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AGGI (After Hours PR) Oil Joint Venture

AGGI Snapshot: *** Ties to Halliburton *** Only 1MM Public Float *** No Debt *** Only Trading Since August

Allied Energy Participates in Joint Venture With Young Oil Corporation

BOWLING GREEN, KY -- (MARKET WIRE) -- October 16, 2006 --

Allied Energy Group, Inc. (PINKSHEETS: AGGI) announced today that the Company is participating with the Young Oil Corporation in the drilling and development of three gas wells located in Knox County, Kentucky.

"Our primary target in Knox County is the Big Lime formation," said Steve Stengell, Sr. Vice President of Operations for the Company. "An understanding of the reservoir's characteristics and the application of seismic data is key to this area, and Young Oil is the prominent developer in this area."

"The company is delighted to work with the Young Oil Corporation on this project and is confident that the outcome from these three wells will result in more extensive development of this area in the future," said Scott Harris, Allied's Sr. Vice President, who added, "Field operations are currently underway."

About Allied Energy Group

Allied Energy Group, 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 employs 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, 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'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.