Production Resumed at Allied Well
Allied provided the following report for its horizontal Georgetown Buda production operations in Grimes County, Texas.
The Allied Howard #2H resumed production on March 12, 2011 and, over the weekend, averaged 6 million cubic feet of gas per day along with associated condensate.
The Allied Howard #1H continues to produce at a rate of ~2.5 million cubic feet of gas per day equivalent and has produced nearly $1 million in gross revenue (in today's prices) since it was turned into production the latter part of 2010.
Although production may increase or decline for the short-term, production rates typically experience an annual decline over the productive life of the well(s).
Although no assurances can be made, the Company estimates that combined production from both wells of methane gas, natural gas liquids and condensate should potentially stabilize in the estimated range of ~170 - 200 million cubic feet of gas per month equivalent, at least for the short-term.
The Company is tentatively scheduled to begin drilling the Allied Howard #3H as early as 2 - 4 weeks.
"Based on all of the pertinent production test information, expert opinions and actual production data, we remain confident that the Allied Howard #2H may be the most prolific horizontal Georgetown Buda producer in the entire trend," said Steve Stengell, Allied's President and CEO. "Allied plans to continue to pursue and develop additional horizontal opportunities in Central-East Texas and plans to drill the Allied Howard #4H in Grimes County as early as this spring or summer and potentially a fifth location this fall," added Stengell.
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