SOURCE: Allied Energy, Inc.

October 13, 2008 09:30 ET

Allied Energy Begins Production Operations in Southeast Ohio

BOWLING GREEN, KY--(Marketwire - October 13, 2008) - Allied Energy, Inc. (PINKSHEETS: AGGI) announced today that it has commenced production operations for its developments in Washington and/or Athens Counties, Ohio.

The Humphrey #1 (first well) has been completed for production and turned into the line producing on the 10th of October. Although no assurances can be made, we believe this well could produce in the 70,000 cubic feet of gas per day range, which equates to monthly gross projected revenue exceeding $13,000 per month from one well.

The Pannel #1, Kidder #1, Bailey #1, Ladd #1 and Sillaman #1 each have been drilled to 4,000 +/- feet and encountered gas in multiple formations including various shale sections and the Oriskany Sandstone. The Pannel #1 is the first well scheduled for completion.

The Company now has plans to drill two (2) additional well locations for a total of eight (8) wells in Washington and/or Athens Counties, Ohio.

"We are definitely pleased with the fact that the Humphrey #1 was drilled, completed and turned into the gas sales line in about six (6) weeks," added Stengell.

About Allied Energy

Allied Energy, Inc. (PINKSHEETS: AGGI) is an independent energy development firm primarily engaged in the exploration, development, and production of oil and natural gas in the continental United States. The company relies upon its industry partners, well operators, geologists, petroleum engineers, and financial analysts whose combined industry experience is essential to the success of each project. Allied Energy's strategic focus is the development of oil and natural gas reserves. As the fuel of choice to meet the growing demand for a clean-burning domestically produced fuel, the company firmly believes its natural gas exploration strategy should provide substantial growth to the company for the years to come.

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Certain statements in this release and the attached corporate profile that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by the use of words such as "anticipate," "believe," "expect," "future," "may," "will," "would," "should," "plan," "projected," "intend," and similar expressions. Such forward-looking statements involve known and unknown risks including but not limited to geological and geophysical risks inherent to the oil and gas industry, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements. The Company may have varying degrees of working interest ownership in each well and/or prospect. Thus, gross revenue projections may not be equal to what is distributed net to the Company. The Company's future operating results are dependent upon many factors, including but not limited to the Company's ability to: (i) obtain sufficient capital or a strategic business arrangement to fund its expansion plans; (ii) build the management and human resources and infrastructure necessary to support the growth of its business; (iii) competitive factors and developments beyond the Company's control; and (iv) other risk factors inherent to the oil and gas industry.

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