Allenergy Oil and Gas Properties Now Encompass 5,500 Acres and 100+ Wells

COFFEYVILLE, Kan., Jan 31, 2007 /PRNewswire-FirstCall via COMTEX/ -- Allenergy, Inc. (OTC: 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, announced today that its holdings now encompass over 5,500 acres and more than 100 wells on producing properties in Southeastern Kansas and North Central Oklahoma.

"Allenergy has assembled an impressive collection of assets that produce oil and gas," said Company President Larry Sanford. "We are now releasing a comprehensive summary of our ten properties so investors can understand the Company's intrinsic value," Mr. Sanford stated.

ALLENERGY, INC. PROPERTIES IN JANUARY 2007

SOUTHEASTERN KANSAS

Chautauqua County -- 2,060 Acres:

~Ball Lease -- 480 Acres situated on the Longton Anticline with powerful

geology that suggests multiple producing zones, several Arbuckle plays,

coal bed methane existence, and multiple producing oil sands.

~Fields Lease -- 300 Acres in the middle of newly-discovered coal bed

methane fields, Allenergy was successful in securing this lease ahead of

several major independents who previously sought the property.

~Thorne Lease -- 160 Acres located 1.5 miles south east of the

newly-discovered "Mississippi Lime," which came in at 235 thousand cubic

feet of gas and 13 barrels of oil per day. The Thorne Lease includes

several oil producing zones and coal bed methane.

~Thorne Home Lease -- 160 Acres adjacent to the Thorne Lease, containing

the same geographical attributes and potential.

~Dark Treasures Lease -- 960 Acres contiguous to the Ball Lease,

consisting of four leases, the Moore (160 acres), Clark (400 acres),

Pendleton (240 acres) and Bayless (160 acres), with each lease held by one

gas well, currently producing more than 80,000 cubic feet per day of

natural gas.

Montgomery County -- 480 Acres:

~Smith Lease -- 160 Acres with gas reserves estimated at 246.7 million

cubic feet of gas by Kune Laboratory, the property's production has been

enhanced with the installation of the PC Pump(TM) on one if its well

sites.

~Ferguson Lease -- 320 Acres with reserves in two zones that combine for

327.04 million cubic feet of coal bed methane gas in place. Five

additional wells are planned with 400 thousand cubic feet per day of total

production possible.

NORTH CENTRAL OKLAHOMA

Creek County -- 2,200 Acres producing profitably with 10 of 50 wells in

operation at present.

Logan County -- 320 Acres with one gas well completed thus far.

Okmulgee County -- 486 Acres:

~Kelly Lease -- has completed geology on sectors north and south, which

confirm the presence of the highly oil-productive Woodford Shale

Formation. Producing properties have been drilled south of Allenergy's

interests, yielding 300 barrels of oil per day.

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.

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

pknopick@eandecommunications.com

SOURCE Allenergy, Inc.

Allenergy, Inc.

URL: http://www.allenergyinc.com

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