Allied Energy has said that it is making preparations to begin the production operations for the Allied Howard #1H well and the drilling operations of its second horizontal well, the Allied Howard #2H, in the Giddings Field of Grimes County, Texas.

The Howard #1H well tested at a flowing rate of 4,011mcfgd on a 20/64" choke with associated condensate on 15 May 2010.

The company said that construction of the production / surface facilities, NGL processing unit, etc is now complete and production operations for the Allied Howard #1H well is slated to begin in the next two weeks.

Allied Gas Transmission, a majority owned subsidiary of Allied, has completed building 4,000+/- feet of pipeline and hydro-tested the line at 2,220psi in order to begin selling gas to the Atmos Energy Interconnect.

The Pioneer Rig #33 is slated to begin moving on location in the next week to begin drilling.

Allied Energy recently signed and executed a connection agreement with Atmos Energy in order to sell gas in Grimes County, Texas.