Allied Energy Announces Apparent Drilling Success in Pawnee County

BOWLING GREEN, KY–(EMWNews – August 25, 2008) – Allied Energy, Inc. (PINKSHEETS: AGGI)

announced today that it has drilled the Foust #7-9 well located in Pawnee

County, Oklahoma to a total depth of 3,000 +/- feet and encountered oil

and/or gas shows in at least five conventional reservoirs.

The Foust #7-9 is currently in the completion process and is anticipated to

establish commercial oil production in the next couple of weeks. Although

the Company is very confident in these results, no assurances can be made

that commercial oil production will be established.

“Based on the professional recommendations from multiple field experts,

historical oil production data in this area and analyses made from the

electric well log, we are confident that the Foust #7-9 could potentially

become one of the better producers in this field,” said Allied’s President,

Steve Stengell. “We are currently preparing to begin drilling operations

for the second location, the Foust #8-9.”

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, 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 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 of industry experts.