AGGI Allied Energy Inc (PK)

Allied Energy, Inc. (PINKSHEETS: AGGI) announced today that the company has signed a letter of intent to purchase its new corporate headquarters in Bowling Green, Kentucky. The property is located at 2427 Russellville Road and is the former State Farm claims service center.

Allied's new building is located on ~4.6 acres (zoned highway business) and consists of ~11,200 square feet of existing office space. Allied has plans to immediately build out and expand to up to ~13,500' total office space in an effort to facilitate continued record sales and growth for the company.

For the nine months ended September 30, 2010, the Company reported total revenue of $20.8 million, which was a 96% increase from the same period for 2009. Of this amount, for the 2010 period, $19.9 million in revenue was turnkey drilling revenue, and $875,600 was oil and gas production revenue. During the first nine months of 2009, the Company had $10.2 million of turnkey drilling revenue and $424,800 of oil and gas production revenue. The Company's earnings before income taxes (EBIT) of $5.0 million increased by 845% when compared to the Company's earnings for the same period of 2009. Net income was $2.8 million for the first nine months of 2010 as compared with a net loss of $664,748 for the same period of 2009.

Allied Energy, Inc. is an independent oil and natural gas operator engaged in the exploration, development, and production of oil and natural gas, primarily in Texas and Oklahoma. Through its wholly owned subsidiaries, Allied Operating Oklahoma LLC and Allied Operating Texas LLC, and its Allied Gas Transmission, a majority owned subsidiary, Allied Energy, Inc. operates its oil and natural gas properties. The company's strategic focus is the development of reserves through the utilization of the latest horizontal drilling and production technology in Central-East Texas.

"We are confident that our new corporate headquarters should better facilitate Allied's future growth, business model and overall operations as an independent producer and operator in Texas and Oklahoma," said Steve Stengell, Allied's President and CEO.

To find out more about the company, its audited financial statements, management team, operations and other public information, please visit www.alliedenergy.com

No assurances can be made as it relates to present or future production rates or estimated reserves for any given project. Tremendous risks and uncertainty are associated with oil and gas drilling, completion, development and production operations. It is impossible to accurately estimate future rates and/or declines in production operations for oil, condensate and natural gas. Oil and natural gas volumes are often reported in an equivalent amount of one or another petroleum product as determined by prices and volumes of the petroleum produced. Production volumes herein were reported from the wellhead via electric flow meters.

About Allied Energy

Allied Energy, Inc. (PINKSHEETS: AGGI) is an independent oil and natural gas operator and developer primarily engaged in the exploration, development, and production of oil and natural gas in the continental United States. The Company relies upon its confidential industry partners, well operators, geologists, petroleum engineers, and other operational personnel whose combined industry experience is essential to each project. Allied Energy's strategic focus is the development of oil and natural gas reserves.

Allied Energy has achieved the "Best of Bowling Green" award for the category of crude oil and natural gas production for the last two years and was recently chosen by an independent selection committee as the recipient for the Bowling Green "Outstanding Business of the Year" community impact award for 2010.

Allied Operating Texas, LLC, a wholly-owned subsidiary, operates and develops certain of Allied Energy's vertical and horizontal drilling programs. Allied Gas Transmission, Inc., a majority-owned subsidiary of Allied Energy, was formed to construct, operate and own gathering systems and/or pipelines to connect production controlled by Allied Energy to larger pipelines.

For more information: www.alliedenergy.com

CAUTIONARY STATEMENTS

Certain statements in this release that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Those 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, risks of blow-outs and other potential damaging occurrences inherent to the oil and gas industry, and 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. For these and other reasons, 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 following: (i) the Company's ability to obtain sufficient capital or a strategic business arrangement, including the sponsoring of general or limited partnerships, to fund its expansion plans; (ii) the Company's ability to acquire interests in commercially attractive properties to develop and/or operate; (iii) the Company's ability to build the management and human resources and infrastructure necessary to support the growth of its business; (iv) competitive factors and developments beyond the Company's control, including but not limited to the strength of the overall economy; and (v) other risk factors inherent to the oil and gas industry.

Company Contact: Heather Age 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