AGGI Allied Energy Inc (PK)

Allied Energy Group, Inc. (Pink Sheets:AGGI) announced today that it has closed its acquisition of additional interests in 27 wells on over 2,870 acres in Rogers County, Oklahoma. Allied acquired the interests from its field operator, KMV Consulting, Inc. As a result, Allied now has a 63.75% net revenue interest in 14 producing wells and 3 wells awaiting reworking services. Allied also has a 75% net revenue interest in over 1,780 acres in this same field where there are 10 wells being put into production. Since October 2006, Allied has worked with KMV to drill 13 new wells together with 12 being put into production and one that first tested unsuccessfully for oil and will be completed as a gas well. In total, Allied has secured approximately 3,100 +/- acres in Rogers County and has planned expenditures for 34 new wells over the next year or so. Assuming Allied enjoys the same success rate to date, this would bring Allied�s total well count in this area to 59 wells. Allied is currently working to secure additional acreage as part of its strategy to drill 150 to 200 wells in this area. The high success rate experienced in this area, the consistent production results from each well drilled and the ability to control the operations at the field level formed the primary basis for Allied�s decision to make the acquisition. �We made the decision last year that this area of Oklahoma is where we want to focus our resources because of the conservative nature of the drilling and production operations coupled with the consistent results that are experienced in this area,� said Cole Halliburton, Allied�s President. Allied�s management made the decision to participate in a number of wells in this particular field before deciding to commit significant resources to developing an area. �By getting our feet wet on about a dozen wells, we got a chance to ensure the results of the project met our expected outcomes,� said Steve Stengell, Allied�s Vice President of Operations. �It also gave us an opportunity to evaluate the fieldwork of the operator. Our opinion of KMV as an excellent operator was confirmed recently by a conversation I had with a landowner who expressed that KMV is one of the better operators in this entire area. With very sound economics and an experienced field operator who has a great reputation in this basin, it made perfect sense to acquire these interests and expand our presence in Rogers County,� he continued. KMV Consulting, Inc. was listed in �An Investor�s Guide to Coalbed Methane� supplement to the December, 2006 issue of the Oil and Gas Investor magazine as an active developer of CMB properties in the US. About Allied Energy Group Allied Energy Group, Inc. (OTC: 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, seismic specialists, and financial analysts whose combined industry experience is essential to the success of each project. Allied Energy Group'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 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.