BOWLING GREEN, KY-- (OTC:AGGI.PK) November 8, 2010 -- Allied Energy announced today its plans to drillits first horizontal well in Leon County, Texas.
The Company plans to drill 7,000 feet +/- vertical and approximately 4,000 feet horizontal to test the oil bearing Woodbine Formation utilizing new and evolving fracture stimulation methodologies.
Over the last year, there have been a series of horizontal Woodbine wells on trend, which were drilled and completed for production, and reported average initial production rates, of approximately 200 to 300 BO per day. Allied plans to mimic the most prolific wells in the play, which utilize the combination of horizontal laterals with multi-stage hydraulic fracture treatments. The ability to drill horizontal laterals and apply multi-stage treatments to the Woodbine Formation has created what appears to be a growing trend of horizontal drilling activity in the regional area of the East Texas Basin.
Earlier this year in Grimes County, Texas, Allied Operating Texas, LLC drilled and completed the Howard #1H, Allied’s first horizontal well. The Howard #1H was drilled to a total measured depth of approximately 17,000 feet, including avertical depth of approximately 12,500 +/- feet and horizontal length of approximating more than 4,500 feet, 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 had an initial flowing test rate of 4,011 MCFGD on a 20/64" choke with associated condensate and has initially produced, as expected, at an estimated sales rate of ~2,000 MCFD of gas with 25 to 30 BCPDwhile maintaining strong FTP.
"We are extremely pleased with the results we have seen for our Grimes County project and are also excited about utilizing many of the latest technological advances for horizontal drilling in Leon County as well," said Steve Stengell, Allied's Chief Executive Officer. “The price for oil makes this project even more attractive”, added Stengell.
Allied Operating Texas, LLC, a wholly-owned subsidiary, was formed in 2009 for the purposes of operating and developing Allied Energy’s vertical and horizontal drilling programs in Central-East Texas Basins.
No assurances can be made as to the company’s future success and/or ability to sponsor general partnerships or other oil and natural gas projects. Nor can assurances be made as it relates to present or future production rates or estimated reserves for any given project. Tremendous risks and uncertainty are associated with oil and gas drilling, completion, development and production operations. It is impossible to accurately estimate future rates and/or declines in production operations for oil, condensate and natural gas.
Allied Energy has achieved the “Best of Bowling Green” award for the category of crude oil and natural gas production for the last two years and was recently nominated by an independent selection committee as one of three finalists for the Bowing Green “Outstanding Business of the Year” award for 2010.
About Allied Energy
Allied Energy, Inc. (OtherOTC:AGGI.PK - News) is an independent energy development firm primarily engaged in the exploration, development, and production of oil and natural gas in the continental United States. The Company relies upon its industry partners, well operators, geologists, petroleum engineers, and other operational personnel whose combined industry experience is essential to each project. Allied Energy's strategic focus is the development of oil and natural gas reserves.
For more information: www.alliedenergy.com
The financial reports herein are unaudited statements. Certain statements in this release and the attached corporate profile that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by theuse of words such as "anticipate," "believe," "expect," "future," "may," "will," "would," "should," "plan," "projected," "intend," and similar expressions. Such forward-looking statements involve known and unknown risks, including but not limited to geological and geophysical risks, risks of blow-outs and other potential damaging occurrences inherent to the oil and gas industry, and uncertainties and other factors that may cause the actual results, reliance upon expert recommendations and opinions, performance or achievements of the Company to be materially differentfrom those expressed or implied by such forward-looking statements. The Company may have varying degrees of working interest ownership in each well and/orprospect. Thus, gross revenue projections may not be equal to what is distributed net to the Company. The Company's future operating results are dependent upon many factors, including but not limited to the following: (i)the Company's ability to obtain sufficient capital or a strategic business arrangement to fund its expansion plans; (ii) the Company’s ability to build the management and human resources and infrastructure necessary to support the growth of its business; (iii) competitive factors and developments beyond the Company's control including but not limited to the strength of the overall economy; and (iv) other risk factors inherent to the oil and gas industry.
Contact:
Company Contact:
Angela Stokes / Heather Age
Allied Energy, Inc.
2800 Griffin Dr.
Bowling Green, KY 42101
Phone: 866-256-5836
Fax: 800-251-9322
Website: http://www.alliedenergy.com
Email: info@alliedenergy.com
Source: Allied Energy, Inc.