BOWLING GREEN, KY -- (Marketwire) -- 01/28/13 -- Allied Energy, Inc. ("Company") (PINKSHEETS: AGGI) today announced updates relating to its operations.
Yakesh 2-H Prospect: During December 2012, Allied Operating Texas, LLC, ("AOT"), a wholly-owned subsidiary of Allied Energy, Inc., executed a drilling contract with Independent Drilling, LLC, Kilgore, TX and commenced spudding of the Yakesh 2-H horizontal well, located in Milam County, TX.
As of January 16, 2013, total vertical depth had been reached at 6,300 feet, and after consultation and review of drilling logs, a decision was made to drill the lateral (horizontal) section through the upper Buda formation. It is anticipated that the drilling phase of the lateral section will be completed by early February 2013.
The costs of developing the Yakesh 2-H prospect are funded by two general partnerships sponsored by the Company. The partnerships hold a majority working interest in the Yakesh 2-H prospect. The Company holds a 0.1% working interest (0.075% net revenue interest), inclusive of its interests in the general partnerships.
Non-Commercial Well Update:
B. Bryant #1 Prospect: In early December 2012, the B. Bryant #1 well, located in Wood County, TX, was drilled to the Rodessa and Pettit formations at a total depth of approximately 10,100 feet.
After reaching total depth, the well was logged and Company engineers met with log analysts from Schlumberger to review the open-hole logs and make recommendations for the completion of the well.
After extensive evaluation by Schlumberger Open Hole Logging experts, Company geologists, and Allied Energy Inc.'s VP of Operations, the operational decision was made to Plug and Abandon (P&A) the well. It was determined that while the well was capable of producing on a very limited basis, it was not capable of producing in quantities necessary to cover the costs of completing the well.
The drilling of the B. Bryant #1 well was funded by two general partnerships sponsored by the Company. The partnerships hold a majority working interest in the B. Bryant #1 prospect. The Company holds a 0.05037% working interest (0.03777% net revenue interest), inclusive of its interests in the general partnerships.
Ragsdale #2 Well: In November 2012, the Ragsdale #2 well, located in Cherokee County, TX, was drilled to the Pettit formation at a total depth of approximately 10,500'.
Based on well logs run by Schlumberger, the Company believes that there are hydrocarbons present and approximately 70' of pay. A decision was made to complete the well, the operations of which are currently ongoing.
The drilling and completion of the Ragsdale #2 well was funded by two general partnerships sponsored by the Company. The partnerships hold a majority working interest in the Ragsdale #2 prospect. The Company holds a 0.25% working interest (0.1875% net revenue interest), inclusive of its interests in the general partnerships.
E. Cantrell #1: During August 2012, the E. Cantrell #1 well, located in Wood County, TX, was drilled to the Travis Peak formation at a total depth of approximately 10,709 ft.
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