July 25, 2005

Dear Shareholder:

FOR IMMEDIATE RELEASE

Report from the field on the Smith FA-1 well which was drilled Friday, July 15th.

Welcome! Here’ s another report from the field on the Smith FA-1 well which was drilled Friday, July 15th.

Our tank battery pad has been completed including gravel and road culvert to accommodate the oil purchase transports. We have ¾ of a mile of flow lines and electric lines in place. At the end of today we will have the trench finished, lines in the trench and covered. The 6'x20' heater treater will also be delivered and set up today.

Most of the work is done ourselves because (1) we know how and (2) we don’t have to rely on contactor schedules. 

We have ready for transport two 202 barrel oil tanks loaded on our gooseneck trailer and the Happy Pumping Unit loaded on another gooseneck trailer that we own. JC and myself pulled another trailer loaded with disposal line and 2-3/8 tubing to the well to be ready to run in. 

The pulling unit should be on site Tuesday to run the 4½ casing, which will be cemented top to bottom. We have to rely on contractor schedules for this operation. We will use our pulling unit to run in the 2-3/8 tubing and hang on the well. We will road one of the three 80 barrel bobtails to the lease so we can transport fluids from the old tank battery to the new one. We own a D-4 dozer that will be used to maintain lease roads and tank battery pad.

Cortny, Dale, JC, Bruce, Tim, Frankie and myself are joining forces to complete this operation ahead of the projected schedule of 2 to 2½ weeks.

We will follow with another report this week.

 Respectfully,

Larry 

NOTE:  The above equipment and rolling stock is just a slight mention of what Allenergy owns outright. Pictures are coming.

July 19, 2005

Dear Shareholder:

FOR IMMEDIATE RELEASE

Allenergy Announces the Drilling of the Smith FA-1 Well

SANTA ANA, Calif. – July 19, 2005 – Allenergy Incorporated (OTC: ALRY) completed drilling operations on the Smith FA-1 well on July 15, 2005.  Our target formation was the Arbuckle as we anticipated this site could be on an Arbuckle high.

Drilling samples and open hole logs indicate we are 14' higher than the two offset wells.  When we reached the Arbuckle, oil surfaced and flowed into the pit.

Geology samples and open hole logs are being correlated now.  The completion operations should be done in the next 2 to 2 1/2 weeks, weather permitting, of course.

Shareholders, no forward looking statements in this report.  Look for the production completion report soon.

June 14, 2005

Dear Shareholder:

The following press release was distributed to news media via wire service on Tuesday, June 14, 2005, at 08:00 AM EDST.

FOR IMMEDIATE RELEASE

Allenergy to Begin Drilling on Smith
Lease – Montgomery County, Kansas

SANTA ANA, Calif. – (PRIMEZONE) – June 14, 2005 – Allenergy Incorporated (OTC: ALRY) today announced it is preparing to drill the Smith #FA-1 well on the recently acquired 152.59 acre oil and gas lease located in the SE 1/4 of Section 6-34S-17E in Montgomery County, Kansas. Situated in the Coffeyville-Cherryville field, it is known as the “Smith Lease.”

The Smith #FA-1drill site, in the Northeast portion of this acreage, is showing to be a very desirable “high-structured” Arbuckle formation well with the anticipation of increased daily production.

This well has been fully funded and above ground production equipment has been purchased. Allenergy has applied for an Operators License from the State of Kansas (Kansas Corporation Commission) and it is currently in the process of being issued. Upon receipt of the Operators License, Allenergy will submit an Intent to Drill form. The Smith #FA-1 well is also on the driller's schedule, and should commence drilling within the next three weeks – weather permitting.

Allenergy President, Larry L. Sanford, states, ”We expect great success with the FA-1 well…and this is just one milestone we can receive from the Smith lease. We are also in negotiations on several additional leases in Montgomery County and the surrounding area.”

The Kelly Lease – a 430-acre gas lease in Okmulgee County located in northeastern Oklahoma acquired in mid-2004 – is beginning to meet original projections and expectations. Allenergy has also finalized its MIT certification for the disposal well.

“We encountered some downhole problems that we were initially unaware of,“ Sanford adds, “but through innovations from our Production Superintendent, we saved additional time and money.”

