Allied Energy starts production of the Gilmer Lease wells in Texas

Allied Energy

Allied Energy, a company focused on oil and gas production, leasing, and reworking projects in Texas, announced this Thursday it has reached production in three wells located on the Gilmer Lease.

Firstly, the Gilmer Lease area is a small community of Crystal Falls, Texas. It is on the banks of the Clear Fork of the Brazos River, approximately thirty miles north of the town of Breckenridge. According to the company’s statement, its crews focused efforts at wells 1,2, and 5, specifically.

As a result, since October 11, those three locations have been pumping and producing both oil and natural gas. Moreover, since the start of production, Allied Energy has identified a regional natural gas company interested in purchasing the output through a Gas Purchase Agreement.

In addition, Allied Energy CEO, George Montieth commented: “I am pleased with the progress at the Gilmer Lease location. Three wells have been reworked and re-completed and are now back in production.”

He also remarked. “Allied has reached an important milestone in that we have achieved initial oil production at two of our lease locations. We have two wells producing at the Green Lease and three wells producing at the Gilmer Lease.”

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Allied Energy identified virgin reserves at the Caddo formation

On the other hand, the company had been working on these wells since May, 2021; when the company leased five wells on the Annie Gilmer Lease. The wells were drilled to the Mississippi formation encountered at approximately 4100′ below the surface of the earth.

Furthermore, the wells started producing oil in the mid 70’s with the last being drilled in 1989. Since then, the Gilmer 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.

Consequently, the company had an interest in acquiring these properties, as they might have been rich in resources at the Caddo formation. In fact, the company identified that the Caddo formation has never been produced on the lease. Therefore, the company examined closely and determined potential virgin oil and gas reserves.

Finally, the company acquired the properties through a non-dilutive, all-cash purchase, which immediately added to the company’s value portfolio. As for now, Allied Energy’s project manager, Curtis Boyles, will be on the ground at the Prometheus Lease, focusing attention on the H-1 well, which might start producing shortly.

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