SOURCE: Allied Energy, Inc.

August 15, 2008 15:30 ET

Allied Energy Continues to Build Its Gas Sales Infrastructure in Rogers County, Oklahoma

BOWLING GREEN, KY--(Marketwire - August 15, 2008) - Allied Energy, Inc. (PINKSHEETS: AGGI) provided the following report as it relates to building the Company's natural gas transmission system "sales line" in Rogers County, Oklahoma.

The Company has trenched, laid and buried more than 3,800 feet of the total 8,500 +/- feet of gas line needed to connect the Company's Hickory Hollow and Cherokee leaseholds and begin selling gas from its southern fields in Rogers County, Oklahoma.

"Ultimately, in the future, we plan to potentially have as many as 65 wells contributing gas and/or oil from our two southern fields combined," said Allied's President, Steve Stengell. "These include wells recently drilled by Allied, existing producers and previously shut-in wells that have been or will be reworked/re-completed for production in the future."

For the short-term (next six to nine months of production coming online), the Company plans to equip the Cherokee production facility (compressor station, gas tap, gas line etc.) to handle in the range of 1.5 million cubic feet of natural gas per day. Right now, the Company believes that 1.5 million cubic feet of gas per day is a reasonable future target estimate with an additional target estimate of 50 - 100 barrels of oil per day in the future coming from the existing oil producers, wells currently in completion and wells to be drilled this year and next in its southern fields. In total (using $115 per barrel of oil and $8 per thousand cubic feet of gas prices), this equates to an estimated gas and oil equivalent of 2.2 million - 2.9 million cubic feet of gas per day ($17,600 - 23,200 in gross daily revenue to Allied, its partners, landowners, etc.). This gross revenue does not reflect lease operating expenses, gas transportation fees and other associated costs.

It is important to understand that these are targeted oil and natural gas production estimates and projections only. There can be no assurance made by the Company that these production levels will be achieved. 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 has approximately 6,000 acres under lease, more than 60 wells under development and 18 additional wells to be drilled while continuing to build its own operating company, gas line transmission system and sales infrastructure in Rogers County.

Allied Operating, LLC, a majority owned subsidiary of Allied Energy, Inc., will serve as the operator of these properties in the future.

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, third party petroleum geologists, third party engineers, field consultants, land professionals 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. Inclement weather, right-of-way and landowner problems can also create significant delays in previously projected timelines for work in the field. 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. Gross revenue production occurs before the deduction of landowner royalties, lease operating expenses, gas transportation fees and other costs. 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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