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Mon, May 24, 2010
Sun, May 23, 2010
Fri, May 21, 2010
Allied Energy Announces Plans for Additional Horizontal Drilling Programs in the East Texas Basin
BOWLING GREEN, KY--(Marketwire - May 21, 2010) - Allied Energy, Inc. (
The Company is currently planning, through Allied Operating Texas, LLC, a wholly owned subsidiary, to operate and drill additional horizontal wells near the Company's proven existing vertical production in the East Texas Basin. The new horizontal project area is located in close proximity to Allied's recently announced successful discovery in Grimes County, Texas, and will target the Company's oil prone reserves at depths of ~ 8,000 to 10,000 feet true vertical depth. The initial proposed horizontal well has a total measured depth planned of 12,000 to 14,000 feet. The Company's believes that its existing vertical oil production could be significantly enhanced through the application of horizontal drilling and multi-stage "frac" stimulation technologies that have become available to the industry. Such methods have been proven commercially viable by Companies that have drilled and produced various horizontal Shale Gas plays within the continental US. Although no assurances can be made, vertical wells in the target area typically produce in the range of 7,000 - 10,000 BO per year while horizontal wells recently drilled in similar areas approximate 50,000 - 70,000 BO per year.
On May 15, 2010, Allied tested the Howard #1H Well located in Grimes County, Texas at a flowing rate of 4,011 MCFGD on a 20/64" choke with associated condensate. It is anticipated that this 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 in Grimes County and are now making plans for additional horizontal wells in the Basin," said Steve Stengell, Allied's President. "We plan to optimize our horizontal wells by utilizing new frac technologies that are currently economic for both oil and natural gas wells to enhance recoverable reserves," added Stengell.
In the first quarter 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 Grimes County, Texas.
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. (
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.