BOWLING GREEN, Ken., Oct. 24, 2007 (PRIME NEWSWIRE) -- Allied Energy (Pink Sheets:AGGI) announced today that it has successfully drilled the first four of thirteen wells on its leaseholds in southern Rogers County, Oklahoma. Today, Allied moved the rig onto the fifth well location and drilling should commence tomorrow.
The company has successfully drilled the Smith Hickory #1, Smith Hickory #2, Smith Hickory #3 wells, and the Ray Minor #1 and encountered gas in multiple coal seams on each well. There were also some oils shows that were encountered in all four wells. However, until logs are run and further testing is done, it is not yet known if this oil will be commercially viable. If commercial amounts of oil are present in any of the wells, Allied intends to co-produce both oil and gas.
"We anticipate drilling the remaining nine wells in the next six weeks," said Steve Stengell, Allied's Executive Vice President of Operations. "As these wells are drilled and deemed commercially viable, we are moving immediately into completing the wells."
This area is a southern extension of where the Company is executing a strategy of developing conservative projects with very consistent returns. Allied is focused on securing additional acreage in Rogers County with the goal of drilling about 150-200 CBM wells over the next few years.
About Allied Energy Group
Allied Energy, Inc. (Pink Sheets: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, 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. As 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 should provide substantial growth to the company for the years to come.
For more information: www.alliedenergy.com
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, 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; and (iv) other risk factors inherent to the oil and gas industry.