Allied Energy, Inc. Announces Spudding of the Walker #1H Well

Allied
Energy, Inc.

Announces Spudding of the
Walker #1H Well

BOWLING
GREEN, KY-- July 2, 2013 - Allied Energy, Inc. (?Company?)
(OTCMarkets: AGGI) is pleased to announce that drilling operations have
commenced on a horizontal well in Milam County, Texas, on behalf of two general
partnerships sponsored by the Company.

Walker #1H well: The Walker #1H
well was recently spud and is now scheduled to be drilled to a total vertical
depth (TVD) of approximately 5,680 feet, and a total measured depth (TMD) of
approximately 8,350 ft.

The well will be testing the Austin Chalk formation, and, if
successful, the Company believes the well could be completed by the end of 3rd
quarter, 2013.

The Company has a 0.197% working interest in the well.

About
Allied Energy:

Allied
Energy, Inc. sponsors oil & gas partnerships through which it raises funds
for the drilling and development of oil & gas wells. The Company serves as managing general
partner and as the turnkey operator for the partnerships, and often owns small
interests in the partnerships and/or small interests in the properties in which
the partnerships participate.

The
Company?s ultimate strategic focus is on the development of oil and natural gas
production and reserves. The
Company believes that its oil and natural gas development strategy will provide
growth to the Company in the future.
For more information: www.alliedenergy.com

Forward-Looking
and Continuing Statements:

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, and uncertainties and other factors that may cause
the actual results, price of oil and natural gas, state of the economy,
industry regulation, reliance upon expert recommendations and opinions, and
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: (i) the
Company?s ability to obtain sufficient capital or strategic business
arrangements to fund its drilling plans; (ii) the Company?s ability to 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, including but not limited to the strength of the overall
economy; and (iv) other risk factors inherent to the oil and gas industry.