SOURCE: Allied Energy Group, Inc.

October 24, 2006 16:01 ET

Allied Energy Group, Inc. Announces the Continued Drilling Success for Its Five-Well Coalbed Methane Project in Oklahoma

BOWLING GREEN, KY -- (MARKET WIRE) -- October 24, 2006 -- Allied Energy Group, Inc. (PINKSHEETS: AGGI) announced the following update regarding its five-well coalbed methane project located in Rogers County, Oklahoma.

The third well (Schmidt #1) was successfully drilled to a measured total depth of 1,180 +/- vertical feet and apparently encountered an estimated 9-17 total feet of potentially productive interval "natural gas pay-zone" in the Croweberg, Rowe, and Mulkey coal seam formations.

"We are very excited about the production potential for all three wells," said Steve Stengell, Sr. Vice President of the Allied Energy Group, Inc. He added, "We are tentatively scheduled to begin drilling the last two wells in the immediate future."

The three wells were drilled in the following order: Schmidt #4, Schmidt #2, and Schmidt #1.

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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