SOURCE: Allied Energy, Inc.

May 27, 2011 19:44 ET

Allied Energy, Inc.: Additional Information Relating to 2010 Fiscal Year Results

BOWLING GREEN, KY--(Marketwire - May 27, 2011) - Allied Energy, Inc. (PINKSHEETS: AGGI) today announced additional information relating to the 2010 fiscal year results reported on April 20, 2011. The Company's financial statements are available at www.alliedenergy.com and www.otcmarkets.com.

Allied Energy, Inc. (the "Company") serves as the managing general partner of a number of oil and natural gas development programs. The investing partners in these partnerships provide the funds required for the drilling programs sponsored by the Company, and those investors in turn receive any proceeds from the partnership.

With respect to the Allied Howard #1H well and the Allied Howard #2H well, both of which are located in Grimes County, Texas, the Company currently owns working interests of 4.145% and 3.391% respectively.

The Company contemplates that during the third quarter of 2011, a rig will be moved onto the Allied Howard #3H location to begin drilling operations.

For the 12 months ended December 31, 2010, the Company had a net loss of $0.306 million as compared with a profit of $0.284 million for the 12 months ended December 31, 2009. This decline in earnings is attributed to significant cost overruns and higher than expected drilling and operating expenses. In addition, our Selling, General & Administrative expenses were considerably higher than expected. We are now focused on our bottom line results for fiscal 2011 by cutting our expenses, adjusting our turnkey pricing to more effectively cover the costs to be incurred, carefully reviewing our investments and concentrating on our core business; however, we expect that, at the least, 2011 net earnings will continue to decline as a consequence of our necessary restructuring.

Scott Harris, Chief Executive Officer and President, stated that changes that are planned to be made to the Company's ongoing business model will result in oil and gas production revenues becoming a higher percentage of the Company's overall revenues by fiscal 2013 or sooner.

About Allied Energy:

Allied Energy, Inc. (PINKSHEETS: AGGI) is engaged in the oil and gas business, with operations located primarily in Texas, Oklahoma, Ohio and Colorado. The Company sponsors oil & gas drilling partnerships through which it raises funds needed for the drilling of oil & gas wells.

The Company owns Allied Holdings, LLC; and in addition, owns, Allied Operating, LLC and Allied Operating, Texas, LLC, two operating companies that are used to manage the drilling, development and operations of the oil & gas drilling partnerships sponsored by the Company. The Company is also majority owner of Allied Gas Transmission, Inc.

The Company's ultimate strategic focus is on the development of oil and natural gas production and reserves. The Company believes that its oil and natural gas development strategy will provide growth to the Company in the future. For more information: www.alliedenergy.com

Forward-Looking and Continuing Statements:

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, price of oil and natural gas, state of the economy, industry regulation, reliance upon expert recommendations and opinions, 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 drilling 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 including but not limited to the strength of the overall economy; and (iv) other risk factors inherent to the oil and gas industry.

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