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Thu, June 11, 2009 Allied Energy, Inc.: Allied Energy Provides a Production Update for Its 12-Well Program in Rogers County, Oklahoma
BOWLING GREEN, KY--(Marketwire - June 11, 2009) - Allied Energy, Inc. (
The Noble Brewer #12-2 and Chris Begley #12-3, #12-4, #12-5, #12-10, #12-11, #12-6, #12-8, #12-12 and #12-7 are all in production.
The Noble Brewer #12-1 and Chris Begley #12-9A need some additional completion work before they can be added to production. The Noble Brewer #12-1 needs to be perforated in a different zone up-hole. The Chris Begley #9A has been re-completed in an additional Mississippi Lime formation and the well is now being equipped for production.
Therefore, 10 of the 12 wells are now producing at or near full capacity. We should have all 12 wells contributing oil and/or gas in the future.
During the first quarter, the Chris Begley #12-3 and #12-7 (two of the better producers) were shut-in the majority of the time in order to facilitate a transition to a new oil purchaser. Both wells are now in production. Revenue distributions have begun. However, the initial revenue only represents partial production periods at much lower crude prices due to the fact that some of the wells were shut-in for the transition.
Thus, the Company anticipates that production revenue distributions for each quarter will increase along with production volumes and crude prices. This program has reportedly sold nearly 700 barrels of crude along with gas since the end of April.
"We have seen a more recent increase in production volume and cash flow from these properties due to the fact that 10 of the 12 wells are producing at full capacity while crude prices are on the rise," said Steve Stengell, Allied's President.
No assurances can be made for present or future estimated production, projected timelines for operations and estimated reserves. There are tremendous risks and uncertainty associated with oil and gas drilling, completion and production.
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.
