BOWLING GREEN, KY, Jul 09, 2010 (MARKETWIRE via COMTEX) -- (PINKSHEETS: AGGI) Allied Energy, Inc. announced that it has agreed with Atmos Pipeline - Texas, a division of Atmos Energy Corporation of Dallas, Texas, to connect Allied's natural gas delivery system to Atmos' pipeline in Grimes County, Texas for the purposes of delivering and selling to the markets natural gas production from Allied's recent discovery.
On May 15, 2010, the Allied Howard #1H horizontal well in Grimes County tested at a flow rate of 4,011 mcf of gas/day (MCFGD) on a 20/64" choke with associated condensate. The well has been shut-in awaiting pipeline connection since that date. It is anticipated that the well initially will produce approximately 2,000 MCFGD and potentially higher in the future. The Company is currently underway constructing the production facilities and the gas flow lines, as well as preparing the project for ongoing producing operations. As a result of having assigned significant portions of the well to its sponsored partnerships and other partners, the Company owns a direct 5% working interest in the Allied Howard #1H well location, and it manages investor partnerships and joint ventures that own an aggregate approximate 80% working interest in the well location. The Company currently owns an 88% working interest in the remainder of the entire approximate 8,000 acre lease on which the Allied Howard #1H is located. Although with respect to additional drilling on the remainder of the lease, the majority of the interest will be available to its investor partnerships and joint ventures, the Company intends to retain a larger working interest for its own account than it owns in the Allied Howard #1H.
"We are pleased to have the opportunity to connect our natural gas system to the Atmos Energy line in Grimes County. Atmos Energy is the largest distributor of natural gas in our community, and we look forward to an ongoing and productive relationship with Atmos," said Steve Stengell, Allied's President.
Allied Energy, Inc. has contracted Allied Gas Transmission, a majority-owned subsidiary of Allied Energy that is involved in the construction of natural gas transmission systems, to perform the construction and connection of Allied Energy's natural gas flowlines to the Atmos Energy pipeline.
Allied Energy, Inc. also has contracted Allied Operating Texas, LLC, a wholly-owned subsidiary of Allied Energy that is involved in the drilling and operation of oil and gas wells, for the purposes of operating and developing its vertical and horizontal drilling programs in the East Texas Basin.
No assurances can be made concerning present or future production rates or estimated reserves for any given project or the Company as a whole. Tremendous risks and uncertainties are associated with oil and gas drilling, completion, development and production operations. It is impossible to estimate future rates and/or declines in production operations for both condensate and natural gas.
About Allied Energy:
Allied Energy, Inc. (PINKSHEETS: AGGI) is an independent energy development firm primarily engaged in the exploration, development, and production of oil and natural gas in the continental United States. The Company relies upon its industry partners, well operators, geologists, petroleum engineers, subcontractors and financial analysts whose combined industry experience is essential to the success of each project. Allied Energy's strategic focus is the development of oil and natural gas reserves. Given that natural gas is the fuel of choice to meet the growing demand for a clean-burning domestically-produced fuel, the Company firmly believes its natural gas exploration strategy will provide substantial growth to the Company for years to come. For more information: www.alliedenergy.com
Forward-Looking 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, 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 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.
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