Carrollton, Texas, Jan. 20, 2022 (GLOBE NEWSWIRE) -- Allied Energy Corp (OTC Pink: AGYP), an energy company focused on leasing and reworking oil and gas reserves in the most prolific hydrocarbon areas of the United States, is pleased to provide a 2021 year-in-review detailing progress and production at the Company's Green Lease, Gilmer Lease, and Prometheus Lease Sites.
The Company received their P4 and P5 permits in the spring of 2021 under the name, Allied Operating LLC, from the Texas Railroad Commission to operate oil and gas wells in the State of Texas.
GILMER LEASE 2021 IN REVIEW
The Annie Gilmer lease is a 300-acre site in the small community of Crystal Falls, Texas on the banks of the Clear Fork of the Brazos River, approximately thirty miles north of the town of Breckenridge, Texas. An executive summary of the Gilmer Lease was commissioned by the Company and completed by Petroleum Engineer Mark D. McBryde: https://www.otcmarkets.com/otcapi/company/financial-report/293640/content
During Q3 and Q4 of 2021 at the Annie Gilmer Lease, Allied reworked Well #1 and Well #5 and subsequently connected the wells to a gas powered generator for electrical power to run the pumps. The Company chose to work with gas generators initially because Tri-County estimated that it would take up to 5 months to bring upgraded electrical power (3-phase) to the site. Based on the production data received during several months of pumping during September through November Allied assessed that the gas driven motors did not provide sufficient power to effectively pump the Wells down, it was also not cost-effective based on our models.
GILMER LEASE 2022 OUTLOOK: Initial production data indicates that the pumping set up was insufficient to move the amount of fluids required using the gas bleed from the Wells. The current pump set-up yielded between 160 and 300 barrels of total fluids per day; however, the company discerned to achieve maximum potential at the Mississippi formation a pump setup that attains 1000 barrels of fluid per day, per well is required. The wells were showing between 2% to 5% oil cut even with these low pumping volumes.
Allied is currently in discussions with Tri-County to schedule installation for a 3- phase/200 amp service to the Gilmer Lease in Q1. As soon as electrical power is installed Allied will set an electrical submersible pump (ESP) in one of the wells to handle 1500 barrels of fluid per day. Allied will pump the well down and assess the data over a period of 60 days. Based on the results, we will repeat the process on each well until the lease is fully operational.
GREEN LEASE 2021 IN REVIEW
An executive summary of the Green Lease, located in Balor County, consisting of 980 acres was commissioned by the Company and completed by Petroleum Engineer Mark D. McBryde: https://www.otcmarkets.com/otcapi/company/financial-report/279883/content
Allied successfully reworked Green Lease Well M-1 and Well X-3 and both wells came online in September, 2021. After several weeks of pumping fluids it was assessed that high-capacity ESP pumps are required at both of the wells to achieve maximal oil production. In late November the Company began the process of installing one high-capacity pump and upgrading the electric supply to handle the ESP on Well M-1. The Well M-1 was brought back online in late December and the Company is currently assessing the draw down rate of fluids with the high-capacity pump.
GREEN LEASE 2022 OUTLOOK: In the coming weeks once the assessment of Well M-1 is complete, Allied will install the second ESP on Well X-3. Based on the success of Wells M-1 and X-3, Allied plans to evaluate three other Wells of interest at the Green Lease site. After achieving favorable production numbers over a 5-6 month period, Allied will plan a 3D seismic survey of the site to identify additional drilling targets.
PROMETHEUS LEASE 2021 IN REVIEW
The Company completed the acquisition of the 325 acre Prometheus Lease located in Garza County, Texas. This well was originally tested and submitted to the Texas railroad commission by Apache Corporation in 2014.
Allied successfully completed all scheduled rework of Well 1H and this well is currently online and performing as designed. Currently, Allied continues to draw the fluid down at a rate of 2000 to 2400 barrels per day. At the end of Q4, 2021, Allied has sold a total of 3 loads (approximately 160-170 barrels per load) of oil from the Prometheus Lease.
