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Allied Energy to Begin Drilling Operations for Second Horizontal Well in Giddings Field
Allied Energy to Begin Drilling Operations for Second Horizontal Well in Giddings Field.
About this update from Allied Energy, Inc.
[{"type":"text","content":" 0 false 18 pt 18 pt 0 0 false false false BOWLING GREEN, KY-- Allied Energy, Inc.(Pinksheets:AGGI - News) announced today that the Company is making preparations to begin drilling its second horizontal well in the historic Giddings Field of Grimes County, Texas.Earlier this spring, Allied’s first location, the Allied Operating Howard #1H, 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 tested at a flowing rate of4,011 MCFGD on a 20/64\" choke with associated condensate. It is anticipated that the well will initially produce at the sales rate of ~ 2,000MCFGD and potentially higher in the future. The company has constructed the production facilities, gas flow lines, processing facilities and other necessary surface equipment in preparation to begin its ongoing production operations.\"We are extremely pleased with the results we have seen thus far for this project and are now making plans for our second horizontal location,\" said Steve Stengell, Allied's President. \"Allied plans tocontinue 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 formed in 2009 for the purposes of operating and developing its vertical and horizontal drilling programs in Central-East Texas.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 ...