Allied Energy provides update on Partnerships’ Two Horizontal Oil Wells in Leon County, TX
Feb 16, 2012
OTC Disclosure News Service
Bowling Green, KY –
Allied Energy provides update on Partnerships’ Two Horizontal Oil Wells
in Leon County, TX
BOWLING GREEN, KY–(Marketwire – February 16, 2012 – Allied Energy, Inc. (the “Company”) (OTCMarkets: AGGI) today announced the following completion and production update for the Wallrath #1H Horizontal Oil Well located in Leon County, Texas, which was directed to a total measured depth (including horizontal drilling) of approximately 12,000 feet. During April 2011, the Company contracted Schlumberger to perform a 15-stage stimulation procedure on the well. The procedure resulted in the use of over 2,000,000 lbs. of sand and approximately 30,000 barrels of liquids. Following the stimulation, the well flowed naturally at rates of up to 360 BOPD and was placed on pump in mid-June 2011. The current production of the well is approximately 150 barrels of oil per day.
During the 4th quarter of 2011, the Company drilled a second horizontal oil well in Leon County. The Champion Ranch #1H was drilled in late December 2011 to a total measured depth (including horizontal drilling) of approximately 12,000 feet, and is currently in the process of completion.
The Wallrath #1H horizontal oil well and the Champion Ranch #1H horizontal oil well were drilled for certain general partnerships sponsored by the Company. Allied Energy, Inc. owns a nominal interest in each of the two above-referenced horizontal oil wells located in Leon County, TX.
About Allied Energy Inc.
Allied Energy, Inc. is an independent oil and gas development company primarily engaged in the business of providing turnkey drilling and operations management services to oil and gas general partnerships that the Company organizes and sponsors. The partnerships are formed to develop oil and natural gas reserves in the continental United States. The Company may at times participate in the same prospects for its own account outside of the partnerships. In undertaking its oil and natural gas activities, Allied relies upon industry partners and well operators, as well as consulting geologists and petroleum engineers, and other operational personnel. The Company’s majority-owned subsidiary, Allied Gas Transmission, Inc. (“AGT”), owns and operates a natural gas gathering and transmission line to service certain partnership wells in Rogers County, Oklahoma. Allied also has two wholly-owned subsidiaries that act as operators for the sponsored general partnerships of the Company in Oklahoma and Texas, Allied Operating, LLC (“AO”), and Allied Operating Texas, LLC (“AOT”), respectively.
Forward-Looking and Continuing Statements:
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 geophysicalrisks 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, and 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 (i) the Company’s ability to obtain sufficient capital or a strategic business arrangement to fund its expansion plans; (ii) the Company’s ability to 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.
Allied Energy, Inc.
2427 Russellville Road
Bowling Green, KY 42101
The above news release has been provided by the above company via the OTC Disclosure and News Service. Issuers of news releases and not OTC Markets Group Inc. are solely responsible for the accuracy of such news releases.