300% Increase in Oil-Per-Day Volume on Allenergy's Smith Lease Property in Kansas

COFFEYVILLE, Kan., Jan 08, 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 a 300% increase in daily oil production on the Company's Smith Well, attributable to the PC Pump(TM) system installed in early December 2006.

"This system replaced the conventional lifting process and has led to a tripling of our oil production per day," said Company President Larry Sanford. "Our Smith Well was drilled and completed in the Arbuckle Formation that is typically known to encounter a high saltwater-to-oil ratio. The PC Pump(TM) has moved a much greater amount of fluid to increase the oil volume."

"We had targeted an initial increase in oil production of 60 percent," Mr. Sanford continued, "but the current figures are clearly due to the rapid depletion of water production."

As previously announced by Allenergy, the Smith Well forms part of the Company's Smith Lease property, containing 480 acres along with the Ferguson Properties. The PC Pump(TM) technology continues to strengthen Allenergy's existing properties and holdings in Montgomery County, Southeastern Kansas.

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

CONTACT: +1-877-277-8171; or Paul Knopick of E&E Communications, +1-949-707-5365, pknopick@eandecommunications.com, for Allenergy, Inc.

URL: http://www.allenergy.com

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