During the first quarter of 2009, the Chris Begley #12-3 and #12-7 (two of the better producers) were shut-in the majority of the time in order to facilitate a transition to a new oil purchaser. Both wells are now in production.
Revenue distributions have begun and there are accrued revenues to be distributed in the near future. However, Allied Energy anticipates the revenue distribution amounts to increase as wells go online and begin producing at full capacity. Although no assurances can be made, Allied Energy is targeting combined production of 25 to 40 barrels of oil equivalent per day from its 12-well program in the future.
“We anticipate a significant increase in cash flow from these properties when all 12 wells are producing at full capacity and when we realize a much expected return in natural gas and crude prices”, said Steve Stengell, Allied Energy’s president.