Allenergy notes current gas production exceeds that which was produced prior to the acquisition of the Kelly Lease – and the company still has three additional wells to bring online and is currently evaluating activation planning.

About Allenergy

Allenergy was incorporated in Oklahoma in February 1989 as a closely held company for various long-term oil and gas leases for investment purposes only. In 1997, new management refocused on oil field service work and increasing oil and gas production on existing leases. In February 2001, Allenergy became a public company (ALRY) and turned full attention to oil production, drilling and exploration, and natural gas drilling and development. In late 2002, Allenergy also launched a developmental investor-participation Drilling and Exploration Program. Today, production of both oil and gas is steadily increasing, initial investor-participation wells are in final stages of completion and the company is actively engaged in growth through acquisition. The convergence of record price for both oil and natural gas and the company's current drive for increased rate of production are anticipated to create an era of unprecedented rapid growth and profitability.

Note: Except for historical information contained herein, the statements in this release are forward looking statements that are made pursuant to the Safe Harbor provision of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause the company's actual results in future periods to differ materially from forecasted results. Such risks and uncertainties include, but are not limited to; market conditions, competitive factors, the ability to successfully complete additional financings and other risks.

For information write: Allenergy Inc.,1820 East Garry Avenue, Suite 111, Santa Ana, CA 92705, phone 949-955-1411. Email: jcallenergy@aol.com  or visit http://allenergyinc.com.  

March 1, 2005

Dear Shareholder:

The following press release was distributed to news media via wire service on Tuesday, March 1, 2005, at 8:00 AM EST.

FOR IMMEDIATE RELEASE

Allenergy Continues Aggressive
Lease Acquisition Program

SANTA ANA, Calif. – (PRIMEZONE) – March 1, 2005 – Allenergy Incorporated (OTC: ALRY) today announced it has entered into an agreement to acquire a substantial 152.59 acre oil and gas lease located in the SE 1/4 of Section 6-34S-17E in Montgomery County, Kansas. Situated in the Coffeyville-Cherryville field, it is known as the “Smith Lease.”

The Smith lease has two existing wells completed in the Arbuckle formation. Both are currently shut-in and – when brought online (during March 2005) – they are expected to provide full return-on-investment within approximately two and one-half months. The Smith Lease also has an existing disposal well in service.

Also of note, this lease is situated on a very prolific structured Coal Seam gas formation – which will also accommodate the drilling of two additional wells. Even more important – and the primary reason for purchasing the Smith lease – is that one drill site in the Northeast portion of this acreage is showing to be a very desirable “high-structured” Arbuckle formation well with the anticipation of increased daily production.

Also, as noted in the press release of February 7, 2005, the Fowler #11 well was completed as scheduled – with initial production (24-hour IP) of 57 bbls – and daily production leveling off at between 10 and 15 bbls (barrels of oil per day).

Recently, Allenergy mounted a concerted effort and drive to increase production. And as also noted in the February 7th release, over the last three months – in Creek County alone – production increased by 35% and operating costs were reduced by more than $7,500.00 a month (for a combined equivalent revenue of 200 barrels of oil per month).

At every level, both as a company and on an individual basis, Allenergy is fully committed to both maintaining an accelerated pace and to steadily improving production – as well as to continued growth through acquisition.

About Allenergy
Allenergy was incorporated in Oklahoma in February 1989 as a closely held company for various long-term oil and gas leases for investment purposes only. In 1997, new management refocused on oil field service work and increasing oil and gas production on existing leases. In February 2001, Allenergy became a public company (ALRY) and turned full attention to oil production, drilling and exploration, and natural gas drilling and development. In late 2002, Allenergy also launched a developmental investor-participation Drilling and Exploration Program. Today, production of both oil and gas is steadily increasing, initial investor-participation wells are in final stages of completion and the company is actively engaged in growth through acquisition. The convergence of record price for both oil and natural gas and the company’s current drive for increased rate of production are anticipated to create an era of unprecedented rapid growth and profitability.

Note: Except for historical information contained herein, the statements in this release are forward looking statements that are made pursuant to the Safe Harbor provision of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause the company’s actual results in future periods to differ materially from forecasted results. Such risks and uncertainties include, but are not limited to; market conditions, competitive factors, the ability to successfully complete additional financings and other risks.

