SOURCE: Allied Energy Group, Inc.

October 10, 2006 16:30 ET

Allied Energy Group, Inc. Announces Coalbed Methane Program in Rogers County, Oklahoma

BOWLING GREEN, KY -- (MARKET WIRE) -- October 10, 2006 -- Allied Energy Group, Inc. (PINKSHEETS: AGGI) has partnered with Mandalay Energy Resources, LLC of Denver, CO, to begin drilling the first of five coalbed methane wells in Rogers County, Oklahoma in the next 10 days.

A NYSE listed independent oil and gas company has reportedly had a 100% success rate on wells drilled in this area on more than 250 wells. As reported by the Oklahoma Geological Survey, there is a blanket Excello shale that covers the area which is largely responsible for the 300 plus coal bed methane wells drilled in this area with completion rates exceeding 98%. No assurances can be given that the coalbed methane wells in Rogers County, Oklahoma will have the same or similar success.

"I firmly believe that this could become a core area of operations for the company, given the ability for us to potentially produce gas from multiple coal seam formations in Rogers County," explained Steve Stengell, Sr. Vice President of Operations for the Allied Energy Group.

The operator of the wells in this project is Oklahoma-based KMV Consulting, Inc., a wholly owned subsidiary of Mammoth Energy Group, Inc. Allied Energy Group is also finalizing agreements with Mammoth to develop a nearby area more aggressively in the very near future.

"What we like about this area is that the wells are easy to drill because they are only 1,000 to 1,500 feet with the first pay zone anywhere from 300 to 350 feet," added Stengell. "Rig availability is good and the infrastructure is already in place to bring any gas that is discovered to market. Add in a high probability of success and you have the ingredients for an excellent project from which to grow production and cash flow."

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.

For more information: www.alliedenergy.com

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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