Allied Begins Drilling 2nd HZ Well in Giddings Field

Giddings Field
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Allied has commenced drilling operations for its second horizontal well, the Allied Howard #2H, in the historic Giddings Field of Grimes County, Texas.

Earlier this spring, the Allied Operating Howard #1H, Allied's first horizontal well, 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 had an initial flowing test rate of 4,011 MCFGD on a 20/64" choke with associated condensate and has initially produced as expected at an estimated sales rate of ~ 2,000 MCFD of gas with 25 to 30 BCPD while maintaining ~ 2250 PSI FTP.

"We are extremely pleased with the results we have seen thus far for this project and anticipate to finalize drilling operations for the Allied Howard #2H in the next 60 - 90 days," said Steve Stengell, Allied's President.



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