SANTA ANA, Calif., March 1, 2005 (PRIMEZONE) -- Allenergy Incorporated (Pink Sheets:ALRY) today announced it has entered into an agreement to acquire a substantial 152.59-acre oil and gas lease located in the SE 1/4 of Section 6-34S-17E in Montgomery County, Kansas. Situated in the Coffeyville-Cherryville field, it is known as the "Smith Lease."
The Smith lease has two existing wells completed in the Arbuckle formation. Both are currently shut-in and -- when brought online (during March 2005) -- they are expected to provide full return-on-investment within approximately two and one-half months. The Smith Lease also has an existing disposal well in service.
Also of note, this lease is situated on a very prolific structured Coal Seam gas formation -- which will also accommodate the drilling of two additional wells. Even more important -- and the primary reason for purchasing the Smith lease -- is that one drill site in the Northeast portion of this acreage is showing to be a very desirable "high-structured" Arbuckle formation well with the anticipation of increased daily production.
Also, as noted in the press release of February 7, 2005, the Fowler #11 well was completed as scheduled -- with initial production (24-hour IP) of 57 bbls -- and daily production leveling off at between 10 and 15 bbls (barrels of oil per day).
Recently, Allenergy mounted a concerted effort and drive to increase production. And as also noted in the February 7th release, over the last three months -- in Creek County alone -- production increased by 35% and operating costs were reduced by more than $7,500.00 a month (for a combined equivalent revenue of 200 barrels of oil per month).
At every level, both as a company and on an individual basis, Allenergy is fully committed to both maintaining an accelerated pace and to steadily improving production -- as well as to continued growth through acquisition.
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: info@allenergy-online.com or visit www.allenergy-online.com.