Allied Energy has commenced drilling operations on its second horizontal well, Allied Howard #2H, in the Giddings field of Grimes County, Texas.
Earlier this spring, the company’s first horizontal well, Howard #1H, was drilled to a total measured depth of approximately 17,000′ in two horizontal laterals oriented northwest and southeast along existing trends.
The Howard #1H well encountered a series of natural gas bearing intervals while drilling through the primary objective Buda/Georgetown Limestone Formation.
On May 15, 2010, Howard #1H had an initial flowing test rate of 4,011mcfgd on a 20/64" choke with associated condensate and has initially produced as expected at an estimated sales rate of about 2,000mcfd of gas with 25bcpd to 30bcpd while maintaining about 2250 PSI FTP.
Allied recently signed and executed a connection agreement with Atmos Pipeline – Texas in order to sell its gas in Grimes County.