Carrollton, Texas--(Newsfile Corp. - May 17, 2021) - Allied Energy Corp. (OTC Pink: AGYP), an energy company focused on leasing and reworking oil and gas reserves in the most prolific hydrocarbon areas of the United States, is pleased to announce that the Company has leased 300 acres containing five additional oil wells in Crystal Falls, Texas identified as part of the Annie Gilmer Lease.
The Annie Gilmer lease is in the small community of Crystal Falls, Texas on the banks of the Clear Fork of the Brazos river, approximately thirty miles north of the town of Breckenridge, Texas. There a total of five wells drilled on the lease, that is approximately 300 acres. There are five wells on the lease that were drilled to the Mississippi formation that is encountered at approximately 4100' below the surface of the earth. The Mississippi formation, when caught on good geologic structure can produce prolific oil and gas cumulative numbers. There were six wells drilled on the lease starting in the mid 70's with the last being drilled in 1989. Since the initial well, the lease has produced over five hundred thousand (5000,000) barrels of high gravity oil and over five hundred million (500,000,000) cubic feet of very rich natural gas. There are two permitted saltwater injection well on the lease. One of the injection wells will be re-converted to an active oil and gas producer.
Allied CEO George Montieth elaborated on the acquisition: "We are thrilled to add the Annie Gilmer Lease wells to our ever-expanding portfolio of Texas oil wells. Allied currently has a crew on the ground this week at this new location and expects to release flow rates, videos and other pertinent data shortly. Investors can also expect updates about our Green Lease location as the workover rig is now just waiting on weather to move onto the lease."
Allied is pleased to inform our shareholders that this acquisition, just like the Green Lease acquisition, was completed through a non-dilutive, all-cash purchase and immediately adds significant value to Allied's bottom line as a new asset on the books.
The Annie Gilmer wells have re-pressured since the shut-in dates and are capable of flowing oil and gas at this time. Prudent operations will allow these wells to produce at optimal rates to assure the recovery of the oil and gas reserves.
The Annie Gilmer lease, according to drilling logs, also contains potential oil and gas reserves in the Caddo formation at a depth of approximately 3250' below the surface of the earth. The Caddo formation has never been produced on the lease, however, there have been many Caddo wells completed immediately surrounding the Annie Gilmer lease. The Caddo formation will be examined closely to determine the potential for virgin oil and gas reserves.
About AGYP: Allied Energy Corp. is an energy development and production company acquiring oil & gas reserves in some of the most prolific hydrocarbon bearing regions of the United States. The Company specializes in the business of reworking & re-completing 'existing' oil & gas wells located in the thousands of mature oil & gas producing fields across the United States. The Company applies its knowledge, experience, and effective well-remediation technologies to achieve higher production volumes, longer well life, and more efficient recovery of the proven and available oil and gas reserves in the fields/projects in which it has acquired an ownership interest. The Company will utilize updated technologies such as hydraulic fracturing ("fracking"), drilling of lateral ("horizontal") legs in productive zones, and utilizing new cased hole electric logging to locate bypassed pays, all to enhance daily rates and oil & gas recoveries. By acquiring interests in a growing number of selected projects in various regions, Allied Energy Corp. is diversifying its exposure and effectively minimizing risk as it pursues corporate growth, top line & bottom-line revenues to the benefit of all stakeholders. There are proven, recoverable reserves contained in the many aging oil & gas fields that have been bypassed by companies moving away from these fields in search of deeper, more plentiful, but more costly reserves. The Company plans to concentrate on bypassed oil and gas as there is less competition and as mentioned above, the costs are considerably less. Additionally, the company will acquire interests in marginal wells that can be acquired at minimal cost, of which there are 420,000 wells in the U.S. Quoting Barry Russell, President of the Independent Petroleum Association of America ("IPAA") - "With approximately 20 percent of American oil production and 10 percent of American natural gas production coming from marginal wells, they are America's true strategic petroleum reserve."
Safe Harbor Statement: This Press Release may contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The Company has tried, whenever possible, to identify these forward-looking statements using words such as "anticipates," "believes," "estimates," "expects," "plans," "intends," "potential" and similar expressions. These statements reflect the Company's current beliefs and are based upon information currently available to it. Accordingly, such forward-looking statements involve known and unknown risks, uncertainties and other factors which could cause the Company's actual results, performance or achievements to differ materially from those expressed in or implied by such statements. The Company undertakes no obligation to update or advise in the event of any change, addition or alteration to the information catered in this Press Release including such forward-looking statements.
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