Business
Allied Gas Transmission Operations Update
Allied Gas Transmission Operations Update.
About this update from Allied Energy, Inc.
[{"type":"text","content":"Allied Gas Transmission Operations UpdateBOWLING GREEN, KY-- (Marketwire - 03/01/11)- Allied Energy, Inc., through its majority owned subsidiary (60% majority ownership), Allied Gas Transmission, provided the following update today forits more recent expansion and pipeline system development in Grimes County,Texas.Allied Energy, Inc. contracted Allied Gas Transmission (AGT), a majority owned subsidiary of Allied, to trench, layline and connect the Howard #1H and #2H to the local gas market. In 2010,Allied Energy, Inc. signed and executed a connection agreement with Atmos Energy, Inc. in order to sell gas in Grimes County.The Allied Howard #1H is presently producing at a rate of ~2.5 million cubic feet of gas per day equivalent and the Allied Howard #2H is currently awaiting turn-on, while a larger J/T unit is being installed on its location. Initially,the #2H would maximize or overload production into the existing production facility causing the J/T unit to shut-in. Although production may increase or decline for the short-term,production rates typically experience an annual decline over the productive life of the well(s).Although no assurances can be made, the Company estimates that combined production from both wells of methane gas, natural gas liquids and condensate should potentially stabilize in the estimated range of~170 - 200 million cubic feet of gas per month equivalent, at least for the short-term. Based on actual production test information, wellhead pressure, etc. and reports from regional experts and engineers, the Company believes the Allied Howard #2H may become the most prolific producer in the regional Georgetown Buda trend.The Company is tentatively scheduled to begin drilling the Allied Howard #3H as early as 3 – 5 weeks and has plans to drill a fourth horizontal, the Allied Howard #4H, this spring or summer. The Company’s plan is to produce and deliver gas from the #1H, #2H and #4H wells directly through the Allied Gas Transmission line to the end purchaser, Atmos Energy main line connection. Allied is targeting gross production volume estimates of up to 7– 10 million cubic feet of gas equivalent per day combined production (transported through the AGT line) from these three horizontal wells within the next year.\"We are extremely pleased with the results we have...