SANTA ANA, Calif., Oct. 4, 2004 (PRIMEZONE) -- Allenergy Incorporated (Pink Sheets:ALRY) today announced it has put another Creek County well into production.
Allenergy currently holds approximately 5,000 acres of oil and gas leases in Creek County, Oklahoma. On the company's Silver City lease, completion personnel put the existing Fowler number 1-A well "on pump" and Allenergy is pleased to report immediate accelerated oil production fully repaid all completion costs within three days.
Evaluation studies have further identified and selected four additional existing wells on Creek County leases that are now scheduled for re-completion. The first two (the Miller number B-2 well on the Markwell-Blair lease and the Briggs number 1 well on the Silver City lease) will be put on pump and back into accelerated production within the next three weeks. Evaluation studies are also in progress for additional leases and more existing wells are being slated for recompletion.
Based on recent successes, Allenergy has decided it is in the shareholders best interest to maintain full and total focus on the company's core business of both oil and gas production. Therefore, even though Allenergy announced on February 3, 2005, it had signed an initial Acquisition Agreement to acquire 100% of Costaco, Inc., both parties were mutually unable to agree upon the terms and conditions of the purchase on or before March 15, 2004 (as required by the Acquisition Agreement).
Accordingly, both parties are mutually released from any and all liabilities and/or obligations related to this agreement and - unless or until they agree to and execute a final definitive and binding Purchase Agreement - both Allenergy, Inc. and Costaco, Inc. are mutually released from any and all liabilities and/or obligations pertaining to the Acquisition Agreement and their status remains the same as if such agreement had never existed.
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 (Pink Sheets: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: info@allenergy-online.com or visit www.allenergy-online.com.
Investor relations contact: Greg Leone 619-596-3374 - email gleone1@cox.net