December 03, 2008 09:30 ET

Allied Energy Announces Plans to Acquire Additional Working Interests in Pawnee County, Oklahoma

BOWLING GREEN, KY--(Marketwire - December 3, 2008) - Allied Energy, Inc. (PINKSHEETS: AGGI) provided the following update regarding its plans to acquire additional interests in Pawnee County, Oklahoma.

The Company is currently finalizing plans to acquire an additional 20% working interest in the Foust #7-9, #8-9, #9-9 and #10-9 well sites and the lease located in Pawnee County.

The Company believes there exists production potential in this area from a multitude of formations including, but not limited to, the Bartlesville Sand, Prue Sand, Layton Sand, Misener Sand, Red Fork Sand and other potentially productive formations.

The Foust #7-9 is awaiting a connection to the gas line and should be in production very soon. The Foust #7-9, having multiple sandstone formations to contribute gas or oil, has demonstrated very promising gas and/or oil production potential and may be the very best well drilled in this area. Although no assurance can be made, the Foust #7-9 demonstrated oil and gas return pressures that blew the swabbing unit out of the hole and over the service rig during completion (see the attached video).

The Company believes that a 35-50 BOE (barrels of oil equivalent) for the Foust #7-9 alone is a reasonable initial daily production target rate estimate based on all of the information to date. 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 or group of wells.

While the electric log interpretation and other post-drilling data for the #8-9 was initially impressive, the #8-9 did not respond favorably to completion and needs more evaluation before it can be deemed commercial for production. At least for the short-term, Allied, as the Managing General Partner of various partnerships, has elected to replace this program well with the nearby #8-9A which has recently been re-completed for production in the Red Fork sand in an effort to add production to the initial 2-well program.

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 and has decided to re-schedule for when the Company completes its final legal review of title for leases in this area. This is expected to happen in the next several weeks. "We are prepared to begin drilling the Foust #9-9 in the very near future," said Steve Stengell, Allied's President.

Allied Operating, LLC, a wholly owned subsidiary of Allied Energy, will serve as the future operator of these properties. Allied Operating, LLC currently supervises, the drilling, completion and/or well operations of more than 70 wells for Allied Energy located on 6,000 +/- acres in Rogers County, Oklahoma.

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.

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 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 and field personnel, 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. Any projections made by the Company are only estimates. No assurances can be made that commercial oil and/or gas production can and/or will be established for any given project. 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.