Allied Energy, Inc. Announces Operations Update Walker #1H and Clanton #1H Horizontal Wells

Allied
Energy, Inc.

Announces Operations Update

Walker #1H and Clanton #1H
Horizontal Wells

BOWLING
GREEN, KY-- (Marketwire ? August 10th, 2013) - Allied Energy, Inc. (?Company?)
(OTCPink: AGGI) is pleased to announce drilling updates with regard to the
Walker #1H and Clanton #1H horizontal wells in Milam County, Texas.

Walker #1H Well: The
Walker #1H well was recently drilled to a total vertical depth (TVD) of 5,686?
and a total measured depth (TMD) of 8,272?. The well was drilled horizontally
in the Austin Chalk formation, where heavy natural fracturing was encountered.

The Walker #1H well is the second
in a series of three wells to be drilled on the company?s Yakesch lease in
Milam County, Texas. The Company?s engineers are currently developing a
completion program that is expected to commence in the next few weeks.

The
Walker #1H well was drilled on behalf of two general partnerships sponsored by
the Company. The Company holds a
0.197% working interest in the well.

Clanton #1H Well: The Clanton
#1H well was recently drilled to a total vertical depth (TVD) of 6,120? and a
total measured depth (TMD) of 8,638? and had heavy natural fracturing along the
lateral section. The Company plans
to commence completion operations in the next few weeks.

This
is the third horizontal well drilled by the Company on its Yakesch lease in
Milam County, Texas.

The
Clanton #1H well was drilled on behalf of two general partnerships sponsored by
the Company. The Company has a
0.197% working interest in the well.

Company President, Scott Harris said, ?We are very
encouraged by the results we have seen thus far in Milam County and look
forward to the drilling of additional wells in the future.?

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.