PROMETHEUS LEASE 2022 OUTLOOK: Prometheus Well 1H continues to pump as Allied refines the processes to maximize the potential of Well 1H. In order to improve the oil production from Well 1H, Allied is currently in the process of installing a transfer pump and will flare all the gas to reduce the pressure in the well. Accomplishing this will result in an increase in oil production for the well. Since the start of Q1, there have been continued oil sales from Well 1H as we look forward to seeing continued growth in numbers from this site.
CEO George Montieth summarized 2021 as a year of laying foundations: "Yes, 2021 was a foundational year for Allied in which the Company successfully achieved initial production at three of our lease sites. I am genuinely proud of my team in the field for their hard work and dedication. In less than a year our team has done almost everything we set out to do. Sure, there have been hiccups and challenges along the way, but there are with every company. We enjoy meeting these challenges head on every day, it's what we love about building Allied Energy. From a practical side we also understand that whether it's getting power to the Gilmer Wells sooner or the weather delays we were met with throughout the spring season, some things are out of your control timing wise. We now go into 2022 as a producing oil company that is selling oil to our contracted agent. Our initial production numbers have barely scratched the surface of the real potential of Allied's six existing well projects. Now that we have this foundation of six active wells, I intend to build upon that throughout 2022 by maximizing production at each well, adding new wells and leases along with other strategic ventures to benefit the company and its shareholders. Allied is a producing all-American oil company that is in the right place at the right time in history. I could not be more excited about the prospects for the upcoming year and again remain proud that we accomplished the majority of our 2021 goals as outlined to our shareholders, most notably becoming a producing oil company!"
The Company invites any and all interested parties to check back regularly at https://alliedengycorp.com/ and the corporate Twitter account https://twitter.com/AlliedEnergyCo1
About AGYP: Allied Energy Corp. is an energy development and production company acquiring oil & gas reserves in some of the most prolific hydrocarbon bearing regions of the United States. The Company specializes in the business of reworking & re-completing 'existing' oil & gas wells located in the thousands of mature oil & gas producing fields across the United States. The Company applies its knowledge, experience, and effective well-remediation technologies to achieve higher production volumes, longer well life, and more efficient recovery of the proven and available oil and gas reserves in the fields/projects in which it has acquired an ownership interest. The Company will utilize updated technologies such as hydraulic fracturing ("fracking"), drilling of lateral ("horizontal") legs in productive zones, and utilizing new cased hole electric logging to locate bypassed pays, all to enhance daily rates and oil & gas recoveries. By acquiring interests in a growing number of selected projects in various regions, Allied Energy Corp. is diversifying its exposure and effectively minimizing risk as it pursues corporate growth, top line & bottom-line revenues to the benefit of all stakeholders. There are proven, recoverable reserves contained in the many aging oil & gas fields that have been bypassed by companies moving away from these fields in search of deeper, more plentiful, but more costly reserves. The Company plans to concentrate on bypassed oil and gas as there is less competition and as mentioned above, the costs are considerably less. Additionally, the company will acquire interests in marginal wells that can be acquired at minimal cost, of which there are 420,000 wells in the U.S. Quoting Barry Russell, President of the Independent Petroleum Association of America ("IPAA") - "With approximately 20 percent of American oil production and 10 percent of American natural gas production coming from marginal wells, they are America's true strategic petroleum reserve.”
Safe Harbor Statement: This Press Release may contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The Company has tried, whenever possible, to identify these forward-looking statements using words such as "anticipates," "believes," "estimates," "expects," "plans," "intends," "potential" and similar expressions. These statements reflect the Company's current beliefs and are based upon information currently available to it. Accordingly, such forward-looking statements involve known and unknown risks, uncertainties and other factors which could cause the Company's actual results, performance or achievements to differ materially from those expressed in or implied by such statements. The Company undertakes no obligation to update or advise in the event of any change, addition or alteration to the information catered in this Press Release including such forward-looking statements.
Phone: 972-632-2393
Email: info@alliedengycorp.com
Twitter: https://twitter.com/AlliedEnergyCo1
