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Allied Energy Forecasts Near Term Production At The New Byers Heirs Well Project
Allied Energy Forecasts Near Term Production At The New Byers Heirs Well Project.
About this update from Allied Energy Corporation
[{"type":"text","content":"Carrollton, Texas--(Newsfile Corp. - February 11, 2021) - Allied Energy Corp. (OTC Pink: AGYP), an energy company focused on acquiring and reworking provable oil and gas reserves in the most prolific hydrocarbon areas of the United States, is pleased to provide the Company a working roadmap to achieve production at Allied Energy's Well Project #1.Well Project #1 is Byers Heirs #2 Deu Pree Field, in Wood County Texas. This well was originally completed in the Woodbine formation from perforations of 5,736' - 80' making 74 barrels per day of 16-degree gravity \"heavy\" oil and accumulating 78,000 barrels of oil. When abandoned in 1997 the well was capable of making 60 barrels of oil per day but at the time there was no market for heavy oil and the price per barrel was discounted considerably due to the low gravity. Today there is a large demand for this type of crude oil, and it can receive a significant bonus over the posted price of West Texas Intermediate. The produced oil will be blended with condensate to raise the gravity of the product and lower the gravity of the condensate. This will alleviate any pricing discounts applied due to lower gravity of the oil and the higher gravity of the condensate.The Byers Heirs #2 Well has been successfully re-entered and is waiting on final re-completion, which will entail the drilling of 4 or 5 short lateral legs (horizontal) to enhance the daily production rates. These lateral legs are capable of increasing production from two to five times the initial daily rate. The Company predicts that sometime in late February or early March the Company will place a work-over rig at the site. Timing is dependent on crew availability.A work-over rig is a portable rig that is used to perform any kind of maintenance during the life of the well. If there is a mechanical failure in the well, its production will drop, thus, in order to boost up the production from these wells, work-over rigs are used. These are mobile rigs can be easily moved from one location to another to perform well repair and production enhancement work.Allied Energy CEO George Montieth remarked: \"Bringing Byers Heirs #2 Well online is our first of many projects in store for Q1-Q2, 2021. The Byers Heirs #2 Well has near term potential to produce significant revenue for Allied. Once we successfully install the work-over rig and begin...