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Allied Energy Begins Drilling Operations for its Second Horizontal Well in the Giddings Field
Allied Energy Begins Drilling Operations for its Second Horizontal Well in the Giddings Field.
About this update from Allied Energy, Inc.
[{"type":"text","content":"BOWLING GREEN, KY-(10/18/10) - Allied Energy, Inc. (Pinksheets:AGGI- News) announced today that the Company has commenced drilling operations for its second horizontal well, the Allied Howard #2H, in the historic Giddings Field of Grimes County, Texas.Earlier this spring, the Allied Operating Howard #1H, Allied’s first horizontal well, was drilled to a total measured depth of approximately17,000' 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 rateof 4,011 MCFGD on a 20/64\" choke with associated condensateand has initially produced as expected at an estimated sales rate of ~2,000 MCFD of gas with 25 to 30 BCPD while maintaining ~ 2250 PSI FTP.\"We are extremely pleased with the results we have seenthus far for this project and anticipate to finalize drilling operations forthe Allied Howard #2H in the next 60 – 90 days,\" said Steve Stengell, Allied's President.Allied Energy, Inc. contracted Allied Gas Transmission, a majority owned subsidiary of Allied, to trench, lay line and connect the Howard#1H to the local gas market. Allied Energy, Inc. recently signed and executed a connection agreement with Atmos Pipeline – Texas, a division ofAtmos Energy Corporation, in order to sell it’s gas in Grimes County, Texas.Allied Operating Texas, LLC, a wholly owned subsidiary, was formed in 2009 for the purposes of operating and developing its vertical and horizontal drilling programs in Central-East Texas Basins.No assurances can be made as it relates to present or future production rates or estimated reserves for any given project or the company as a whole. Tremendous risks and uncertainty are associated with oil and gas drilling, completion, development and production operations. It is impossible to estimate future rates and/or declines in production operations for oil, condensate and natural gas.About Allied Energy:Allied Energy, Inc. (Pinksheets:AGGI- News) 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 opera...