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Allied Energy Announces Plans for Horizontal Drilling Program in Leon County, Texas
Allied Energy Announces Plans for Horizontal Drilling Program in Leon County, Texas.
About this update from Allied Energy, Inc.
[{"type":"text","content":"BOWLING GREEN, KY-- (OTC:AGGI.PK) November 8, 2010 -- Allied Energy announced today its plans to drillits 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.Earlier this year in Grimes County, Texas, Allied Operating Texas, LLC drilled and completed the Howard #1H, Allied’s first horizontal well. The Howard #1H was drilled to a total measured depth of approximately 17,000 feet, including avertical depth of approximately 12,500 +/- feet and horizontal length of approximating more than 4,500 feet, in two horizontal laterals oriented northwest and southeast along existing trends. The Howard #1H encountered a series of natural gas bearing intervals while drilling through the primary objective Buda / Georgetown Limestone Formation. On May 15, 2010, the Howard #1H had an initial flowing test rate of 4,011 MCFGD on a 20/64\" choke with associated condensate and has initially produced, as expected, at an estimated sales rate of ~2,000 MCFD of gas with 25 to 30 BCPDwhile maintaining strong FTP.\"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 ver...