COFFEYVILLE, Kan., Jan 04, 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 it has initiated discussions to sell natural gas to the City of Coffeyville, Kansas, which would be used to power generators that supply electricity to the City and surrounding areas.

"We have been in contact with the City Engineer and have proposed placing a gas dehydration unit on Allenergy's 160-acre Smith Lease property," said Company President Larry Sanford. "This unit will dry the gas and then compress it into a dry gas pipeline that will be used to power the generators," he added.

"Allenergy has planned follow up meetings with City of Coffeyville officials to expedite this important project," Mr. Sanford concluded. Coffeyville, in southeastern Kansas, is a manufacturing center and home to Amazon.com's largest distribution outlet.

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.

SOURCE Allenergy, Inc.

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