Allied Energy Announces Plans to Acquire Additional Working Interests in Pawnee County, Oklahoma
Allied Energy, Inc. provided the following update regarding its plans to acquire additional interests in Pawnee County, Oklahoma.
The Company is currently finalizing plans to acquire an additional 20% working interest in the Foust #7-9, #8-9, #9-9 and #10-9 well sites and the lease located in Pawnee County.
The Company believes there exists production potential in this area from a multitude of formations including, but not limited to, the Bartlesville Sand, Prue Sand, Layton Sand, Misener Sand, Red Fork Sand and other potentially productive formations.
The Foust #7-9 is awaiting a connection to the gas line and should be in production very soon. The Foust #7-9, having multiple sandstone formations to contribute gas or oil, has demonstrated very promising gas and/or oil production potential and may be the very best well drilled in this area. Although no assurance can be made, the Foust #7-9 demonstrated oil and gas return pressures that blew the swabbing unit out of the hole and over the service rig during completion (see the attached video).
The Company believes that a 35-50 BOE (barrels of oil equivalent) for the Foust #7-9 alone is a reasonable initial daily production target rate estimate based on all of the information to date. Although the Company is very confident in the careful planning and development of its projects, there can be no assurances made that commercial oil and or gas will be established for any given well or group of wells.
While the electric log interpretation and other post-drilling data for the #8-9 was initially impressive, the #8-9 did not respond favorably to completion and needs more evaluation before it can be deemed commercial for production. At least for the short-term, Allied, as the Managing General Partner of various partnerships, has elected to replace this program well with the nearby #8-9A which has recently been re-completed for production in the Red Fork sand in an effort to add production to the initial 2-well program.
Drill-site locations for the Foust #9-9 and Foust #10-9 have been excavated, built and are ready to be drilled in the very near future. The Company has secured a drilling rig to perform the drilling and has decided to re-schedule for when the Company completes its final legal review of title for leases in this area. This is expected to happen in the next several weeks. “We are prepared to begin drilling the Foust #9-9 in the very near future,” said Steve Stengell, Allied’s President.
Allied Operating, LLC, a wholly owned subsidiary of Allied Energy, will serve as the future operator of these properties. Allied Operating, LLC currently supervises, the drilling, completion and/or well operations of more than 70 wells for Allied Energy located on 6,000 +/- acres in Rogers County, Oklahoma.