SOURCE: Allied Energy, Inc.

July 08, 2008 09:30 ET

Allied Energy Participates in Colorado DJ Basin Prospect

BOWLING GREEN, KY--(Marketwire - July 8, 2008) - Allied Energy, Inc. (PINKSHEETS: AGGI) announced today that the Company plans to acquire 60% working interest in the drilling of a "Luster Field" immediate off-set to the Bicek #1 well located in the Denver-Julesburg (DJ) Basin of Morgan County, Colorado.

In the 1950s, the Luster field was discovered by Cramer Oil. The President, Joseph Cramer, is a highly distinguished geologist who has reportedly discovered over an estimated 20 million barrels of oil in the Rocky Mountain Region. One of his areas of expertise is working with J-Sand formations in the Denver-Julesburg Basin (DJ Basin), which is the predominant geological structure in Northern Colorado. In fact, it is reported that Mr. Cramer may have drilled more J-Sand wells than any other independent oil company from the 1950s through the 1970s.

Mr. Cramer is now at least semi-retired from the oil and gas industry and has recently made this prospect information available to Allied Energy, Inc. through its industry partners.

The Cramer Oil Company completed the Bicek #1 for production in the early 1960s. The Bicek #1 initially produced a reported 125 barrels of crude oil per day only to have the well's casing to collapse after a mere 40 days of production. Allied and its industry partners plan to drill an immediate step-off well only 50-100 feet from the original Bicek #1 well-bore.

The Cramer Oil Company also completed for production the nearby Bicek #2 well that initially produced at a reported initial rate of 274 barrels of crude oil per day and has produced over 100,000 barrels of oil ($14 million at today's prices) over a 12-year period. The Company can make no assurances that these same production levels will be achieved in the future.

"In addition to our Rogers County, Oklahoma operations, Allied is now involved in projects located in Texas, Ohio and Colorado," said Allied's Vice President of Business Development, Steve Stengell. "We plan to begin drilling operations for the Colorado project no later than the fourth quarter 2008," added Stengell.

About Allied Energy

Allied Energy, 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'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.

The Company has approximately 6,000 acres under lease, more than 60 wells under development and continues to build its own gas line infrastructure system in Rogers County, Oklahoma to maximize its price for gas at the wellhead. Allied and its partners are also participating in oil and gas projects located in Fisher County, Texas and Washington/Athens Counties, Ohio.

For more information: www.alliedenergy.com

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. It is impossible to accurately forecast or predict oil and/or natural gas production and reserves. The projections herein are only estimates. The Company can make no assurance that commercial production will be obtained, and if obtained, in such quantities to make the project commercial. The Company may have varying degrees of working and net revenue 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. The Company's geological and geophysical evaluations of its prospects are often times based on recommendations from regional experts, geologists and other professionals. However, Allied cannot make any assurance that the recommendations of and/or information received from these professionals are completely valid and will result in the commercial production of oil and/or gas.

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