Allied Resources, Inc. (OTCBB: ALOD) (“Allied”) today announced the acquisition of a non-operated 5.4375% working interest and various net revenue interests in ten properties located in Sections 24, 41, 42 and 46 of the CCSD & RGNG RR Co. Survey, Edwards County, Texas from Rischco Energy, Inc. The acquisition includes an interest in the pipeline gathering system connected to five of the wells. The properties are operated by Marshall & Winston, Inc. of Midland, Texas and currently produce 16 STBO and 37,320 MCFG per month in the Frances Hill (Penn Lower) field from the Canyon Sands formation. The acquisition is effective August 1, 2007.
Allied’s expansion into the Permian Basin is the continuation of an aggressive acquisition program designed to increase oil and gas reserves through the purchase of non-operated interests in oil and gas producing properties within the United States. The defined criteria for selecting acquisitions includes short-term return on investment, long-term growth in cash flows, and additional development potential.
Allied is an independent oil and natural gas producer involved in the exploration, development, production and sale of oil and gas derived from properties located in Calhoun and Ritchie Counties, West Virginia and Goliad and Edwards Counties, Texas. Allied currently realizes production from a total of 156 wells, with a working interest of 5% to 75%, all of which are maintained and managed by local operators.
FORWARD-LOOKING STATEMENTS
A number of statements contained in this press release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended. A safe-harbor provision may not be applicable to the forward-looking statements made in this press release because of certain exclusions under Section 27A (b). These forward-looking statements involve a number of risks and uncertainties including the recovery of oil and gas resources, prices for oil and natural gas, competitive market conditions, and the ability to secure sufficient sources of financing as required. The actual results Allied may achieve could differ materially from any forward-looking statements due to such risks and uncertainties. Allied encourages the public to read the information provided here in conjunction with its most recent filings on Form 10-KSB and Form 10-QSB. Allied's public filings may be viewed at www.sec.gov.
Contacts:
Ruairidh Campbell,
801-582-9609
Fax: 801-582-9629
ruairidhcampbell@msn.com
