High Island Block 19S Prospect: In October 2012, the Company entered into an agreement to participate with industry partners in the re-entry and reclamation of an orphan well in Jefferson County, TX. Allied's share of the first well is a 3.0% working interest (2.25% net revenue interest). The work on the first well is planned for the first quarter of 2013. The Company's participation also includes the first right to participate in any future wells on the entire 320-acre lease at up to a 10% working interest (7.5% net revenue interest).
North Constitution "Hooks" Prospect: In October 2012, the Company entered into an agreement to participate with industry partners in the drilling of a 14,500' well in Jefferson County, TX. The Company is participating with a 3.25% working interest, (2.4375% net revenue interest). Plans are to spud the well during the first quarter of 2013.
J.T. Fields-Berry Lease: In November 2012, the Company acquired an 87.5% working interest (65.625% net revenue interest) in the J.T. Fields-Berry Lease in Caldwell County, TX. The lease is comprised of approximately 36 net acres and includes 5 existing wellbores that were drilled, (during the 1980's), to a depth of approximately 2,100', to the Austin Chalk/Buda formations. One of the wellbores was completed and is currently a marginal oil producer at less than 1/2 BOD. The remaining four wellbores were cased by the previous operator, but have never been completed for production.
The plan for the development of the lease is to drill a new well, obtain fresh logs to determine the precise depth of any oil bearing formation(s), and then to treat and complete the new well plus the four existing (drilled but not completed) wells. In addition to the existing wells, there is an active saltwater disposal well located on the lease. It is calculated that there could be up to 7 additional prospective well locations on the lease.
Opal Gas Unit: In December 2012, the Company acquired a 100% working interest (74%-80% net revenue interest) in the Opal Gas Unit. The leases that comprise the Unit have one vertical well that produced 1 barrel of oil and 1703 MCF of natural gas in December 2012. The Unit is comprised of approximately 703.6 net acres, and is contiguous to the Company's 186-acre "Ragsdale" lease. It is estimated that the lease could accommodate up to 6 additional vertical wells, or 2 horizontal wells.
Rogers County, Oklahoma: The Company continues to evaluate all of the interests of the general partnerships for which the Company acts as managing general partner in Rogers County, OK. The Company is conducting a review of production and expense records to determine the financial condition of the partnerships and the status of each of the partnerships' wells, (a large majority of which may be non-commercial). Based upon the findings of the review, we expect to make specific recommendations either to 1) "shut-in" wells that might benefit by a future rebound in the market prices of gas, 2) plug and abandon wells deemed to be non-commercial, or 3) continue to operate wells that are profitable or may be candidates for enhancement procedures or re-engineering to improve production.
About Allied Energy:
Allied Energy, Inc. is engaged in the oil and gas exploration and development business, with operations located primarily in Texas, Oklahoma and Ohio. The Company sponsors oil & gas partnerships through which it raises funds for the drilling and development of oil & gas wells. The Company serves as managing general partner of the partnerships and often owns differing partnership interests in the partnerships and/or differing direct interests in the properties in which the partnerships participate.
The Company's subsidiaries include Allied Operating, LLC and Allied Operating, Texas, LLC, two operating companies that are used to manage the drilling, development and operations of the oil & gas drilling partnerships sponsored by the Company, as well as for other non-affiliated oil and gas companies that are joint interest owners in drilling activities owned primarily by partnerships sponsored by the Company. The Company is also majority owner of Allied Gas Transmission, Inc., which owns the pipeline system used to transmit production from gas wells located in Rogers County, Oklahoma to gas purchasers.
The Company's ultimate strategic focus is on the development of oil and natural gas production and reserves. The Company believes that its oil and natural gas development strategy will provide growth to the Company in the future. For more information: www.alliedenergy.com
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, 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's future operating results are dependent upon many factors, including but not limited to: (I) the Company's ability to obtain sufficient capital or strategic business arrangements to fund its drilling 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
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