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Allied Energy, Inc: Additional Information Relating to 2010 Fiscal Year Results
Allied Energy, Inc: Additional Information Relating to 2010 Fiscal Year Results.
About this update from Allied Energy, Inc.
[{"type":"text","content":"BOWLING GREEN, KY--(Marketwire – May 27, 2011) - Allied Energy, Inc. (OTCMarkets: AGGI) today announced additional information relating to the 2010 fiscal year results reported on April 20, 2011. The Company's financial statements are available at www.alliedenergy.com and www.otcmarkets.comAllied Energy, Inc. (the “Company”) serves as the managing general partner of a number of oil and natural gas development programs. The investing partners in these partnerships provide the funds required for the drilling programs sponsored by the Company, and those investors in turn receive any proceeds from the partnership.With respect to the Allied Howard #1H well and the Allied Howard #2H well, both of which are located in Grimes County, Texas, the Company currently owns working interests of 4.145% and 3.391% respectively. The Company contemplates that during the third quarter of 2011, a rig will be moved onto the Allied Howard #3H location to begin drilling operations.For the 12 months ended December 31, 2010, the Company had a net loss of $0.306 million as compared with a profit of $0.284 million for the 12 months ended December 31, 2009. This decline in earnings is attributed to significant cost overruns and higher than expected drilling and operating expenses. In addition, our Selling, General & Administrative expenses were considerably higher than expected. We are now focused on our bottom line results for fiscal 2011 by cutting our expenses, adjusting our turnkey pricing to more effectively cover the costs to be incurred, carefully reviewing our investments and concentrating on our core business; however, we expect that, at the least, 2011 net earnings will continue to decline as a consequence of our necessary restructuring. Scott Harris, Chief Executive Officer and President, stated that changes that are planned to be made to the Company’s ongoing business model will result in oil and gas production revenues becoming a higher percentage of the Company’s overall revenues by fiscal 2013 or sooner. About Allied Energy:Allied Energy, Inc. (OTCMarkets:AGGI - News) is engaged in the oil and gas business, with operations located primarily in Texas, Oklahoma, Ohio and Colorado. The Company sponsors oil & gas drilling partnerships through which it raises funds needed for the d...