Carollton, Texas, February 11, 2021 – – Allied Energy Corp. (OTC PINK: AGYP), an energy company focused on acquiring and reworking provable oil and gas reserves in the most prolific hydrocarbon areas of the United States, is pleased to provide the Company a working roadmap to achieve production at Allied Energy’s Well Project #1.
Well Project #1 is Byers Heirs #2 Deu Pree Field, in Wood County Texas. This well was originally completed in the Woodbine formation from perforations of 5,736’ – 80’ making 74 barrels per day of 16-degree gravity “heavy” oil and accumulating 78,000 barrels of oil. When abandoned in 1997 the well was capable of making 60 barrels of oil per day but at the time there was no market for heavy oil and the price per barrel was discounted considerably due to the low gravity. Today there is a large demand for this type of crude oil, and it can receive a significant bonus over the posted price of West Texas Intermediate. The produced oil will be blended with condensate to raise the gravity of the product and lower the gravity of the condensate. This will alleviate any pricing discounts applied due to lower gravity of the oil and the higher gravity of the condensate.
The Byers Heirs #2 Well has been successfully re-entered and is waiting on final re-completion, which will entail the drilling of 4 or 5 short lateral legs (horizontal) to enhance the daily production rates. These lateral legs are capable of increasing production from two to five times the initial daily rate. The Company predicts that sometime in late February or early March the Company will place a work-over rig at the site. Timing is dependent on crew availability.
A work-over rig is a portable rig that is used to perform any kind of maintenance during the life of the well. If there is a mechanical failure in the well, its production will drop, thus, in order to boost up the production from these wells, work-over rigs are used. These are mobile rigs can be easily moved from one location to another to perform well repair and production enhancement work.
Allied Energy CEO George Montieth remarked: “Bringing Byers Heirs #2 Well online is our first of many projects in store for Q1-Q2, 2021. The Byers Heirs #2 Well has near term potential to produce significant revenue for Allied. Once we successfully install the work-over rig and begin production in earnest, Allied plans to lease additional acreage around this area that has significant proven oil production and continue to repeat the process with more work-over rigs and more wells. The next two wells the Company plans to bring online had a former production of 122 barrels per day and 91 barrels per day, respectively. It is my sincere hope that investors can see that through careful planning and exercising years of proven experience, Allied will soon become yet another American Success Story.”
Allied plans to begin site preparation for oil production at the Byers Heirs #2 Well site as soon as possible. This includes installing tank batteries, flowmeters, adequate piping, and electrical.
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.
Contact: Allied Energy Corporation