Allenergy Inc. (ALRY)

[blackoak]

OK, folks, here's the last leg of the trilogy re my visit with ALRY in KS. I will focus on some observed but not guaranteed numbers. Having spoken with Larry today, I know that I am not violating any company confidential info.

1. The company sold three oil transports during the week I was there and had called for two more pickups the following week. Larry today verified that indeed those two transports have been picked up. That makes 5 tanker truck loads of approx. 160 barrels each at an average of $85/barrel. You do the math! He also expects two more loads for pickup prior to the end of February.

2. As of this moment, Ball lease wells #15, 18 & 21 are pumping the black stuff into the existing 400-barrel Ball tank battery with another 200-barrel tank due in the near future. Ball lease wells #17 (the one I observed perforated) and #19 are expected to produce their own black gold shortly. Rumor is that as steadily spectacular as #15 has been producing, #19 is expected to surpass that one easily in the very near future!

3. I believe two of the above-mentioned truck loads came from our Creek lease in Oklahoma, which traditionally earn us closer to $90/barrel for its superior oil quality.

4. While Larry & Rex are concentrating on oil production at the expense of natural gas, even gas output through the meter will swing wildly from minimal throughput up to 100,000 mcf/day! You probably noticed gas has breached the $9/mcf mark recently so do the math again, however the company's emphasis right now is on oil production and it seems to be working nicely.

5. For what it's worth, Dart Industries is plowing ground for what looked like a 6-inch gas collection pipeline right next to one of our leases in KS, but I can't remember which lease!

6. Larry feels extremely confident that the first quarter of 2008 looks already like a blockbuster and we still have over a month to go. He expects 1st quarter results to be released in mid-April.

7. Look for 2007 balance sheet and income/expense final numbers by mid-to-late March. I'm looking forward to a favorable comparison to the figures for 2006.

Now I know some of you will immediately wonder why Larry has not put out this info himself. You all really know why after perusing my rantings about keeping the CEO mainly in the field, for now. But fear not, Larry has committed to releasing a company status report publicly before this week is out.

Finally, allow me to summarize my trip by stating here that Allenergy is fast becoming a significant blip on the radar screens of bigger fish in the O&G industry. Just listening to one side of his office telephone conversations and observing the type of people stopping by to nose around has convinced me of our new status in heartland O&G exploration and production.

We now have TWO companies vying to buy our oil and we are already benefiting from their competition. Both companies are spreading our reputation just by the increasing volume of business with Allenergy combined with the consummate professionalism of Larry, Rex & crew.

Hope all of this helps...I'm available to answer any questions about the foregoing. Right now I'm going to bed.......

Regards to all from Blackoak...................zzzzzzzzzzzzzzzzzzz