Message #1 From:
Jason Date: October 26, 2007 09:49:28 PM
Allenergy Inc. Updates Production
INDEPENDENCE, Kan., Oct. 15 /PRNewswire-FirstCall/ -- Allenergy, Inc.
(Pink Sheets: ALRY), with a 17-year history in the oil and gas industry and
current involvement in the multi-billion dollar natural gas fields in Kansas
and Oklahoma, today is updating August and September production numbers and a
recent report on our G-4-15 Redd Sand well located on the Ball Lease in
Chautauqua County, Kansas.
June and July oil and gas production remained consistent with May but in
August dropped 10 % to the equivalent of 1360 BOPD. The eight wells reported
on the East Ball were put in production with the existing equipment but
experienced internal field problems with electrical shorts, flow line leaks
and fittings that wouldn't allow fluids to reach the tank battery. Three
wells have since been reworked and are producing 3 BOPD.
'Five wells are in need of rework but at that time we exerted our efforts
to prepare for the completion of the G-4-15 Redd Sand well while weather
conditions were in our favor. We felt this decision was in the best interest
of our shareholders and the Company. Our efforts have been awarded,' said
Larry Sanford, President.
Since September 1 Allenergy has increased gas production from 3.5 million
cubic feet per month to 6.5 million cubic feet. The oil production numbers
have increased to 1345 barrels of oil per month resulting with the equivalent
of gas to oil a total of 1995 barrels of oil per month. Since October 1 the
Company has sold 570 barrels of oil and 320 barrels ready for the marketer.
Gas sales remain the same pace as September but will increase as the G-4-15
well progresses.
Our new Redd Sand well has been a challenge to control because of the
extraordinary turbulence that is taking place in this formation. Normal
pumping methods just allowed gaseous fluid at uncontrollable volume to be
produced. Presently the annulus (casing) is shut in at 210 psi with a back
pressure valve on the tubing set at 225 psi to allow actual pumping of fluid
that is providing oil from the zone. Now that the Company has control of this
well, initial production rate can be established soon.
Luther Park has commented that this new discovery is the best he has seen
since the Blasie and Melander fields located 21/2 miles East of the Ball
Lease. These two fields produced around 100,000 thousand barrels of oil but
prematurely lost the gas drive it needed. We are completing the
G-4-15 well in a manner to sustain this gas drive for a longer producing life.
The Ball Lease has more acreage than both the Blasie and the Melander
combined. Allenergy has leased the Feed Lot ( Melander ) which is part of the
Bayless 'B' acquisition. As of this date, no natural gas wells have been
drilled on this acreage. There are successful producing wells currently to
the East and South of this 160 acres.
The Company has numerous applications on hand of qualified personnel from
surrounding oil companies that wish to work for Allenergy. 'Our success in
this area has afforded us the ability to obtain seasoned people to our staff
and field operations. The team at Allenergy has proudly worked long and hard
hours, but now is the time to grow and prepare for these exciting times,' Mr.
Sanford said.
About Allenergy: Allenergy, Inc. (OTC: ALRY) is strategically focused on
areas of Kansas and Oklahoma believed to contain more than 1.5 trillion cubic
feet of natural gas and helium at shallow depths. The Company currently holds
approximately 7,000 acres of leased land with more than 150 oil and gas wells
on its producing properties.
Note: Certain statements in this news release may contain 'forward
looking' information within the meaning of rule 175 under the Securities Act
of 1933 and Rule 3b-6 under the Securities Act of 1934 and are subject to the
safe harbor created by those rules. All statements, other than statements of
fact, included in this release, may include forward-looking statements that
involve risks and uncertainties. There can be no assurance that such
statements will be accurate and actual results and future events could differ
materially from those anticipated in such statements.
Contacts: J.C. Friend at jcallenergy@aol.com Allenergy, Inc.: 877-277-8171.
E&E Communications Paul Knopick, (949) 707-5365 pknopick@eandecommunications.com
