SOURCE: Allied Energy Group, Inc.

November 07, 2006 16:01 ET

Allied Energy Group, Inc. Announces 100% Successful Completion Rate for Its Coalbed Methane Developments

BOWLING GREEN, KY -- (MARKET WIRE) -- November 7, 2006 -- Allied Energy Group, Inc. (PINKSHEETS: AGGI) provided the following report regarding its coalbed methane developments in Rogers County, Oklahoma.

Allied Energy Group, Inc. continues its 100% coalbed methane completion rate by completing three more coalbed methane wells for its joint venture project with the Mammoth Energy Group that lies to the east of its five-well program in Rogers County, Oklahoma. Two of these wells are on-line and the third well is being equipped for oil and gas production. Once these three wells are on-line, the Company will have a total of 15 producing gas wells with production averaging just under 700,000 cubic feet of natural gas per day.

In the next several weeks, although there can be no guarantees, the Company anticipates having 15 wells in production, 3 wells in completion, and 10-12 more wells scheduled to be drilled this year in Rogers County.

"Our immediate goal is to establish production from 28 wells before year end," said Steve Stengell, Allied's Sr. Vice President Operations. "Based on this area's production history and our results to date, we expect to achieve gross well production of 1,400,000 cubic feet of natural gas per day from 28 wells before the new year," he added, "which at current market prices approximates $10,000 per day before line charges, royalties, taxes and operating expenses."

For the long term, the Company has future plans to participate in the drilling of 150-200 coalbed methane wells in this area of Oklahoma.

About Allied Energy Group

Allied Energy Group, 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 employs geologists, petroleum engineers, seismic specialists, and financial analysts whose combined industry experience is essential to the success of each project. Allied Energy Group'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, 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'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.

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