Yeah, and here's another reason I bought into this company last year.
1,000,000 * $106 !!
May 2, 2007 - Allenergy Says One Million Recoverable Barrels of Oil Realistic Assessment
COFFEYVILLE, Kan., May 2, 2007 /PRNewswire-FirstCall via COMTEX/ -- Allenergy, Inc. (OTC: ALRY), with a 17-year history in the oil and gas industry and current involvement in the multi-billion dollar natural gas fields in Kansas and Oklahoma, is pleased to disclose to investors a geology report that was obtained before the purchase of the AE-4 Project on April 19, 2006. We held this report close to Company management until we had ample time to procure surrounding acreage around the Moore Lease.
The report describes four producing formations on and adjacent to the Ball and to the Dark Treasures properties that was purchased January 24, 2007. The Redd sand occurring about 600' ranges from 5' to 50' thick and is the known oil producer on this lease. The Redd sand is a longer-lasting producer than the Weiser, producing less water and more gas. The Redd sand is a point-bar type deposit and the oil usually lies in pools or pods as opposed to shoestring-type deposits. As the wells are drilled to the west and rising up on the hill (Ball Lease) more and more gas will be encountered. The Redd sand is mostly a gas driven sand and the Weiser is water driven and contains less amount of gas. The Redd sand should yield 30 BOPD and the Weiser sand around 25 BOPD. It is not unrealistic to anticipate producing 200 mfcpd.
The Mississippi occurring around 1600' is a limestone with the top 10', a weathered, porus chert, called "chat". This chat is the gas-bearing zone and long-lasting zone produced naturally or treated lightly with acid. A gas well in the Mississippi about 2000' west of the Moore open-flow tested 6 mmcf with a shut-in pressure of 721 PSI.
Arbuckle Dol which occurs around 1850' to 1900' is a dolomite that contains thin lenses of excellent porosity and permeability in the form of vugs or cavities in the top 10' often filled with oil and gas.
A well 1320' west of the Moore property encountered oil and 3.65 mmcfpd (4-point tested). It is believed that more oil lies structurally down off this gas and to the east (Moore Lease). Arbuckle oil is the most pursued as it lies in pools that are constantly being recharged and long-lasting.
Taking all these facts into consideration of the four producing zones, one million recoverable barrels of oil is quite realistic. The shallow depth of the oil production plus the large barrel per acre foot coupled with the factual gas production in the area makes the Moore and surrounding area a very compelling project.
The surrounding area mentioned by the geologist consists of the Company's 480-acre AE-4, the 960 acre Dark Treasures and the pending 600 acre Bayless "B" properties.
The geologist didn't research the Layton formation. On April 11th, the Company perforated the Moore TM-1 and discovered a free flowing dry virgin pressure gas well that is maintaining 105 PSI. On Monday Allenergy lowered the pressure from 110 PSI to 105 PSI and gained an additional 10,000 cubic ft. "The Company will slowly let back pressure off in stages to let the well tell us its potential. Every indication is upward and could be unprecedented at this well depth. We have analyzed the logs of three wells on the Ball Lease that have identical readings as the TM-1 except they are structurally higher, which is very encouraging."
"We are just beginning to reap benefits of this year long plan and all indications point to very exciting plateaus for our shareholders and the Company," Mr. Sanford concluded.
About Allenergy: Allenergy, Inc. (OTC: ALRY) is strategically focused on areas of Kansas and Oklahoma believed to contain more than 1.5 trillion cubic feet of natural gas and helium at shallow depths. The Company currently holds approximately 5,500 acres of leased land with over 100 oil and gas wells on its producing properties.
AI
