the Company's Green Lease, Gilmer Lease, and Prometheus Lease Sites. The Company received their P4 and P5 permits in the spring of 2021 under the name, Allied Operating LLC, from the Texas Railroad Commission to operate oil and gas wells in the State of Texas. GILMER LEASE 2021 IN REVIEW The Annie Gilmer lease is a 300-acre site in the small community of Crystal Falls, Texas on the banks of the Clear Fork of the Brazos River, approximately thirty miles north of the town of Breckenridge, Texas. An executive summary of the Gilmer Lease was commissioned by the Company and completed by Petroleum Engineer Mark D. McBryde: https://www.otcmarkets.com/otcapi/company/financial-report/293640/content During Q3 and Q4 of 2021 at the Annie Gilmer Lease, Allied reworked Well #1 and Well #5 and subsequently connected the wells to a gas powered generator for electrical power to run the pumps. The Company chose to work with gas generators initially because Tri-County estimated that it would take up to 5 months to bring upgraded electrical power (3-phase) to the site. Based on the production data received during several months of pumping during September through November Allied assessed that the gas driven motors did not provide sufficient power to effectively pump the Wells down, it was also not cost-effective based on our models. GILMER LEASE 2022 OUTLOOK: Initial production data indicates that the pumping set up was insufficient to move the amount of fluids required using the gas bleed from the Wells. The current pump set-up yielded between 160 and 300 barrels of total fluids per day; however, the company discerned to achieve maximum potential at the Mississippi formation a pump setup that attains 1000 barrels of fluid per day, per well is required. The wells were showing between 2% to 5% oil cut even with these low pumping volumes.  Allied is currently in discussions with Tri-County to schedule installation for a 3- phase/200 amp service to the Gilmer Lease in Q1. As soon as electrical power is installed Allied will set an electrical su...