For information write: Allenergy Inc.,1820 East Garry Avenue, Suite 111, Santa Ana, CA 92705, phone 949-955-1411. Email: jcallenergy@aol.com or visit http://allenergyinc.com. 

February 18, 2005

Dear Shareholder:

The following press release was distributed to news media via wire service on Friday, February 18, 2005 at 005:08 PM EST.

FOR IMMEDIATE RELEASE

Allenergy Mourns Loss of
CEO/President Rodger Garrity

SANTA ANA, Calif. – (PRIMEZONE) – February 18, 2005 – Allenergy Incorporated (OTC: ALRY) today announced the loss of its CEO and President, Rodger W. Garrity.

The 71-year old founder and Chief Executive Officer of Allenergy passed away at his home in Santa Ana, California on Tuesday, February 15th. Mr. Garrity was in the process of retirement from active company participation due to failing health.

Rodger Garrity is survived by his wife, Frankie M. Garrity, who is also acting Secretary/Treasurer of Allenergy Incorporated. Mrs. Garrity will continue on in this position for the foreseeable future.

Allenergy Incorporated today also announced Larry L. Sanford – presently Vice President of Field Operations – will now serve as company President. To date, Mr. Sanford has played a key role in restructuring both the company’s day-to-day field operation and aggressive acquisition program. He has 20-years experience in all aspects of the oil industry and has successfully completed more than 600 wells throughout Oklahoma and Kansas. Since joining the company April 1, 2004, Mr. Sanford and his primary field crew have been putting investor wells into production and increasing rate of production on existing company leases – with notable success – especially within the last 90-days. Mr. Sanford also serves on the Board of Directors of Allenergy Inc.

Allenergy also today announced the hiring of Certified Public Accountant ,Tim A. Johnston. He is a graduate of Oklahoma State University (1973) and has a wide range of experience and expertise in the Oil and Gas industry – in both field work and specialized accounting and taxation. Mr. Johnston has worked with numerous Oil and Gas purchasers regarding price contracts and division orders, and has extensive experience in overall management of small to large corporations. He worked with prestigious Deloite Touche (formerly Touche Ross) for seven years and has been President/Founder of Financial Services of Tulsa, Incorporated from 1988 to the present. Mr. Johnston will provide specialized Oil and Gas accounting and management services for Allenergy Incorporated and will be headquartered in Tulsa, Oklahoma.

In every respect and at every level, Allenergy – both as a company and on an individual basis – has resolved to continue the vision, dedication and course established by Rodger W. Garrity. The Oil and Gas industry mourns his passing as well.

For information write: Allenergy Inc.,1820 East Garry Avenue, Suite 111, Santa Ana, CA 92705, phone 949-955-1411. Email: jcallenergy@aol.com  or visit http://allenergyinc.com.

February 7, 2005

Dear Shareholder:

The following press release was distributed to news media via wire service on Monday, February 7, 2005, at 6:00 AM EST.

FOR IMMEDIATE RELEASE

Allenergy Completes Three Creek County Wells,
Increases Production and Reduces Operating Costs

SANTA ANA, Calif. – (PRIMEZONE) – February 7, 2004 – Allenergy Incorporated (OTC: ALRY) today announced it has put three more Creek County wells into production.

The Miller B-2 and Briggs #1 wells (originally on a three week re-completion schedule) were actually completed in two weeks with initial production of 7 BOPD (barrels of oil per day) and 8 BOPD respectively. Since that time, the Fowler #19 on the Fowler-Miller lease, also located in Creek County, was brought on line with initial production of 31.46 BOPD.

Three additional Creek County wells have been evaluated – identified as the Stokes #1, Vance #1 and Fowler #11 – and are scheduled for completion during February 2005, regional weather permitting.

The Stokes #2 well, originally purchased and put into production in early 2003, has undergone remedial work resulting in a three-fold increase in production.

Over the last three months, Creek County well completions have increased BOPD production approximately 35% – and improved operating efficiencies have reduced field operating costs by more than $7,500.00 a month (for a combined equivalent revenue of 200 barrels of oil per month).

A service unit pulling rig has just finished work on the Rupp #1-31 well – the first of Allenergy’s Investor-Participation wells in Logan County, Oklahoma – resulting in an initial 400% increase in both gas and oil production. The second Logan County Investor-Participation well, Rodger #1-33, is also scheduled to enter a final completion phase within the next 45- to 60-days, weather permitting.

