Allied Energy Announces Continued Record Earnings and Growth for 2008

Allied Energy (PINKSHEETS: AGGI) announced record earnings and continued growth for the nine months ended September 30, 2008. Interim financial statements are now available to the general public at www.pinksheets.com and www.alliedenergy.com.

The Company reported revenue of $9.3 million for the nine months ended September 30, 2008. This is an increase of $5.8 million or 164%, compared to the same period in 2007. The Company's net income before taxes of $0.8 million resulted in an increase of $0.6 million or 290%, over the same period in 2007.

The Company's costs of sales for the nine months ended September 30, 2008 totaled $6 million as a direct result of the Company's aggressive development programs. Selling, general and administrative costs for the nine months ended September 30, 2008 totaled $2.5 million and resulted in an increase of $0.5 million or 22% for the same period in 2007.

The Company's cash and cash equivalents as of September 30, 2008 increased $0.9 million to $2.4 million since December 31, 2007. Cash used during the nine months ended September 30, 2008 include, but are not limited to, increased Company participation in drilling program syndications, numerous lease mineral rights acquisitions, development of oil producing properties, building of gas line infrastructure, stock buy back program, other alternative investments and the acquisition/formation of the Company's own operating company located in Rogers County, Oklahoma, Allied Operating, LLC.

Allied Operating, LLC, a wholly owned subsidiary of Allied Energy, operates Allied Energy's producing properties and provides supervision of the Company's drilling, completion and entire field operations in Rogers County, Oklahoma.

Although the Company's independent registered public accounting firm has reviewed this information, these financial statements are unaudited and should be used in conjunction with the December 31, 2007 audited financial statements and footnotes. Operating results for the nine month period ended September 30, 2008 are not necessarily indicative of the results that may be expected for the year ending December 31, 2008.

"We remain extremely confident that for 2008 we will continue on track to outperform 2007 in almost all areas of the Company's operations," said Steve Stengell, Allied's President.

The Company currently executes a strategy of developing conservative projects with consistent projected returns in Oklahoma as well as other areas across the country. Allied is currently focused on securing additional acreage in Rogers County with the goal of drilling up to 150-200 CBM and/or conventional wells over the next few years.

In addition to Rogers County, Oklahoma, the Company has expanded its drilling operations to include the Company's 8-well pilot program in Southeast Ohio and a 4-well program in Pawnee County, Oklahoma while also participating in projects located in Fisher and Leon Counties, Texas and Morgan County, Colorado.

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 oil and natural gas exploration strategy should provide substantial growth to the Company for the years to come. For more information: www.alliedenergy.com

The financial reports herein are unaudited statements. 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, 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.