Allied Energy Provides an Update for Its Projects in Southeast Ohio

• Press Release
• Source: Allied Energy, Inc.
• On 9:30 am EST, Monday January 5, 2009

BOWLING GREEN, KY--(MARKET WIRE)--Jan 5, 2009 -- Allied Energy, Inc. (Other OTC:AGGI.PK - News) provided the following report regarding its projects in Washington and/or Athens Counties, Ohio.

Related Quotes

Symbol	Price	Change
AGGI.PK	0.09	0.00

{"s" : "aggi.pk","k" : "c10,l10,p20,t10","o" : "","j" : ""}

Southeast Ohio Development (4-well program in southeast Ohio):

The Humphrey #1, Pannel #1, Kidder #1 and Bailey #1 each have been drilled to 4,000 +/- feet and encountered indications of gas in multiple formations including various shale sections and the Oriskany Sandstone.

The Humphrey #1 was completed for production and turned into the line producing on the 10th of October. The well has recently been producing in the estimated range of 25,000 - 30,000 cubic feet of gas equivalent while returning fluid.

The Pannel #1 and Bailey #1 have also been completed for production. The Pannel #1 is producing at an estimated rate of 45,000 cubic feet of gas per day while returning fluid. It is anticipated that the Pannel #1 should produce at a higher rate once all of the frac fluid is returned. The Kidder is currently in the completion process.

Based on log interpretation, gas pressure/shows during completion and recommendations from field experts, the estimated target rate for the Bailey #1 is 130,000 cubic feet of gas per day.

Bush Spectrum 7 (2 wells in SE Ohio, 1 well in Fisher County, Texas):

The Sillaman #1 and Ladd #1 have each been drilled to a total depth of 4,000 +/- feet and encountered indications of gas in several formations including the Oriskany Sandstone and various members of the Ohio Shale. Both wells are tentatively scheduled for completion this month. Drilling is also scheduled to begin very soon for the final program well located in Fisher County, Texas.

Pawnee SE Ohio Development (2 wells in SE Ohio, 2 wells in Pawnee County, Oklahoma):

Drilling is tentatively scheduled to begin for the first of the two Ohio wells this month. We have excavated and built both drill-sites in Pawnee County, Oklahoma and are preparing to begin drilling the first of two wells (Foust #9-9 and Foust #10-9).

The Company now has plans to drill one (1) additional well location (Watkins #1) for a total of nine (9) wells in Washington and/or Athens Counties, Ohio.

The Company can make no assurances as to present and/or future production rates or estimates for any given well or project. There are risks and uncertainties associated with any oil and gas drilling, completion and production operations.

"Weather permitting, we anticipate field operations to very busy this winter in southeast Ohio," said Steve Stengell, Allied's President.

About Allied Energy

Allied Energy, Inc. (Other OTC:AGGI.PK - News) 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, third party geologists, industry consultants, petroleum engineers, and financial analysts whose combined industry experience is essential to the success of each project. Understanding the inherent risks of oil and gas development, 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 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. 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 such as the reliance upon the recommendations and information provided by industry experts including but not limited to filed operators, geologist, etc.

     Company Contact:
      
     Steve Stengell
     Allied Energy, Inc.
     2800 Griffin Dr.
     Bowling Green, KY 42101
     Phone: 866-256-5836
     Fax: 800-251-9322
     Website:  http://www.alliedenergy.com
     Email: info@alliedenergy.com