The Howard #2H well was drilled to a total measured depth of approximately 18,000′ along existing trends.

Howard #2H is a horizontal lateral that encountered a series of natural gas bearing intervals while drilling through the primary objective Buda/Georgetown Limestone Formation.

On 12 December 2010, the well tested at a rate of approximately 4,000mcfgd with associated condensate.

The company is currently constructing production facilities, gas flow lines, processing facilities and other necessary surface equipment in preparation to begin its ongoing production operations.

Allied Energy recently signed and executed a connection agreement with Atmos Energy in order to sell gas in Grimes County.

Allied Energy is primarily engaged in the exploration, development and production of oil and natural gas in the continental US.