SOURCE: Allied Energy, Inc.

October 20, 2008 12:04 ET

Allied Energy Prepares for More Drilling Operations to Begin in Pawnee County, Oklahoma

BOWLING GREEN, KY--(Marketwire - October 20, 2008) - Allied Energy, Inc. (PINKSHEETS: AGGI) provided the following update regarding its plans to drill two more wells in Pawnee County, Oklahoma.

Drill-site locations for the Foust #9-9 and Foust #10-9 have been excavated, built and are ready to be drilled in the very near future. The Company has secured a drilling rig to perform the drilling.

"We are tentatively scheduled to begin drilling the first of these two locations very soon," said Steve Stengell, Allied's President.

The Foust #7-9 and Foust #8-9 wells are each in the final stage of completion and should be in production very soon. Based on historical production information for the area and the evaluations and recommendations made by field experts and geologists involved with the project, the Company believes that a 30-35 BOE (barrels of oil equivalent) for each well is a reasonable daily production rate estimate. However, the Company cannot make any assurances as to the production rates for this project.

Although the Company is very confident in the careful planning and development of its projects, there can be no assurances made that commercial oil and or gas will be established for any given well.

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.

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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, reliance upon third party geological reports and recommendations from experts, 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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