SOURCE: Allied Energy Group, Inc.

January 23, 2007 09:00 ET

Allied Energy Group, Inc. Provides an Update of Its Oil and Gas Drilling and Production Operations in Oklahoma

BOWLING GREEN, KY -- (MARKET WIRE) -- January 23, 2007 -- Allied Energy Group, Inc. (PINKSHEETS: AGGI) provided the following update regarding its coalbed methane projects in Oklahoma:

Allied Energy Group, Inc., and its strategic industry partners, currently have a reported 15 wells in production, 2 wells going into production, 11 wells in completion and/or planned to be re-completed, and a projected 7-10 more wells tentatively scheduled to be drilled by 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.

The Company has successfully drilled and discovered gas in multiple coal seams for its 5-well program and is currently in completion for each of the 5 wells. Stimulation treatments have been performed on two of the five wells with treatments scheduled for the remaining wells in the next couple of weeks. The Company and its strategic partners have also been negotiating gas contracts to sell gas for these five wells located on its Schmidt leasehold.

The Company has finalized an agreement with Insight Energy Corporation to acquire an additional 220 +/- acre lease to rework and re-complete 5 existing wells and drill 3 new locations near the Caney River in Rogers County, Oklahoma.

The Company and its strategic industry partners have been making specific improvements to the field operations that include repairing equipment, modifying gas lines, and adding compressors to improve the general efficiency of the production operations.

"We continue to make reasonable progress in the field despite the recent inclement weather in Oklahoma," said Steve Stengell, Allied's Sr. Vice President Operations.

Based on this area's production history and our results to date, the Company expects to achieve gross well production of 1,700,000 cubic feet of natural gas per day from 38 wells in the very near future, which at current market prices approximates gross figures of $11,000 per day before line charges, royalties, taxes and operating expenses. No assurances can be given that such production will be achieved or revenues realized.

For the long-term, the Company and its industry partners have secured approximately 4,000 +/- acres currently under lease or to be leased in this area and has future plans to participate in the drilling of as many as 150-200 coalbed methane wells in this part of Oklahoma. Based on production in this area, gross production from 200 wells would be projected at 9,000,000 cubic feet of natural gas per day, which at current market prices approximates gross figures of $60,000 per day before line charges, royalties, taxes and operating expenses. Once again, although the company remains confident as to its future operations, no assurances can be given that such production will be achieved or revenues realized.

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. 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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