The 430-acre Kelly lease in Okmulgee County, Oklahoma – purchased in August 2004 – with ten wells that can be put into production, has recently undergone remedial work on the disposal well to qualify for MIT (Mechanical Integral Test) Certification by the State of Oklahoma OCC. The Kelly lease gas gathering system is also being re-engineered in preparation for scheduled re-completions. Additional drilling sites on this lease are both feasible and are currently under consideration.

About Allenergy
Allenergy was incorporated in Oklahoma in February 1989 as a closely held company for various long-term oil and gas leases for investment purposes only. In 1997, new management refocused on oil field service work and increasing oil and gas production on existing leases. In February 2001, Allenergy became a public company (ALRY) and turned full attention to oil production, drilling and exploration, and natural gas drilling and development. In late 2002, Allenergy also launched a developmental investor-participation Drilling and Exploration Program. Today, production of both oil and gas is steadily increasing, initial investor-participation wells are in final stages of completion and the company is actively engaged in growth through acquisition. The convergence of record price for both oil and natural gas and the company’s current drive for increased rate of production are anticipated to create an era of unprecedented rapid growth and profitability.

Note: Except for historical information contained herein, the statements in this release are forward looking statements that are made pursuant to the Safe Harbor provision of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause the company’s actual results in future periods to differ materially from forecasted results. Such risks and uncertainties include, but are not limited to; market conditions, competitive factors, the ability to successfully complete additional financings and other risks, such as adverse regional weather conditions.

For information write: Allenergy Inc.,1820 East Garry Avenue, Suite 111, Santa Ana, CA 92705, phone 949-955-1411. Email: jcallenergy@aol.com  or visit http://allenergyinc.com.  

October 4, 2004

Dear Shareholder:

The following press release was distributed to news media via wire service on Monday, October 4, 2004, at 8:00 AM EDST.

FOR IMMEDIATE RELEASE

Allenergy Increases Oil and Gas Production on Creek County Leases

SANTA ANA, Calif. – (PRIMEZONE) – October 4, 2004 – Allenergy Incorporated (OTC: ALRY) today announced it has put another Creek County well into production.

Allenergy currently holds approximately 5,000 acres of oil and gas leases in Creek County, Oklahoma. On the company’s Silver City lease, completion personnel put the existing Fowler #1-A well “on pump” and Allenergy is pleased to report immediate accelerated oil production fully repaid all completion costs within three days.

Evaluation studies have further identified and selected four additional existing wells on Creek County leases that are now scheduled for re-completion. The first two (the Miller #B-2 well on the Markwell-Blair lease and the Briggs #1 well on the Silver City lease) will be put on pump and back into accelerated production within the next three weeks. Evaluation studies are also in progress for additional leases and more existing wells are being slated for recompletion.

Based on recent successes, such Allenergy has decided it is in the shareholders best interest to maintain full and total focus on the company’s core business of both oil and gas production. Therefore, even though Allenergy announced on February 3, 2005 it had signed an initial Acquisition Agreement to acquire 100% of Costaco, Inc., both parties were mutually unable to agree upon the terms and conditions of the purchase on or before March 15, 2004 (as required by the Acquisition Agreement).

Accordingly, both parties are mutually released from any and all liabilities and/or obligations related to this agreement and – unless or until they agree to and execute a final definitive and binding Purchase Agreement – both Allenergy, Inc. and Costaco, Inc. are mutually released from any and all liabilities and/or obligations pertaining to the Acquisition Agreement and their status remains the same as if such agreement had never existed.

About Allenergy
Allenergy was incorporated in Oklahoma in February 1989 as a closely held company for various long-term oil and gas leases for investment purposes only. In 1997, new management refocused on oil field service work and increasing oil and gas production on existing leases. In February 2001, Allenergy became a public company (ALRY) and turned full attention to oil production, drilling and exploration, and natural gas drilling and development. In late 2002, Allenergy also launched a developmental investor-participation Drilling and Exploration Program. Today, production of both oil and gas is steadily increasing, initial investor-participation wells are in final stages of completion and the company is actively engaged in growth through acquisition. The convergence of record price for both oil and natural gas and the company’s current drive for increased rate of production are anticipated to create an era of unprecedented rapid growth and profitability.

