Business & Finance
Tue, June 1, 2010Mon, May 31, 2010Fri, May 28, 2010Thu, May 27, 2010Wed, May 26, 2010Tue, May 25, 2010Mon, May 24, 2010Allied Energy Announces Continued Profitability and Growth for 2009
//business-finance.news-articles.net/content/201 .. continued-profitability-and-growth-for-2009.html
Published in Business and Finance on Thursday, May 27th 2010 at 5:41 GMT by Market Wire🞛 This publication is a summary or evaluation of another publication
BOWLING GREEN, KY--(Marketwire - May 27, 2010) - Allied Energy, Inc. (
The Company reported revenue of $11.7 million for 2009 as compared to $13.3 million for 2008, a decrease of $1.6 million. Gross profit for 2009 was $5.7 million as compared to $4.6 million for 2008, an increase of $1.1 million. Net income attributable to the Company for 2009 was $0.4 million.
The Company's cash and cash equivalents were $1.6 million at the end of 2009. The Company's assets increased $5.5 million during 2009 to 12.1 million from $6.6 million at the end of 2008. Cash used during 2009 included, but was not limited to, increased Company participation in drilling program syndications, numerous lease mineral rights acquisitions, development of oil producing properties, building of gas line infrastructure and other alternative investments.
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.
In October 2009, Allied Energy, Inc. formed Allied Operating Texas, LLC, a wholly owned subsidiary, for the purpose of developing its vertical and horizontal drilling programs in Leon and Grimes Counties, Texas. Allied Operating, LLC, a wholly owned subsidiary of Allied Energy, has been operating Allied Energy's producing properties and providing supervision of the Company's drilling, completion and field operations in Rogers County, Oklahoma since 2008.
In November 2009, Allied Energy, Inc. formed Allied Holdings, LLC for the purpose of acquiring 50% ownership in its 10,000' +/- office and adjoining 140,000' +/- warehousing and storage operations located in Bowling Green, Kentucky. Allied Holdings, LLC entered into joint venture with Griffin Holdings, LLC to acquire this 50% ownership interest in a building for the purchase price of $1,850,000.
"We are very proud of the infrastructure initiatives we completed in 2009. We believe our operating companies in Texas and Oklahoma provide us with better control, cost savings and an overall competitive advantage in our industry," said Steve Stengell, Allied's President. "Allied plans to continue to pursue and develop additional horizontal opportunities throughout Texas and implement the newer technological advances that relate to horizontal drilling," added Stengell.
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. The Company is currently making plans for additional horizontal projects in the East Texas Basin as a direct off-set to the Company's existing vertical oil production in the area.
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.
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.
