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Allied Energy Provides Operations Report for Grimes and Leon Counties, Texas and Northern Ohio BOWLING GREEN, KY-- (OTC: AGGI.PK) January 11, 2011 -- Allied Energy provided the following report for its horizontal drilling and other current field operation
Allied Energy Provides Operations Report for Grimes and Leon Counties, Texas and Northern Ohio BOWLING GREEN, KY-- (OTC: AGGI.PK) January 11, 2011 -- Allied Energy provided the following report for its horizontal drilling and other current field operation.
About this update from Allied Energy, Inc.
[{"type":"text","content":"BOWLING GREEN, KY-- (OTC: AGGI.PK) January 11, 2011 --Allied Energy provided the following report for its horizontal drilling andother current field operations in Grimes and Leon Counties, Texas and Northern Ohio.Allied Howard #1H (Grimes County, Texas)– Production OperationsThe Allied Howard #1H produced and sold 67 million cubic feet of natural gas equivalent, including approximately 45 million cubic feet of methane gas and 840 BOE (barrels of oil equivalent) of condensate and NGL (natural gas liquids) for the 31-day period from December 1, 2010 to December 31, 2010.Excluding downtime of approximately five days, the well actually produced at a rate approximating 80 million cubic feet of gas (MCFG) for the month while in its first month of production.It generally takes 4-6 months to better manage downtime and lease operating expenses (LOE) for a horizontal well of this size and depth. Typically, LOEs decline as a percentage of gross revenue for a significant portion of the life of the well. Although production for this well may or may not increase over the short-term, oil and gas wells typically decline for the long-term. The Company is projecting LOEs equal to 10% of gross revenues for the long-term although they may be higher for the short-term. These LOEs include but are not limited to water disposal/hauling, electricity, pumping/administration, gas transmission, severance taxes, compression and general maintenance.Allied Howard #2H – Production Test The Howard #2H tested at a rate of approximately 4,000 MCFG per day with associated condensate. We have constructed production facilities, gas flow lines, processing facilities andother necessary surface equipment in preparation to begin ongoing production operations for the Howard #2H.The Company is pleased with the volumes of gas, wellhead pressure, etc. demonstrated during the production test for the Allied Howard #2H and expects to have the well on-line as early as this week. Although no assurances can be made and risks do exist, we would like to target approximately 100 million cubic feet of gas equivalent per month for an initial production rate for this well in the near future including methane, condensate and NGL sales. Again, this is a target estimate for an initial production rate for the well, and whatever the...