Allied Energy provided the following report regarding its 12-well program (USCBM) in Rogers County, Oklahoma.
The Noble Brewer #12-2 and Chris Begley #12-3, #12-4, #12-5, #12-10, #12-11, #12-6, #12-8, #12-12 and #12-7 are all in production.
The Noble Brewer #12-1 and Chris Begley #12-9A need some additional completion work before they can be added to production. The Noble Brewer #12-1 needs to be perforated in a different zone up-hole. The Chris Begley #9A has been re-completed in an additional Mississippi Lime formation and the well is now being equipped for production.
Therefore, 10 of the 12 wells are now producing at or near full capacity. We should have all 12 wells contributing oil and/or gas in the future.
During the first quarter, the Chris Begley #12-3 and #12-7 (two of the better producers) were shut-in the majority of the time in order to facilitate a transition to a new oil purchaser. Both wells are now in production. Revenue distributions have begun. However, the initial revenue only represents partial production periods at much lower crude prices due to the fact that some of the wells were shut-in for the transition.
Thus, the Company anticipates that production revenue distributions for each quarter will increase along with production volumes and crude prices. This program has reportedly sold nearly 700 barrels of crude along with gas since the end of April.
"We have seen a more recent increase in production volume and cash flow from these properties due to the fact that 10 of the 12 wells are producing at full capacity while crude prices are on the rise," said Steve Stengell, Allied's President.
No assurances can be made for present or future estimated production, projected timelines for operations and estimated reserves. There are tremendous risks and uncertainty associated with oil and gas drilling, completion and production.
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