Natural Gas

Based in Bowling Green, Ky., Allied Energy Inc. is continuing to beef up its infrastructure. The latest move is a new gas transmission sales line in Rogers County, Oklahoma.

The company has already prepared 3,800 feet of the total 8,500-foot gas line that is needed to connect Allied Energy’s Hickory Hollow and Cherokee leaseholds and begin selling gas from its southern fields in Rogers County.

“Ultimately, in the future, we plan to potentially have as many as 65 wells contributing  gas and or oil from our tw southern fields combined. These include wells drilled by Allied, existing producers and previously shut-in wells that have been or will be reworked or recompleted for production in the future,” says Allied president Steven Stengell.

Stengell says that for the short-term–the next six to nine months of production coming online–the company plans to equip the Cherokee production facility to up to 1.5 million cubic feet of gas per day. Right now, the company believes that 1.5 million cubic feet of gas per day is a reasonable future target estimate with an additional target estimate of 50 - 100 barrels of oil per day in the future coming from the existing oil producers, wells currently in completion and wells to be drilled this year and next in its southern fields.

The company has about 6,000 acres under lease, more than 60 wells under development and 18 wells yet to be drilled and its gas line transmission system and sales line in Rogers County.

Stay tuned. More to come. Expect more projects like this from a lot of other companies as everyone races to connect their supplies and reserves to lines to take the gas to market.

–John A. Sullivan, News Editor, Oil and Gas Investor, www.OilandGasInvestor.com, jsullivan@hartenergy.com

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