SOURCE: Allied Energy Group, Inc.

September 11, 2007 09:30 ET

Allied Energy Group, Inc. Prepares for Drilling Operations in Southern Rogers County

BOWLING GREEN, KY--(Marketwire - September 11, 2007) - Allied Energy Group, Inc. (PINKSHEETS: AGGI) announced today that it is prepared to begin drilling operations for its multiple-well coalbed methane (CBM) programs located near the Caney River in southern Rogers County, Oklahoma.

The company is currently scheduled to move a rig on location in the next 10-15 days to begin drilling the first of nine wells in this area. The first three drill-site locations have been allocated to its Caney River / Hickory Hollow 8-well program in which the company is drilling three new wells and re-completing 5 existing wells in various coal seam formations and the Mississippi Limestone. The remaining six locations are reserved for its South Rogers 6 six well program in this same area.

In addition to the potentially productive coal seam formations, the Mississippi Limestone has also proven to be productive in this area. Allied's Dana #1 well has on file at the Oklahoma Division of Oil and Gas a completion report in which the well initially tested at 250,000 cubic feet of gas per day from the Mississippi Limestone. The Dana #1 is currently awaiting connection to a gas line and should be placed in production in the next couple of months.

"We believe this is a tremendous opportunity to develop the existing coals seams and Mississippi Limestone for potentially both gas and oil production in one project area," said Steve Stengell.

This area is a southern extension of an area where the Company is executing a strategy of developing conservative projects with low drilling risks and very consistent returns. Allied is focused on the long-term plan of securing a total of up to 10,000 acres in Rogers County where the company is planning to develop its own gas pipeline and drill about 150-200 CBM wells over the next several years.

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 industry partners, well operators, geologists, petroleum engineers, 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 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. 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 inherent to the oil and gas industry.

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