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Allied Energy Provides Results for its Second Horizontal Well in the Giddings Field
Allied Energy Provides Results for its Second Horizontal Well in the Giddings Field.
About this update from Allied Energy, Inc.
[{"type":"text","content":"BOWLING GREEN, KY-- Allied Energy, Inc. (Pinksheets: AGGI - News) announced today that the Company has successfully drilled and tested its second horizontal well in the historic Giddings Field of Grimes County, Texas.The Allied Operating Howard #2H was drilled to a total measured depth of approximately 18,000' along existing trends. The Howard #2H is a horizontal lateral that encountered a series of natural gas bearing intervals while drilling through the primary objective Buda / Georgetown Limestone Formation.On December 12, 2010, the Howard #2H tested at a rate of approximately 4,000 MCFGD with associated condensate. It is anticipated that the well will initially produce at a sales of ~2,000 MCFGD equivalent and potentially higher in the future. The Company is currently constructing production facilities, gas flow lines, processing facilities and other necessary surface equipment in preparation to begin its ongoing production operations.On May 15, 2010, Allied first horizontal location in Grimes County, the Howard #1H, tested at a flowing rate of 4,011 MCFGD with associated condensate. \"We are extremely pleased with the results we have seenthus far for both the Allied Howard #1H and #2H projects and will closely monitor their ongoing production characteristics,” said Steve Stengell, Allied's President. \"Allied plans to continue to pursue and develop additional horizontal opportunities in Central-East Texas and implement the newer technological advances that relate to horizontal drilling and production,\" added Stengell.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 Energy, Inc. in order to sell gas in Grimes County, Texas.Allied Operating Texas, LLC, a wholly owned subsidiary, was formedin 2009 for the purposes of operating and developing its vertical andhorizontal drilling programs in Central-East Texas.Allied Operating Texas, LLC recently moved Pioneer Rig #33 on location to begin drilling the Company’s first horizontal well in Leon County, Texas to test the Woodbine formation.No assurances can be made as it relates to present or future production rates or estimated reserves for any given pr...