Allied Energy Discovers Gas at Giddings Field

Allied Energy announced the results for its horizontal drilling program in the historic Giddings Field of Grimes County, Texas.

The Howard #1H 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 tested at a flowing rate of 4,011 MCFGD on a 20/64" choke with associated condensate. It is anticipated that the well will initially produce at the sales rate of ~ 2,000 MCFGD and potentially higher in the future. The company is currently underway constructing the production facilities, the gas flow lines and preparing the project for ongoing producing operations.

"We are extremely pleased with the results we have seen thus far for this project and are now making plans for additional locations in the trend," said Steve Stengell, Allied's President. "Allied plans to continue to pursue and develop additional horizontal opportunities in the Basin and implement the newer technological advances that relate to horizontal drilling," added Stengell.



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