Note: Except for historical information contained herein, the statements in this release are forward looking statements that are made pursuant to the Safe Harbor provision of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause the company’s actual results in future periods to differ materially from forecasted results. Such risks and uncertainties include, but are not limited to; market conditions, competitive factors, the ability to successfully complete additional financings and other risks.

For information write: Allenergy Inc.,1820 East Garry Avenue, Suite 111, Santa Ana, CA 92705, phone 949-955-1411. Email: jcallenergy@aol.com or visit http://allenergyinc.com.

August 25, 2004

Dear Shareholder:

You may be wondering why Allenergy has recently released a limited amount of news. In early 2003, the decision was made to switch the primary focus from oil field service work to full oil and gas production by: (1) further developing existing oil and gas leases to increase daily production, (2) stepping-up the investor-participation Drilling & Exploration program, (3) continuing the acquisition of new oil and gas leases, (4) bringing on new oil field management personnel, and (5) accelerating the company’s overall acquisition / expansion program.

Over the last 18 months a great deal has transpired. We have completed numerous oil field service work contracts – both with individual companies and the State of Oklahoma – thus winding down this aspect of our operations.

In turn, and also during this same period, Allenergy began accomplishing the goals noted above: (1) We have further developed existing oil and gas leases and are steadily increasing daily production, (2) we have accelerated the investor-participation Drilling & Exploration program and are now bringing wells online, (3) we are continuing the acquisition of new oil and gas leases, (4) we have hired new oil field management personnel and contracted new petroleum technology experts, and (5) as we have greatly accelerated the company’s overall acquisition / expansion program.

The following press release was sent out via nationwide wire services at 5:00 AM PDT (8:00 AM EDT) on Wednesday, August 25th addressing some of these issues. It is the first in what is intended to be an on-going series of such announcements in the weeks and months ahead.

Today, with excellent staffing, ever-increasing production and the exciting acquisition opportunities now available to us, Allenergy is poised for some of the most dramatic growth in our company’s history. I look forward to bringing you more good news in the very near future. Thanks for your continued support.

Sincerely,

Rodger W. Garrity
President

FOR IMMEDIATE RELEASE

Allenergy Purchases Premium Gas Lease
in Okmulgee County Oklahoma

SANTA ANA, Calif. – (PRIMEZONE) – August 25, 2004 – Allenergy Incorporated (OTC: ALRY) today announced it has purchased a 430-acre premium gas lease in Okmulgee County located in northeastern Oklahoma.

Referred to as the “Kelly Lease,” the parcel contains ten wells – two of which are free-flowing and eight that are fully equipped, shut-in and ready to be brought online and into production. There are also eight to ten additional developmental sites on this lease.

The property is adjacent to the highly-productive Okfuskee County area which has multiple producing zones and where the brand new “Caney Shale” zone is currently being tested. This same area also produces abundant coalbed methane gas. The Kelly lease was purchased on a three-year note that will be paid with approximately 15-percent of gross production.

Allenergy President Rodger W. Garrity states, ” It is an exceptional opportunity, as the equipment alone has a higher replacement value than the cost of the note.
This acquisition meets our current expansion criteria and objective – which is increasing the existing rate of production and putting new wells into production on both newly acquired leases and those presently owned by Allenergy.”

“We are also in negotiations on a number of other leases,” Garrity adds, “and anticipate the announcement of more new acquisitions in the very near future.”

An important aspect of the restructured Allenergy acquisition team is the addition of Larry Sanford as Vice President of Field Operations. He has 20-years experience in all aspects of the oil industry, and has successfully completed more than 600 wells throughout Oklahoma and Kansas. Since joining the company April 1st, Mr. Sanford and his primary field crew have been putting investor wells into production and increasing rate of production on existing company leases – with notable success, especially within the last 30-days.
Mr. Sanford has also been appointed to the Board of Directors of Allenergy Inc.

Allenergy’s accelerated expansion program also includes contracting Consulting Engineer Doug Byford, who received a degree in Pertroleum Engineering Technology from Oklahoma State University (Stillwater, OK) in 1985. Mr. Byford is also the owner/operator of Oklahoma Oil Tactics, Inc. and is a seasoned operator of numerous producing oil and gas properties located in Oklahoma.

