Allied Energy Corporation Signs Partnership Agreement on Green Lease Project

CARROLLTON, Texas, March 07, 2024 (GLOBE NEWSWIRE) -- Allied Energy Corporation (OTC: AGYP) is delighted to announce the formalization of a Partnership Agreement with Petroloro LLC and ORO Energy LLC, collectively known as P&O Energy, to advance the Green Lease project.

Under this Partnership Agreement, P&O Energy will undertake the operation of the Project by initiating a comprehensive workover program on the M1 and X3 Wells. The objective of this workover is to optimize production from these Wells to their full potential. P&O Energy assumes sole responsibility for the expenses associated with the workover, and revenues generated will be equitably split on a 50/50 basis.

Additionally, the Partnership Agreement outlines the development of further Wells within the Project area. P&O Energy has committed to drilling two additional Wells in the year 2024. The initial drilling location has been identified, and pending the successful acquisition of permits, Allied Energy will transfer the Project land to P&O Energy. It is important to note that Allied Energy retains a 5% Overriding Royalty Interest (ORRI) in the Project lands and all newly drilled and producing Wells.

Petroloro LLC will conduct a comprehensive evaluation of all shut-in Wells within the Project to assess their potential for reactivation. Concurrently, ORO Energy LLC will spearhead drilling operations based on insights derived from the data obtained through each new Well drilled. P&O Energy is poised to commence operations on the Project upon obtaining the requisite permits, and once the access road infrastructure can facilitate the mobilization of workover and drilling rigs.

Looking ahead, the strategic vision involves the potential drilling of up to 8 additional Wells over the forthcoming years. The determination of the exact number of Wells will be guided by the assessments conducted by Petroloro LLC engineers, which will be influenced by drilling and production outcomes.

George Monteith, CEO of Allied Energy, expressed his enthusiasm about the partnership, stating: "This collaboration marks another strategic step forward for Allied, allowing us to focus more intently on expanding into the Bitcoin mining sector. With partners engaged in two of our three oil projects, we've unlocked crucial time resources essential for the development of Allied's Bitcoin mining initiatives from flare gas operations."