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Allied Energy, Inc.: Allied Energy, Inc. Announces Results of Two More Wells in Pawnee County, Oklahoma

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^{Published in Business and Finance on Wednesday, June 10th 2009 at 12:23 GMT, Last Modified on 2009-06-10 12:25:49 by Market Wire}  

BOWLING GREEN, KY--(Marketwire - June 10, 2009) - Allied Energy, Inc. (PINKSHEETS: [ AGGI ]) announced an update today on its 4 well project located near the Arkansas River in Pawnee County, Oklahoma. Allied commenced a 4 well project on this lease at the end of 2008 and is now putting all four wells into production along with a salt water disposal well to handle formation water from the four wells.

The third well that Allied drilled in this project was the Eric Foust 9-9, which was commenced in February 2009 and drilled to a depth of about 3,000 feet. The well had both oil and gas shows during drilling in several reservoirs and covered the pit with oil when passing through the Layton. The log revealed several intervals that the Company plans to test. Given the successful gas test of the Eric Foust 7-9 and comparable showings on the logs, Allied started completion of the Prue and perforated from a reported 2,162-70 feet.

"There are some very interesting shows and indications on the logs in some reservoirs below the Prue," said Steve Stengell, President of Allied Energy. "However, we are still doing some analysis of these reservoirs and believe that completing the Prue in the meantime was the best option. We think these lower reservoirs may be a significant play that has not been tested very much in this area," he added.

Completion of the well was recently finished, and electric power is now being run to the well. The well was tied into the salt water disposal well recently and is ready to be put into production. Allied is only waiting for the electric company to turn on the meter this week, so that it can turn everything on.

After drilling the 9-9, Allied then started drilling the Eric Foust 10-9, which was drilled to a depth of about 2,990 feet. Despite an excellent oil show in the Layton at about 1,550 feet, the well encountered numerous drilling difficulties including nearly losing the drill pipe and then later the casing in the hole during completion. It appears that either an underground water cavern or fault was encountered as the driller had difficulty keeping the well bore from sluffing in throughout.

"We were faced with either stepping out from this well and drilling a new location or utilizing an existing well bore to complete in our targeted zones," said Stengell. "We decided the lowest risk option was to complete an existing well bore in the zones we know are usually productive in this area," he continued.

Therefore, Allied began completion work on the Eric Foust 10-9A last month and again targeted the Prue reservoir. The well was perforated from a reported 2,151-60 feet and, similar to the Eric Foust 7-9, is exhibiting a strong gas drive with some oil.

"We are pleased to wrap up the drilling and completion work on this 4 well project and are excited about getting these wells into production here in the next few days," added Stengell. "Once we've stabilized production and have completed our analysis of the lower reservoirs, we will probably look at systematically going back and completing other zones and co-mingling production in each well bore. For now though, we want to focus on establishing steady production revenues and the appropriate management of lease operating expenses," he said.

Revenue distribution should begin for the Foust #9-9 and #10-9A in the next 90-120 days.

No assurances can be made as it relates to future production rates, rates of return, project timelines or estimated reserves. There are tremendous risks and uncertainties associated with oil and gas drilling, completion, production and development.

About Allied Energy, Inc.

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, recommendations from third parties and financial experts 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 more than 6,000 acres under lease, more than 70 wells under development (110 +/- well-bores under control) and continues to build its own gas line infrastructure system in Rogers County to maximize its price for gas at the wellhead. Allied and its partners are also participating in oil and gas projects located in Leon County, Texas, Morgan County, Colorado and Washington/Athens Counties, Ohio.

The Company has a wholly owned subsidiary, Allied Operating LLC, including a field office, ten (10) employees and various equipment located in Oolagah, Oklahoma. Allied Operating supervises the Company's field operations (120 +/- well-bores total) located in Rogers and Pawnee Counties, Oklahoma.

Earlier this year, Allied Energy, Inc. formed Allied Gas Transmission, a majority owned subsidiary, also located in Rogers County, Oklahoma. Allied Gas Transmission is currently developing a gas pipeline / transmission system in Rogers County.

The Company's audited financial statements can be viewed at [ www.alliedenergy.com ] or [ www.pinksheets.com ]

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 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. Production rates are often estimates and reported by a contracted operator and may vary. Shrinkage, line loss and other factors may decrease actual reported amounts of gas production. Gas transmission costs and the quality of the gas may also adversely affect the priced received and total reported volume. 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.