About Allenergy
Allenergy was incorporated in Oklahoma in February 1989 as a closely held company for various long-term oil and gas leases for investment purposes only. In 1997, new management refocused on oil field service work and increasing oil and gas production on existing leases. In February 2001, Allenergy became a public company (ALRY) and turned full attention to oil production, drilling and exploration, and natural gas drilling and development. In late 2002, Allenergy also launched a developmental investor-participation Drilling and Exploration Program. Today, production of both oil and gas is steadily increasing, initial investor-participation wells are in final stages of completion and the company is actively engaged in growth through acquisition. The convergence of record price for both oil and natural gas and the company’s current drive for increased rate of production are anticipated to create an era of unprecedented rapid growth and profitability.

Note: Except for historical information contained herein, the statements in this release are forward looking statements that are made pursuant to the Safe Harbor provision of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause the company’s actual results in future periods to differ materially from forecasted results. Such risks and uncertainties include, but are not limited to; market conditions, competitive factors, the ability to successfully complete additional financings and other risks.

For information write: Allenergy Inc.,1820 East Garry Avenue, Suite 111, Santa Ana, CA 92705, phone 949-955-1411. Email: jcallenergy@aol.com or visit http://allenergyinc.com.

Reminder:
Please provide your e-mail address where indicated at the top of this page.
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February 3, 2004

Dear Shareholder:

Allenergy Incorporated (OTC:ALRY) today announced it has signed an initial acquisition agreement to purchase 100 percent of Costaco Incorporated, a 20-year old full service travel provider and recognized leader in the cruise industry.

Costaco, Inc., headquartered in San Diego, California, is the Parent Corporation of Costa Travel, Only Fun Vacations, Ask about cruises.com and “The Travel Insider” syndicated radio program.

In addition to a flawless reputation and being well known throughout the travel industry, Costa Travel has an experienced management team and more than 2,750 outside independent travel agents who create large volume travel bookings that generate exceptional buying power and highly competitive pricing.

Costa Travel has built strong relationships with travel industry leaders -- such as Royal Caribbean, Carnival Cruises, Apple Vacations, Vacations.com and Travel Zoo (to name but a few) – and has earned numerous “net fare” contracts, which are rarely available.

With current annual revenues over $10,000,000, Costaco Inc. and its subsidiaries anticipate year-end 2004 revenues to range between $15,000,000 and $20,000,000 based on new signed contacts and active negotiations.

Allenergy president Rodger W. Garrity states, “Costaco and its related companies will be a wholly-owned subsidiary of Allenergy. This move is only the first acquisition in its corporate plan to build sales and earnings by purchasing on-going profitable businesses that operate outside the oil and gas industry.”

Allenergy is an Oklahoma Corporation -- formed in 1986 -- specializing in Oil Production (Drilling and Exploration), Natural Gas (Drilling and Development) and the Acquisition of Oil and Gas Properties.

For information write: Allenergy Inc.,1820 East Garry Avenue, Suite 111, Santa Ana, CA 92705, phone 949-955-1411 or visit www.allenergyinc.com.

Sincerely,

Rodger W. Garrity
President

Note: Except for historical information contained herein, the statements in this release are forward looking statements that are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause the company’s actual results in future periods to differ materially from forecasted results. Such risks and uncertainties include, but are not limited to; market conditions, competitive factors, the ability to successfully complete additional financings and other risks.

May 27, 2003

Dear Shareholder:

The investor-participation Drilling and Exploration Program announced late last year made good progress in spite of first, excessive rains with flooding and more recently severe tornado activity (some of the worst in nearly 100 years). Allenergy completed drilling the first two wells in Sooner Trend, Oklahoma in April of 2003. Both are located in Logan County – in the Southwest Crescent Oilfield – where oil production from the Mississippi Limestone (formation) is well established.

The initial well, Rupp Family #1 (located NE/4 of section 31-TI7N-R4W) was drilled to a total depth (TD) of 7,110-feet and has a total of 234-feet of net pay in the Mississippi Limestone. Additional pay zones were identified in both the Oswego and Checkerboard Limestone.

