SOURCE: Allied Energy, Inc.

December 14, 2010 12:53 ET

Allied Energy Provides Results for Its Second Horizontal Well in the Giddings Field

BOWLING GREEN, KY--(Marketwire - December 14, 2010) -  Allied Energy, Inc. (PINKSHEETS: AGGI) announced today that the Company has successfully drilled and tested its second horizontal well in the historic Giddings Field of Grimes County, Texas.

The Allied Operating Howard #2H was drilled to a total measured depth of approximately 18,000' along existing trends. The Howard #2H is a horizontal lateral that encountered a series of natural gas bearing intervals while drilling through the primary objective Buda / Georgetown Limestone Formation.

On December 12, 2010, the Howard #2H tested at a rate of approximately 4,000 MCFGD with associated condensate. It is anticipated that the well will initially produce at a sales of ~2,000 MCFGD equivalent and potentially higher in the future. The Company is currently constructing production facilities, gas flow lines, processing facilities and other necessary surface equipment in preparation to begin its ongoing production operations.

On May 15, 2010, Allied first horizontal location in Grimes County, the Howard #1H, tested at a flowing rate of 4,011 MCFGD with associated condensate.

"We are extremely pleased with the results we have seen thus far for both the Allied Howard #1H and #2H projects and will closely monitor their ongoing production characteristics," said Steve Stengell, Allied's President. "Allied plans to continue to pursue and develop additional horizontal opportunities in Central-East Texas and implement the newer technological advances that relate to horizontal drilling and production," added Stengell.

Allied Energy, Inc. contracted Allied Gas Transmission, a majority owned subsidiary of Allied, to trench, lay line and connect the Howard #1H to the local gas market. Allied Energy, Inc. recently signed and executed a connection agreement with Atmos Energy, Inc. in order to sell gas in Grimes County, Texas.

Allied Operating Texas, LLC, a wholly owned subsidiary, was formed in 2009 for the purposes of operating and developing its vertical and horizontal drilling programs in Central-East Texas.

Allied Operating Texas, LLC recently moved Pioneer Rig #33 on location to begin drilling the Company's first horizontal well in Leon County, Texas to test the Woodbine formation.

No assurances can be made as it relates to present or future production rates or estimated reserves for any given project or the company as a whole. Tremendous risks and uncertainty are associated with oil and gas drilling, completion, development and production operations. It is impossible to estimate future rates and/or declines in production operations for oil, condensate and natural gas.

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 operating companies and other subsidiaries, strategic industry partners, petroleum geologists, engineers, subcontractors and support personnel 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 production and reserves. The Company firmly believes its oil and natural gas exploration strategy will provide substantial growth to the Company for years to come. For more information:

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 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 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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