DES MOINES, IA -- (Marketwire) -- 06/20/12 -- AllEnergy Corporation (OTCQB: AFSE) (OTCBB: AFSE) (www.allenergyco.com), a growth-oriented international energy company, today reported it contracted the purchase of the Bell Lease located near Abilene, Taylor County, Texas. The purchase contains 40 acres with a producing oil well #1, rework well #2, and an additional drill site for well #3. In addition to the lease the Company acquired consent to inject salt water to a nearby salt water disposal well.
The Bell Lease is located adjacent to the Reddin unit. The Reddin has been in production for 70 years and has produced over 6 million barrels of oil. The production is very long-term. AllEnergy has current annual production of 3600 barrels on well #1 before improvements. We will rework well #2 and drill a new 3rd well on the Bell lease next quarter.
Dean Sukowatey, President and CEO of AllEnergy Corporation, stated, "We are very pleased with the Bell acquisition. The reservoir is an exceptional formation that is porous and highly permeable limestone. AllEnergy is evaluating several addition lease acquisitions in this field, reworking existing wells and drilling additional new wells on acquired leases."
Mr. Sukowatey commented, "The Company's business model is to grow oil production through wells that can be easily and economically reworked into additional production very quickly, providing immediate and potentially large monthly cash flow. Well #1 now produces annual revenue of $300,000. We estimate our revenue to exceed $3,000,000 from the Bell Lease after rework and drilling to multiple pay zones in the field."
About AllEnergy Corporation
AllEnergy, an international energy company, is engaged in the acquisition, development and production of oil and natural gas. AllEnergy acquires and develops oil and gas leases which have "proven but undeveloped reserves" at the time of acquisition. These properties are not strategic to large exploration-oriented oil and gas companies. This strategy allows AllEnergy to develop and produce oil and natural gas with tremendously decreased risk, cost and time involved in traditional exploration.