Allenergy, Inc. News

Allenergy Acquires 'Turnkey' Kansas Lease; Will Increase Daily Production Numbers

INDEPENDENCE, Kan., June 18 PRNewswire-FirstCall — Allenergy, Inc. (Pink Sheets: ALRY), an independent oil and gas producer focused on Southeastern Kansas, has acquired the 160-acre Bane Lease located in south central Chautauqua County, Kansas. The Bane Lease has three existing wells completed in the Wayside Formation that was shut in during a prior period of declining oil prices. Accumulative production of these three wells totaled 7,571 barrels of oil produced.

"This is a major next step in our business strategy of acquiring more leaseholds to the west of our current production leases," said Larry Sanford, President and CEO of Allenergy. "Due to the geographical features of this the Bane Lease, the result will be to obtain greater daily production numbers to build to the continuous oil inventory needed to achieve our goals."

According to Allenergy, the Bane lease is completely equipped, including pumping units, electrical components and all necessary hardware needed to be put back into production immediately. The tank battery is fully intact with an all-season road to accommodate the oil marketers' transports for oil pickup.

"The Bane Lease was never fully drilled out because of the declining oil prices at the time of being shut in. Allenergy believes that four strategic locations need to be drilled to maximize the potential oil recovery on this prolific 160-acre lease. A drilling rig is scheduled for the last week in June to drill the first of those four wells. Because of the deeper Wayside Formation encountered in this area versus the formation in our more shallow leases to the East, we expect excellent bottom hole pressure which would mean greater oil recovery and longevity from each well," stated Mr. Sanford.

"With our most recently-reported oil sales at $99.70 per barrel, and the fact that we have acquired essentially a turnkey operation, we expect the new Bane Lease to be a significant addition to our growing number of producing wells," concluded Allenergy's President.

About Allenergy: Allenergy, Inc. (Pink Sheets: ALRY - News) is an independent energy company strategically focused on Southeastern Kansas where it currently holds approximately 4,740 acres of leased land with more than 150 oil and gas wells on its producing properties.

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

Note: Certain statements in this news release may contain "forward looking" information within the meaning of rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Act of 1934 and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, may include forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will be accurate and actual results and future events could differ materially from those anticipated in such statements.

Contacts: Larry Sanford Lsanford2@aol.com Allenergy, Inc.: 620/331-9992 E&E Communications Paul Knopick, (949) 707-5365 pknopick@eandecommunications.com

SOURCE Allenergy, Inc.

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