The company said though the well in Grimes County tested at a flow rate of 4,011 mcf of gas/day (MCFGD) on a 20/64″ choke with associated condensate in May this year, the well has been shut-in awaiting pipeline connection since then.
The company claims that the well initially will be able to produce approximately 2,000 MCFGD and potentially higher in the future. The company is currently underway constructing the production facilities and the gas flow lines, as well as preparing the project for ongoing producing operations.
Steve Stengell, president of Allied Energy, said: “We are pleased to have the opportunity to connect our natural gas system to the Atmos Energy line in Grimes County. Atmos Energy is the largest distributor of natural gas in our community, and we look forward to an ongoing and productive relationship with Atmos.”
Atmos Pipeline owns a direct 5% working interest in the Allied Howard #1H well location, and it manages investor partnerships and joint ventures that own an aggregate approximate 80% working interest in the well location.
The company currently owns an 88% working interest in the remainder of the entire approximate 8,000 acre lease on which the Allied Howard #1H is located.
Meanwhile, Allied Energy has contracted its majority-owned subsidiary Allied Gas Transmission, which is involved in the construction of natural gas transmission systems, to perform the construction and connection of Allied Energy’s natural gas flowlines to the Atmos Energy pipeline.
