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, has completed the sale of it 2,300-acre Creek County, Oklahoma leases for a significant profit.
"This will add to the cash flow for the 3rd and 4th quarter drilling campaign and assist our efforts to become fully reporting and trading on the Over the Counter Bulletin Board within one year," said Larry Sanford, President. "Our escalating revenues from recent successes with our drilling program, coupled with our new wells being completed, will allow us to accelerate our 2008 goals."
"While the Creek County holdings are excellent properties, they yielded lower net profit results than our expectations. We are confident that our funds are better spent in Southeastern Kansas because of the success rate and the difference in drilling and lifting costs," Mr. Sanford said.
Allenergy has carefully plotted its drilling campaign of new wells for the remainder of 2008, subject to change depending on the possibility of discovering a new field in this rich geological area of our leaseholds in Southeastern Kansas.
The Company recently acquired the 80-acre Hanks lease in Chautauqua County, Kansas. Although small in size, this acquisition, which was purchased despite significant interest by others, is a North-South 80-acres adjacent to the Dark Treasures Clark lease and, importantly, atop the Longton Anticline. This lease, as geological data suggests, should be an extension of Allenergy's discoveries on our Project 4 Ball lease.
The most prolific well on the Ball lease, G4-19, was put on line this week. As previously reported, this well, according to the open hole log, far exceeds the oil production capabilities of any new well drilled on the Anticline. After the frac water is recovered and barring any other possible oilfield problems, Allenergy should be able to announce the barrelage of oil per day by early next week.
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