SANTA ANA, Calif., June 14, 2004 (PRIMEZONE) -- Allenergy Incorporated (Pink Sheets:ALRY) today announced it is preparing to drill the Smith #FA-1 well on the recently acquired 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 #FA-1 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.
This well has been fully funded and above ground production equipment has been purchased. Allenergy has applied for an Operators License from the State of Kansas (Kansas Corporation Commission) and it is currently in the process of being issued. Upon receipt of the Operators License, Allenergy will submit an Intent to Drill form. The Smith #FA-1 well is also on the driller's schedule, and should commence drilling within the next three weeks -- weather permitting.
Allenergy President, Larry L. Sanford, states, "We expect great success with the FA-1 well...and this is just one milestone we can receive from the Smith lease. We are also in negotiations on several additional leases in Montgomery County and the surrounding area."
The Kelly Lease -- a 430-acre gas lease in Okmulgee County located in northeastern Oklahoma acquired in mid-2004 -- is beginning to meet original projections and expectations. Allenergy has also finalized its MIT certification for the disposal well.
"We encountered some downhole problems that we were initially unaware of," Sanford adds, "but through innovations from our Production Superintendent, we saved additional time and money."
Allenergy notes current gas production exceeds that which was produced prior to the acquisition of the Kelly Lease -- and the company still has three additional wells to bring online and is currently evaluating activation planning.
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 its 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 .