SOURCE: Allied Energy Group, Inc.

December 20, 2006 09:00 ET

Allied Energy Group, Inc. Provides an Update of Its Completion Operations in Knox and Laurel Counties, Kentucky

BOWLING GREEN, KY -- (MARKET WIRE) -- December 20, 2006 -- Allied Energy Group, Inc. (PINKSHEETS: AGGI), partnered with the Young Oil Corporation, announced today the following results for its three well program in Knox and Laurel Counties, Kentucky.

An acid "frac" stimulation has been successfully performed for both the Don Sullivan #8 and Dale Greer #1 wells located in Knox and Laurel Counties, Kentucky. Both wells should be in production in the next 7-10 days.

A sand "frac" stimulation is scheduled to be performed for the Clarence Bright #2 in the next week or two. "Based on the results of this type of treatment to the Waverly formation of a nearby well, we anticipate an initial production target rate of 100,000 cubic feet of natural gas per day," said Steve Stengell.

The Don Sullivan #8 has a reported 13 feet of fractured pay-zone in the Big Lime formation and was originally placed into production at a reported rate of 40,000 cubic feet of natural gas per day and was producing 20,000 cubic feet of natural gas per day prior to the treatment.

The Clarence Bright #2 was successfully drilled to an approximate depth of 1,650 feet and has a reported potentially productive pay-zone of 75 total feet in the Devonian Shale, Waverly, and Big Lime formations.

The Dale Greer #1 was successfully drilled to an approximate depth of 1,350 feet and had 12 feet of fractured potential pay-zone in the Big Lime formation.

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, 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. Production rates and lease operating expenses are impossible to accurately forecast. 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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