Allenergy Inc. (ALRY)

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ALRY
Allenergy Reports Successes Despite Record Rainfall in Kansas

COFFEYVILLE, Kan., July 9, 2007 /PRNewswire-FirstCall via COMTEX

ALRY with a 17-year history in the oil and gas industry and current involvement in the multi-billion dollar natural gas fields in Kansas and Oklahoma, today announced that flooding in Kansas in June, as a result of record breaking rainfall, prohibited the completion of its aggressive plan for the month of activating 15 wells into production on its newly acquired Bayless "B" leases.

During the last four days of June, the Company managed to put four wells, two oil and two gas, into operation. The two gas wells, still in the de- watering stages, will at the present rate provide an additional 2 million cubic feet of natural gas in July. This number will increase significantly as the de-watering stage progresses. The oil wells are hitting at the top of the stroke (de-watering stage) and beginning to have a good show of oil but not in measurable amounts at this time. The remaining 15 wells will resume as soon as conditions allow. The geology is evident and will produce for the Company a banner month of record production figures.

Rex Horning Well Service (RHWS) has amassed a tremendous backlog due to the weather. RHWS and Allenergy's production people are in a 12 hour, 7 day work schedule for as long as it takes to catch up on the clients' needs and to grow the Company's substantial production assets. RHWS is currently finishing a three well service job for the Company in Creek County, Oklahoma, near the town of Mannford. If Allenergy were still relying on outside service contractors, these three wells wouldn't be in their schedule for months. After these wells are put on pump, RHWS will return to the drying Southeast Kansas area to immediately move a workover rig to the Bayless "B" leases and dispatch the remaining rigs to service our awaiting clients.

"Our entire team at Allenergy has endured these trying times, often ignoring their own personal losses, helping in the communities affected, and we were still able to prioritize limited opportunities to maintain May's production throughout June," said Larry Sanford, President.

ALRY0.08, 0.00, 0.0%) is strategically focused on areas of Kansas and Oklahoma believed to contain more than 1.5 trillion cubic feet of natural gas and helium at shallow depths. The Company currently holds approximately 5,500 acres of leased land with over 100 oil and gas wells on its producing properties.

For more information about the Company, please visit http://www.allenergyinc.com