Allied Energy, Inc. (“Company”) (OTCMarkets: AGGI) today announced plans for the completion of the Smokey Clark #1 oil well located on the Company’s Smokey Clark lease in Milam, County, TX.
During May 2014 the Smokey Clark #1 well was drilled to a total vertical depth (TVD) of 6,078 feet. Hydrocarbon “shows” were encountered in the Pecan Gap, Navarro Sand and more significantly in the Austin Chalk, Eagle Ford Shale and Buda Limestone formations. Subsequent to a review of electric logs by company and consulting engineers, completion operations are now being focused in the Buda and Eagle Ford shale formations. The initial success of Eagle Ford wells in the region may influence a future decision to drill additional Eagle Ford wells on the Company’s Smokey Clark lease.
The costs of developing the Smokey Clark #1 oil well are being funded by one or more general partnerships sponsored by the Company. It is anticipated that the partnerships will hold an aggregate majority working interest in the Smokey Clark #1 well. The Company currently holds a 0.00033845% working interest, inclusive of its interests in the general partnerships.
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