Allied Energy Provides an Operations Report for its HorizontalPrograms in the Giddings Field
BOWLING GREEN, KY-9/30/10- Allied Energy, Inc. (Pinksheets: AGGI- News)announced today that the Company is making preparations to commence productionoperations for the Allied Howard #1H and begin drilling its second horizontalwell, the Allied Howard #2H, in the historic Giddings Field of Grimes County,Texas.
On May 15, 2010, the Howard #1H tested at a flowing rate of4,011 MCFGD on a 20/64" choke with associated condensate. Construction of the production / surface facilities, NGL processing unit,etc. is now complete and production operations for the Allied Howard #1H isscheduled to begin in the next two weeks.
Allied Gas Transmission, a majority owned subsidiary of Allied,has completed building 4,000+/- feet of pipeline and hydro-tested the line at2,220 PSI in order to begin selling gas to the Atmos Energy, Inc. Interconnect.
Road and location construction is currently underway for theAllied Howard #2H well and the Pioneer Rig #33 is scheduled to begin moving onlocation in the next week to begin drilling.
"We are extremely pleased with the results we have seenthus far in the Giddings Field and look forward to utilizing the technologicaladvances that relate to horizontal drilling and production," said SteveStengell, Allied’s President. “We are also making tentative plans for athird location in the future”, added Stengell.
Allied Energy, Inc. recently signed and executed a connectionagreement with Atmos Energy, Inc. in order to sell 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.
No assurances can be made as it relates to present or futureproduction rates or estimated reserves for any given project or the company asa whole. Tremendous risks and uncertainty are associated with oil and gasdrilling, completion, development and production operations. It is impossibleto 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 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:
Company 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