SANTA ANA, Calif., Aug. 25, 2004 (PRIMEZONE) -- Allenergy Incorporated (Pink Sheets:ALRY) today announced it has purchased a 430-acre premium gas lease in Okmulgee County located in northeastern Oklahoma.
Referred to as the "Kelly Lease," the parcel contains ten wells -- two of which are free-flowing and eight that are fully equipped, shut-in and ready to be brought online and into production. There are also eight to ten additional developmental sites on this lease.
The property is adjacent to the highly-productive Okfuskee County area which has multiple producing zones and where the brand new "Caney Shale" zone is currently being tested. This same area also produces abundant coalbed methane gas. The Kelly lease was purchased on a three-year note that will be paid with approximately 15-percent of gross production.
Allenergy President, Rodger W. Garrity, states, "It is an exceptional opportunity, as the equipment alone has a higher replacement value than the cost of the note.
This acquisition meets our current expansion criteria and objective -- which is increasing the existing rate of production and putting new wells into production on both newly acquired leases and those presently owned by Allenergy."
"We are also in negotiations on a number of other leases," Garrity adds, "and anticipate the announcement of more new acquisitions in the very near future."
An important aspect of the restructured Allenergy acquisition team is the addition of Larry Sanford as Vice President of Field Operations. He has 20-years experience in all aspects of the oil industry, and has successfully completed more than 600 wells throughout Oklahoma and Kansas. Since joining the company April 1st, Mr. Sanford and his primary field crew have been putting investor wells into production and increasing rate of production on existing company leases - with notable success, especially within the last 30-days. Mr. Sanford has also been appointed to the Board of Directors of Allenergy Inc.
Allenergy's accelerated expansion program also includes contracting Consulting Engineer Doug Byford, who received a degree in Pertroleum Engineering Technology from Oklahoma State University (Stillwater, OK) in 1985. Mr. Byford is also the owner/operator of Oklahoma Oil Tactics, Inc. and is a seasoned operator of numerous producing oil and gas properties located in Oklahoma.
About Allenergy
Allenergy was incorporated in Oklahoma in February 1989 as a closely held company for various long-term oil and gas leases for investment purposes only. In 1997, new management refocused on oil field service work and increasing oil and gas production on existing leases. In February 2001, Allenergy became a public company (ALRY) and turned full attention to oil production, drilling and exploration, and natural gas drilling and development. In late 2002, Allenergy also launched a developmental investor-participation Drilling and Exploration Program. Today, production of both oil and gas is steadily increasing, initial investor-participation wells are in final stages of completion and the company is actively engaged in growth through acquisition. The convergence of record price for both oil and natural gas and the company's current drive for increased rate of production are anticipated to create an era of unprecedented rapid growth and profitability.
Note: Except for historical information contained herein, the statements in this release are forward looking statements that are made pursuant to the Safe Harbor provision of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause the company's actual results in future periods to differ materially from forecasted results. Such risks and uncertainties include, but are not limited to; market conditions, competitive factors, the ability to successfully complete additional financings and other risks.
For information write: Allenergy Inc.,1820 East Garry Avenue, Suite 111, Santa Ana, CA 92705, phone 949-955-1411. E-mail: allenergy@sbcglobal.net or visit www.allenergy-online.com.
Investor relations contact: Greg Leone 619-596-3374 -- email gleone1@cox.net