Allied Energy, Inc. announces the completion and production update for the Ragsdale #1 Well located in Cherokee County, Texas. The company commenced drilling operations of the Ragsdale #1 well on March 30, 2012. The well was directionally drilled to a total measured depth (TMD) of 10,674 feet and a total vertical depth (TVD) of 9,976 on April 26, 2012.

The well was tested and determined to be commercially productive in the Pettit formation, located within a 21 ft. net pay zone. The well was completed and put on line on August 16, 2012.

As of August 21, 2012, 2,878 mcf of gas and 140 barrels of oil have been sold, and an additional 80 barrels of oil remains in the holding tank. The average daily production for the most recent 5-day period is 454.6 mcfd of gas, 15.4 barrels of oil and 18.5 barrels of water. The well is free flowing into the gas transmission sales line, which has a static pressure of 300-370 psi.

Within the next 45 days, it is expected that a compressor will be installed, which will allow the well to produce with less backpressure, which is expected to result in higher levels of production at that time.