Business
CORRECTION: Allied Energy Begins Production Operations in the Giddings Field
CORRECTION: Allied Energy Begins Production Operations 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 commenced production operations for itsfirst horizontal well, the Allied Howard #1H, in the historic Giddings Field of Grimes County, Texas.Earlier this spring, the Allied Operating Howard #1H, was drilled to a total measured depth of approximately 17,000' in two horizontal laterals oriented northwest and southeast along existing trends. The Howard #1H encountered a series of natural gas bearing intervals while drilling throughthe primary objective Buda / Georgetown Limestone Formation.On May 15, 2010, the Howard #1H had an initial flowing test rateof 4,011 MCFGD on a 20/64\" choke with associated condensate.The Howard #1H is currently producing as expected at an estimated sales rate of ~2,000 MCFD of gas with 25 to 30 BCPD while maintaining ~ 2250 PSI FTP.\"We are extremely pleased with the results we have seenthus far for this project and are now drilling our second horizontal location,the Allied Howard #2H,\" 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, amajority 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 Pipeline – Texas, a division of Atmos Energy Corporation, in order to sell it’s gas in Grimes County,Texas.Allied Operating Texas, LLC, a wholly owned subsidiary, wasformed in 2009 for the purposes of operating and developing its vertical and horizontal drilling programs in Central-East Texas Basins. No assurances can bemade 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, developmentand production operations. It is impossible to estimate future rates and/or declines in production operations for oil, condensate and natural gas.About Allied Energy:Allied Energy, Inc. (Pinksheets:AGGI- News) is an independent energy development firm prima...