SOURCE: Allied Energy Group, Inc.

November 30, 2006 09:30 ET

Allied Energy Group, Inc. Announces Its Completion of Drilling Operations for Its Five-Well Coalbed Methane Project in Oklahoma

BOWLING GREEN, KY -- (MARKET WIRE) -- November 30, 2006 --Allied Energy Group, Inc. (PINKSHEETS: AGGI) provided the following report regarding its five-well coalbed methane drilling program and other developments in and in close proximity to Rogers County, Oklahoma.

Allied Energy Group, Inc. has successfully completed drilling operations for its five-well program in Rogers County, Oklahoma.

The Schmidt #1, #2, #3, #4, and #5 wells have been drilled with each well encountering gas during testing. The Schmidt #1, #3, #3b, #4, and #5 wells had indications of gas in multiple coal seam formations and are currently awaiting completion or already in completion for the production of natural gas. The Schmidt #2 encountered gas in only one seam and the Schmidt #3b was an already drilled existing well on the lease requiring a re-completion attempt to produce from the Mulkey and Rowe coal seam formations. The Schmidt #2 is scheduled to become a brine water disposal well for the Schmidt lease.

"Although the Schmidt #2 could very well become a good gas producer from only one coal seam, the Company is confident that the well's conversion to a brine water disposal well will make a positive cash flow contribution to this project for the long-term," said Steve Stengell, Sr. Vice President Operations. "Although we cannot be certain, the re-completion of the Schmidt #3b should provide us with 5 producers at this leasehold," added Stengell.

Allied Energy Group, Inc. currently has 15 wells in production, 8 wells in completion, and 5-7 more wells tentatively scheduled to be drilled this year or early 2007 in Rogers County with plans to potentially drill and develop an additional 20-25 coalbed methane wells in this same area beginning in 2007. 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 relies upon its strategic industry partners, 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 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.

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