Allenergy reports oil production up 683% in first quarter
  by: OilOnline
  Wednesday, June 04, 2008

Allenergy, Inc. has increased its oil production 683% in the first quarter of 2008 compared to the same period in 2007, announced CEO Larry Sanford.

"Allenergy produced 5,688 barrels of oil during January, February and March of 2008," said Mr. Sanford. "This is nearly seven times the 833 barrels we produced in the first three months of 2007," Allenergy's CEO said.

"It is also very important to note that our average sales price per barrel more than doubled," he continued. "Allenergy averaged $84.31 per barrel in Q108 compared to $47.09 in Q107."

First quarter 2007 revenues were impacted by record-breaking cold weather and harsh snows, followed by the "100 year flood" that hit many parts of rural Montgomery and Chautauqua Counties in Kansas, where Allenergy holds leases on over 2,000 acres containing more than 50 producing wells.

"The Company's most recent oil sales in 2008 have been $99.70 per barrel," said Mr. Sanford. "Current prices for Eastern Kansas Crude Oil are now $116.50 per barrel, so we expect to break the $100 per barrel mark shortly," he added.

Contributing to Allenergy's production progress in 2008 have been moderate weather conditions in the Company's production sites, and operational decisions to maximize these factors. "We've proceeded with high-ground drilling in areas subject to heavy rains," Mr. Sanford said. "We had some high winds recently, but they were unrelated to last weekend's tornadoes in other parts of Kansas and Oklahoma."

"Barring any unusual weather conditions like those from 2007 during the balance of 2008, we should continue to improve on our production figures quarter by quarter," Allenergy's CEO concluded.

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