AllEnergy Corporation, a growth-oriented international energy company, has contracted the purchase of the Bell Lease located near Abilene, Taylor County, Texas. The purchase contains 40 acres with a producing oil well #1, rework well #2, and an additional drill site for well #3. In addition to the lease the Company acquired consent to inject salt water to a nearby salt water disposal well.
The Bell Lease is located adjacent to the Reddin unit. The Reddin has been in production for 70 years and has produced over 6 million barrels of oil. The production is very long-term. AllEnergy has current annual production of 3600 barrels on well #1 before improvements. We will rework well #2 and drill a new 3rd well on the Bell lease next quarter.