SOURCE: Allied Energy, Inc.
BOWLING GREEN, KY--(Marketwire - Aug 22, 2012) - Allied Energy, Inc. (the "Company") (PINKSHEETS: AGGI) announces today the following completion and production update for the Ragsdale #1 Well located in Cherokee County, Texas.
The Company commenced drilling operations of the Ragsdale #1 well on March 30, 2012. The well was directionally drilled to a total measured depth (TMD) of 10,674 feet and a total vertical depth (TVD) of 9,976 on April 26, 2012. The well was tested and determined to be commercially productive in the Pettit formation, located within a 21 ft. net pay zone. The well was completed and put on line on August 16, 2012.
As of August 21, 2012, 2,878 mcf of gas and 140 barrels of oil have been sold, and an additional 80 barrels of oil remains in the holding tank. The average daily production for the most recent 5-day period is 454.6 mcfd of gas, 15.4 barrels of oil and 18.5 barrels of water. The well is free flowing into the gas transmission sales line, which has a static pressure of 300-370 psi.
Within the next 45 days, it is anticipated that a compressor will be installed, which will allow the well to produce with less backpressure, which is expected to result in higher levels of production at that time.
Allied's president Scott Harris said, "We are very pleased with the results we are seeing, and are now making plans to drill a direct offset to the Ragsdale #1 well on the same lease during the 4th quarter of this year."
The Company owns a 0.22636% working interest, and, an approximately 2.75% net revenue interest in the Ragsdale #1 well.
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 geophysical risks inherent to the oil and gas industry, and uncertainties and other factors, such as the 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, that may cause the actual results 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.