Allied Energy provided the following report regarding its projects in Washington and/or Athens Counties, Ohio.

The Humphrey #1, Pannel #1, Kidder #1 and Bailey #1 each have been drilled to 4,000 +/- feet and encountered indications of gas in multiple formations including various shale sections and the Oriskany Sandstone.

The Humphrey #1 was completed for production and turned into the line producing on the 10th of October. The well has recently been producing in the estimated range of 25,000 - 30,000 cubic feet of gas equivalent while returning fluid.

The Pannel #1 and Bailey #1 have also been completed for production. The Pannel #1 is producing at an estimated rate of 45,000 cubic feet of gas per day while returning fluid. It is anticipated that the Pannel #1 should produce at a higher rate once all of the frac fluid is returned. The Kidder is currently in the completion process.

Based on log interpretation, gas pressure/shows during completion and recommendations from field experts, the estimated target rate for the Bailey #1 is 130,000 cubic feet of gas per day.

The Sillaman #1 and Ladd #1 have each been drilled to a total depth of 4,000 +/- feet and encountered indications of gas in several formations including the Oriskany Sandstone and various members of the Ohio Shale. Both wells are tentatively scheduled for completion this month. Drilling is also scheduled to begin very soon for the final program well located in Fisher County, Texas.

Drilling is tentatively scheduled to begin for the first of the two Ohio wells this month. We have excavated and built both drill-sites in Pawnee County, Oklahoma and are preparing to begin drilling the first of two wells (Foust #9-9 and Foust #10-9).

The Company now has plans to drill one additional well location (Watkins #1) for a total of nine (9) wells in Washington and/or Athens Counties, Ohio.

The Company can make no assurances as to present and/or future production rates or estimates for any given well or project. There are risks and uncertainties associated with any oil and gas drilling, completion and production operations.

"Weather permitting, we anticipate field operations to very busy this winter in southeast Ohio," said Steve Stengell, Allied's President.

Tags: Allied Energy