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 ofGrimes County, Texas.
Earlier this spring, the Allied Operating Howard #1H, wasdrilled to a total measured depth of approximately 17,000' in two horizontallaterals oriented northwest and southeast along existing trends. The Howard #1Hencountered 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.
TheHoward #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 horizontalopportunities in Central-East Texas and implement the newer technologicaladvances that relate to horizontal drilling and production," addedStengell.
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 andexecuted a connection agreement with Atmos Pipeline – Texas, a division ofAtmos 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 andhorizontal drilling programs in Central-East Texas Basins. No assurances can bemade as it relates to present or future production rates or estimated reservesfor any given project or the company as a whole. Tremendous risks anduncertainty are associated with oil and gas drilling, completion, developmentand production operations. It is impossible to estimate future rates and/ordeclines in production operations for oil, condensate and natural gas.
About Allied Energy:
Allied Energy, Inc. (Pinksheets:AGGI- News)is an independent energy development firm primarily engaged in the exploration,development, and production of oil and natural gas in the continental UnitedStates. The company relies upon its operating companies and other subsidiaries,strategic industry partners, petroleum geologists, engineers, subcontractorsand support personnel whose combined industry experience is essential to thesuccess of each project. Allied Energy's strategic focus is the development ofoil and natural gas production and reserves. The Company firmly believes itsoil and natural gas exploration strategy will provide substantial growth to theCompany for years to come. For more information: www.alliedenergy.com
Certain statements in this release and the attached corporateprofile that are not historical facts are "forward-lookingstatements" within the meaning of the Private Securities Litigation ReformAct of 1995. Such statements may be identified by the use of words such as"anticipate," "believe," "expect,""future," "may," "will," "would,""should," "plan," "projected,""intend," and similar expressions. Such forward-looking statementsinvolve known and unknown risks including but not limited to geological andgeophysical risks inherent to the oil and gas industry, uncertainties and otherfactors that may cause the actual results, price of oil and natural gas, stateof the economy, industry regulation, reliance upon expert recommendations andopinions, performance or achievements of the Company to be materially differentfrom those expressed or implied by such forward-looking statements. The Companymay have varying degrees of working interest ownership in each well and/orprospect. Thus, gross revenue projections may not be equal to what isdistributed net to the Company. The Company's future operating results aredependent upon many factors, including but not limited to the Company's abilityto: (i) obtain sufficient capital or a strategic business arrangement to fundits expansion plans; (ii) build the management and human resources andinfrastructure necessary to support the growth of its business; (iii)competitive factors and developments beyond the Company's control including butnot limited to the strength of the overall economy; and (iv) other risk factorsinherent to the oil and gas industry.
Contact:
Heather Age
Allied Energy, Inc.
2800 Griffin Dr.
Bowling Green, KY42101
Phone: 866-256-5836
Fax: 800-251-9322
Website: http://www.alliedenergy.com
Email:info@alliedenergy.com