Business & Finance
Business and Finance
Business and Finance
Wed, June 10, 2009
Tue, June 9, 2009 Allied Energy, Inc.: Allied Energy, Inc. Provides a Historical Summary of Operations for Its First Two Wells in Pawnee County,
BOWLING GREEN, KY--(Marketwire - June 9, 2009) - Allied Energy, Inc. (
The first well that Allied drilled in this project was the Eric Foust 7-9, which was drilled to a depth of about 3,000 feet. The well had shows during drilling in several reservoirs, and the log revealed at least five intervals that should be tested. Allied started with the Misner at 2882-86' and perforated and tested it. It had a trace of oil and some gas but was deemed to not be commercially viable. The company then moved up-hole to the Bartlesville and perforated it from 2480-90'. The well has some oil, and gas and this interval will be put into production at a later date.
Allied then went up to an intriguing zone at 2150' and decided to test this seemingly gas rich zone, which is known locally as the Prue. With some successful gas tests in the area, the Company knew that this zone could be gas rich. After perforating from 2162-70', the well began blowing gas out of the hole before the perforating gun was even retrieved out of the well bore.
"When swabbing the well after acidizing it, the gas actually blew the swabbing tool and about 200 pounds of cable out of the well bore and into the air about 40 feet," said Steve Stengell, President of Allied Energy. "Thankfully, nobody was hurt, but it was a very clear confirmation that this reservoir has a lot of gas to be recovered, since there is evidently still quite a bit of gas drive left in the reservoir," he added.
The well was initially put into production in December after being tied into the gas pipeline that runs through the area. The well had initial production rates of 180 to 210 thousand cubic feet of gas per day (MCFD) during its first few days of production. The gas in this well that was being used to run the gas driven motor was wet, and so the motor would shut off periodically, making it difficult to get a consistent fluid recovery drive. Therefore, it was decided to shut the well in until electric was run to the well and work on the salt water disposal well was completed, which has now been done. The electric company will be turning on the meter this week.
Allied then drilled the Eric Foust 8-9, which was drilled to a depth of about 2,990 feet. The well encountered numerous drilling difficulties and had only minor amounts of oil and gas in the Bartlesville after completion. While not commercially viable, the well was converted into a salt water disposal well after perforating from 2705 to 2715 feet and recovering only minor amounts of oil and gas.
"Due to our relationship with the original operator and owner of the lease, we were able to get the operator to log and analyze a nearby well bore that had been shut-in for years but that had good production from the Bartlesville," said Stengell.
The previous operator cleaned out the well bore and recommended that the well be completed for production. So, Allied completed it in the Red Fork and renamed the well the Eric Foust 8-9A. The well is expected to produce oil and gas based on initial results from swabbing and production tests.
"We really think that this lease has quite a bit of potential, since there are so many oil and gas bearing reservoirs that have either not been tested or clearly have not been depleted," added Stengell. "These two wells will be put into production as they are, but we know that they both have other zones that we plan to go back and complete for production. We're also analyzing the logs from this area as we believe there may be a bigger play here that has been 'left behind' that we could develop," he continued.
Revenue distribution should begin for the Foust #7-9 and #8-9A in the next 90-120 days.
No assurances can be made as it relates to future production rates, rates of return or estimated reserves. There are tremendous risks and uncertainties associated with oil and gas drilling and development.
About Allied Energy, Inc.
Allied Energy, Inc. (
The Company has more than 6,000 acres under lease, more than 70 wells under development (110 +/- well-bores under control) and continues to build its own gas line infrastructure system in Rogers County to maximize its price for gas at the wellhead. Allied and its partners are also participating in oil and gas projects located in Leon County, Texas, Morgan County, Colorado and Washington/Athens Counties, Ohio.
The Company has a wholly owned subsidiary, Allied Operating LLC, including a field office, ten (10) employees and various equipment located in Oolagah, Oklahoma. Allied Operating supervises the Company's field operations (120 +/- well-bores) located in Rogers and Pawnee Counties, Oklahoma.
Earlier this year, Allied Energy, Inc. formed Allied Gas Transmission, a majority owned subsidiary, also located in Rogers County, Oklahoma. Allied Gas Transmission is currently developing a gas pipeline / transmission system in Rogers County.
The Company's audited financial statements can be viewed at [ www.alliedenergy.com ] or [ www.pinksheets.com ]
For more information: [ www.alliedenergy.com ]
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 the use 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 inherent to the oil and gas industry, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements. It is impossible to accurately forecast or predict oil and/or natural gas production and reserves. The projections herein are only estimates. The Company can make no assurance that commercial production will be obtained, and if obtained, in such quantities to make the project commercial. The Company may have varying degrees of working interest ownership in each well and/or prospect. 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 Company's ability to: (i) obtain sufficient capital or a strategic business arrangement to fund its expansion plans; (ii) 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; and (iv) other risk factors inherent to the oil and gas industry. The Company's geological and geophysical evaluations of its prospects are often times based on recommendations from regional experts, geologists and other professionals. However, Allied cannot make any assurance that the recommendations of and/or information received from these professionals are completely valid and will result in the commercial production of oil and/or gas.
