Allied Energy Prepares to Begin Drilling Operations for Its Second Horizontal Well in the Giddings Field

Allied Energy, Inc. (PINK: AGGI) announced that the Company is making preparations to begin drilling its second horizontal well in the historic Giddings Field of Grimes County, Texas.

The press release is quoted as saying:

Earlier this spring, Allied’s first location, the Allied Operating Howard #1H, was drilled to a total measured depth of approximately 17,000′ in two horizontal laterals oriented northwest and southeast along existing trends. The Howard #1H encountered a series of natural gas bearing intervals while drilling through the primary objective Buda / Georgetown Limestone Formation. On May 15, 2010, the Howard #1H tested at a flowing rate of 4,011 MCFGD on a 20/64″ choke with associated condensate. It is anticipated that the well will initially produce at the sales rate of ~ 2,000 MCFGD and potentially higher in the future. The company has constructed the production facilities, gas flow lines, processing facilities and other necessary surface equipment in preparation to begin its ongoing production operations.

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