Allenergy Inc. Updates Production

INDEPENDENCE, Kan., Oct 15, 2007 /PRNewswire-FirstCall via COMTEX/ -- Allenergy, Inc. (Pink Sheets: 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 is updating August and September production numbers and a recent report on our G-4-15 Redd Sand well located on the Ball Lease in Chautauqua County, Kansas.

June and July oil and gas production remained consistent with May but in August dropped 10 % to the equivalent of 1360 BOPD. The eight wells reported on the East Ball were put in production with the existing equipment but experienced internal field problems with electrical shorts, flow line leaks and fittings that wouldn't allow fluids to reach the tank battery. Three wells have since been reworked and are producing 3 BOPD.

"Five wells are in need of rework but at that time we exerted our efforts to prepare for the completion of the G-4-15 Redd Sand well while weather conditions were in our favor. We felt this decision was in the best interest of our shareholders and the Company. Our efforts have been awarded," said Larry Sanford, President.

Since September 1 Allenergy has increased gas production from 3.5 million cubic feet per month to 6.5 million cubic feet. The oil production numbers have increased to 1345 barrels of oil per month resulting with the equivalent of gas to oil a total of 1995 barrels of oil per month. Since October 1 the Company has sold 570 barrels of oil and 320 barrels ready for the marketer. Gas sales remain the same pace as September but will increase as the G-4-15 well progresses.

Our new Redd Sand well has been a challenge to control because of the extraordinary turbulence that is taking place in this formation. Normal pumping methods just allowed gaseous fluid at uncontrollable volume to be produced. Presently the annulus (casing) is shut in at 210 psi with a back pressure valve on the tubing set at 225 psi to allow actual pumping of fluid that is providing oil from the zone. Now that the Company has control of this well, initial production rate can be established soon.

Luther Park has commented that this new discovery is the best he has seen since the Blasie and Melander fields located 21/2 miles East of the Ball Lease. These two fields produced around 100,000 thousand barrels of oil but prematurely lost the gas drive it needed. We are completing the G-4-15 well in a manner to sustain this gas drive for a longer producing life. The Ball Lease has more acreage than both the Blasie and the Melander combined. Allenergy has leased the Feed Lot ( Melander ) which is part of the Bayless "B" acquisition. As of this date, no natural gas wells have been drilled on this acreage. There are successful producing wells currently to the East and South of this 160 acres.

The Company has numerous applications on hand of qualified personnel from surrounding oil companies that wish to work for Allenergy. "Our success in this area has afforded us the ability to obtain seasoned people to our staff and field operations. The team at Allenergy has proudly worked long and hard hours, but now is the time to grow and prepare for these exciting times," Mr. Sanford said.

About Allenergy: Allenergy, Inc. (OTC: ALRY) 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 7,000 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.

Allenergy, Inc.: 877-277-8171.

E&E Communications Paul Knopick, (949) 707-5365

pknopick@eandecommunications.com

SOURCE Allenergy, Inc.

URL: http://www.allenergyinc.com

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