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Allied Energy Announces Natural Gas Discovery for Its Horizontal Drilling Program in Giddings Field, Texas

^{Published on 2010-05-17 10:20:18 - Market Wire}
 

BOWLING GREEN, KY--(Marketwire - May 17, 2010) - Allied Energy, Inc. (PINKSHEETS: [ AGGI ]) announced the results today for its horizontal drilling program in the historic Giddings Field of Grimes County, Texas.

The Howard #1H was drilled to a total measured depth of approximately 17,000' 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 tested at a flowing rate of 4,011 MCFGD on a 20/64" choke with associated condensate. It is anticipated that the well will initially produce at the sales rate of ~ 2,000 MCFGD and potentially higher in the future. The company is currently underway constructing the production facilities, the gas flow lines and preparing the project for ongoing producing operations.

"We are extremely pleased with the results we have seen thus far for this project and are now making plans for additional locations in the trend," said Steve Stengell, Allied's President. "Allied plans to continue to pursue and develop additional horizontal opportunities in the Basin and implement the newer technological advances that relate to horizontal drilling," added Stengell.

In the first quarter of 2009, Allied Energy, Inc. formed Allied Gas Transmission, a majority owned subsidiary, for the purpose of developing the Company's future gas market and natural gas transmission systems in Rogers County, Oklahoma. Allied Energy, Inc. has contracted Allied Gas Transmission to trench, lay line and connect the Howard #1H to the local gas market.

In 2009, Allied Energy, Inc. also formed Allied Operating Texas, LLC, a wholly owned subsidiary, for the purposes of operating and developing its vertical and horizontal drilling programs in the East Texas Basin.

No assurances can be made as it relates to present or future production rates or estimated reserves for any given project or the company as a whole. Tremendous risks and uncertainty are associated with oil and gas drilling, completion, development and production operations. It is impossible to estimate future rates and/or declines in production operations for both condensate and natural gas.

About Allied Energy:

Allied Energy, Inc. (PINKSHEETS: [ AGGI ]) 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, subcontractors and financial analysts whose combined industry experience is essential to the success of each project. Allied Energy's strategic focus is the development of oil and natural gas reserves. As the fuel of choice to meet the growing demand for a clean-burning domestically produced fuel, the Company firmly believes its oil and natural gas exploration strategy will provide substantial growth to the Company for years to come. 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, price of oil and natural gas, state of the economy, industry regulation, reliance upon expert recommendations and opinions, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements. 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 including but not limited to the strength of the overall economy; and (iv) other risk factors inherent to the oil and gas industry.