Allenergy, Inc., with a 17-year history in the oil and gas industry and current involvement in the multi-billion dollar natural gas fields in Kansas and Oklahoma, said the year 2007 has been a challenge to follow the business plan due to inclement weather conditions for the first seven months.
"Our objective for 2007 was to acquire lease acreage on and around the Longton Anticline (situated in Chautauqua Counties in Southeastern Kansas) and to rework existing wells then start an extensive drilling program with revenue from these existing wells," said Larry Sanford, President.
The Company's leasing campaign progressed as planned, acquiring 2,097 acres leased along the Anticline with 1,500 acres pending. "Although small in quantity the strategic location of this acreage is tremendous in quality," Mr. Sanford said. As the winter weather started to subside and access was available to enter leases, the contract service companies were becoming backlogged for months which continued to hinder our progress.
Early plans were to purchase a well servicing company but with these conditions the decision was eminent. On April 9 Allenergy acquired Rex Horning Well Service and immediately began to service the Company's needs and also provide another avenue for income servicing other oil and gas companies. And then came the floods. Service work was abruptly halted. The Company purchased ATV's to be able to gain access and make minor repairs to keep wells pumping and maintain revenue.
"Through all the adversities, we were able to increase revenue over 300% from year to year for the first 7 months of 2007," said Mr. Sanford.
Furthermore, the remaining five months helped salvage the year allowing the Company to post a remarkable 2000 BOPM. This 30th press release of the year continues to display the importance of our dedicated team and the acquisition of Rex Horning Well Service was the key ingredient permitting the Company to make these claims.
The drilling program was obviously delayed, but enabled the Company additional time to reevaluate and compile new valuable geological data to commence the Anticline program. We filed 14 Notice Of Intents with the Kansas Corporation Commission and have since drilled two of those 14 NOI's and extensively reworked one well all on Allenergy's Ball Lease atop the Longton Anticline.
"In summation, 2007 was challenging for our Company and our Shareholders. With dedication and knowledge we were able to overcome large obstacles and still achieve remarkable and factual accomplishments. Beginning in January 2008 the Company will maintain this momentum with plans in place to drill 12 wells in the first 6 months. Preparations have been made in advance to quickly expedite the completion of each new well to recover from lost time in 2007 preventing Allenergy Inc from posting 4000 barrels of oil per month, as projected for the last quarter of 2007. Instead this will be realized in the first quarter of 2008 because of our increased dedication, manpower, and advanced preparation to overcome any adversities that may occur in the coming New Year. Allenergy's main focus has always been in the Shareholders' best interest and we will continue aggressively to prove our worthiness," Mr. Sanford concluded.
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