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Allenergy Acquires 'Turnkey' Kansas
Lease; Will Increase Daily Production Numbers
INDEPENDENCE, Kan., June 18, 2008 /PRNewswire-FirstCall
via COMTEX/ -- Allenergy, Inc. (Pink Sheets: ALRY), an
independent oil and gas producer focused on Southeastern
Kansas, has acquired the 160-acre Bane Lease located in
south central Chautauqua County, Kansas. The Bane Lease
has three existing wells completed in the Wayside
Formation that was shut in during a prior period of
declining oil prices. Accumulative production of these
three wells totaled 7,571 barrels of oil produced.
"This is a major next step in our business strategy of
acquiring more leaseholds to the west of our current
production leases," said Larry Sanford, President and
CEO of Allenergy. "Due to the geographical features of
this the Bane Lease, the result will be to obtain
greater daily production numbers to build to the
continuous oil inventory needed to achieve our goals."
According to Allenergy, the Bane lease is completely
equipped, including pumping units, electrical components
and all necessary hardware needed to be put back into
production immediately. The tank battery is fully intact
with an all-season road to accommodate the oil
marketers' transports for oil pickup.
"The Bane Lease was never fully drilled out because of
the declining oil prices at the time of being shut in.
Allenergy believes that four strategic locations need to
be drilled to maximize the potential oil recovery on
this prolific 160-acre lease. A drilling rig is
scheduled for the last week in June to drill the first
of those four wells. Because of the deeper Wayside
Formation encountered in this area versus the formation
in our more shallow leases to the East, we expect
excellent bottom hole pressure which would mean greater
oil recovery and longevity from each well," stated Mr.
Sanford.
"With our most recently-reported oil sales at $99.70 per
barrel, and the fact that we have acquired essentially a
turnkey operation, we expect the new Bane Lease to be a
significant addition to our growing number of producing
wells," concluded Allenergy's President.
About Allenergy: Allenergy, Inc. (Pink Sheets: ALRY -
News) is an independent energy company strategically
focused on Southeastern Kansas where it currently holds
approximately 4,740 acres of leased land with more than
150 oil and gas wells on its producing properties.
For more information about the Company, please visit
http://www.allenergyinc.com
Note: Certain statements in this news release may
contain "forward looking" information within the meaning
of rule 175 under the Securities Act of 1933 and Rule
3b-6 under the Securities Act of 1934 and are subject to
the safe harbor created by those rules. All statements,
other than statements of fact, included in this release,
may include forward-looking statements that involve
risks and uncertainties. There can be no assurance that
such statements will be accurate and actual results and
future events could differ materially from those
anticipated in such statements.
Contacts: Larry Sanford
Lsanford2@aol.com
Allenergy, Inc.: 620/331-9992
E&E Communications Paul Knopick, (949) 707-5365
pknopick@eandecommunications.com
SOURCE Allenergy, Inc.
URL: http://www.allenergyinc.com
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Copyright (C) 2008 PR Newswire. All rights reserved
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