Allenergy Begins Quest for Dark Treasures

Allenergy Inc. said that it has initiated due diligence on the potential acquisition of Dark Treasures Oil and Gas, whose 960-acre holdings include producing properties in Kansas's Chautauqua and Montgomery counties. The Dark Treasures properties consist of four leases, the Moore, Clark, Pendleton and Bayless, with each lease held by one producing gas well.

The four wells in the Dark Treasures portfolio are currently producing over 80 thousand cubic feet per day of natural gas. The Dark Treasures acreage is strategically located along the Longton Anticlime, just north of the Company's Ball Lease from Allenergy Project Four.

The Moore Lease consists of five wells drilled to the Redd Sand. Three of these five wells would be put on pump immediately, while the remaining two wells are behind-pipe ready to be perforated and treated.

"Typically, the Redd Sand formation in this area has an initial production ranging from 40-60 barrels of oil per day," said Allenergy President Larry Sanford. "According to the geology report and five core analyses on the Redd Sand formation, along with other zones, 1 million recoverable barrels is quite realistic," he continued. "The geology report also indicated that 200,000 cubic feet per day of gas from the Mississippi and Redd Sand formations is also achievable."

Allenergy, Inc. was incorporated in Oklahoma in February 1989 as a closely held company holding various long-term oil and gas leases for investment purposes only. In 1997, new management refocused on oil field service work and increasing oil and gas production on existing leases. In February 2001, Allenergy became a public company and turned its full attention to oil production, drilling and exploration, and natural gas drilling and development. In late-2002, Allenergy also launched a developmental investor-participation Drilling and Exploration Program. Today, production of both oil and gas is steadily increasing, initial investor-participation wells are in final stages of completion and the company is actively engaged in growth through acquisition. The convergence of record prices for both oil and natural gas and the company's current drive for increased rates of production are anticipated to create an era of growth and profitability for Allenergy.

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