Based on petrophysical log analysis and production history from offset wells, Rupp Family #1 is estimated to have 1.46 billion cubic feet (BCF) of gas reserves in the Mississippi Limestone. With spot prices hovering around $5.90 per thousand cubic feet (MCFG), this equates to gross revenues of $7.592 million.

The second well in this program, Rodger 1-33 (located SE/4 of section 33-TI7N-R4W – just two miles East of Rupp Family #1) was drilled to a TD of 7,139-feet and has a total of 66-feet of next pay zone in the Mississippi Limestone. Reserves for this well are estimated to be .77 BCF with anticipated gross revenues of $4 million at today’s spot prices.

Both wells are now ready for completion and “Assignment of Oil & Gas Interest” documents are being prepared for recording with the County Clerk’s office in Logan County, OK. Upon their return, the assignment documents will be forwarded to respective interest owners in the Rupp #1 and Rodger 1-33 wells.

Allenergy is also moving forward with company-owned recompletion projects. We are currently completing the Bierig #28-9 (mentioned in our last update) located on the Northern shelf of the Anadarko Basin in Major County, OK. Our company acquired this well in Fall 2002 from Kaiser Francis who had abandoned the well after attempting to complete the Mississippi Limestone with only an acid stimulation. Allenergy instead fracture treated the Mississippi with approx. 5,000 barrels of slick water to stimulate production.

While testing of Bierig #28-9 is still underway, initial flow rates are anticipated to be between 500 MCFGD (thousand cubic feet of gas per day) plus 68 BCPD (barrels of condensate per day) and 2000 MCFGD plus 32 BCPD. Analysis of production histories from offset wells and petrophysical logs suggest reserves may be as high as 1.1 BCFG (billion cubic feet of gas) and 6,000 barrels of gas condensate. Bierig #28-9 will be on-line soon pending installation of a pump jack and connection to a gas pipeline.

Petroleum Geologist James W. Roberts has also been retained to work with Allenergy Operations Manager Jim Welch in the Oklahoma City office. Mr. Roberts has 25-years experience as a professional petroleum and ground water geologist. His experience ranges from well-site geology, prospect generation and evaluation to performing geological, engineering and economic due diligence assessments of operated and non-operating oil and gas properties – as well as environmental assessments of both up- and down-stream petroleum facilities.

He recently completed a regional subsurface study covering 2,000 square miles in Central Oklahoma for the Oklahoma Corporation Commission (OCC) and Ground Water Protection Council (GWPC). The project – helping OCC and petroleum operators establish casing depth-setting requirements for compliance with underground injection control (UIC) regulations – was funded by the U.S. Deptartment of Energy.

Mr. Roberts has worked with numerous major oil companies – such as Amoco Production Company, Anadarko Petroleum Corporation, Baroid Petroleum Services and TXO Production Corporation. His duties for Allenergy will include (but are not limited to) performance of reserves and economic evaluations, geological mapping and prospecting, preparation of well drilling and completion and work-over costs – as well as supervision of well drilling and completion operations.

Allenergy has also retained a petroleum Engineer to work with Messrs. Welch and Roberts – and this team is now actively working to determine the best site completion technology and treatment for each of the above mentioned wells.

They will also establish accurate drilling and completion costs and budgets for both future projects and those now in progress. The Operations Management Team is also conducting a top-to-bottom portfolio analysis of Allenergy holdings and will make recommendations on any leases which should be slated for divestiture.

Today, with excellent staffing, ever-increasing production and the exciting acquisition opportunities now available to us, Allenergy is poised for some of the most dramatic growth in our company’s history. I look forward to bringing you more good news in the very near future. Thanks for your continued support.

Sincerely,

Rodger W. Garrity
President

Note: Except for historical information contained herein, the statements in this release are forward looking statements that are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause the company’s actual results in future periods to differ materially from forecasted results. Such risks and uncertainties include, but are not limited to; market conditions, competitive factors, the ability to successfully complete additional financings and other risks.

March 3, 2003

Dear Shareholder:

A great deal of progress has been made in many areas since our last update.

In November 2002 Allenergy announced its new investor-participation Drilling and Exploration Program, created to maximize cash flow by bringing as many producing wells on-line in the shortest time possible.

Drilling of the first well in this program (known as Rupp Family #1 located in the Southwest Crescent Field in Logan County, Oklahoma) began January 26th and continued 24-hours a day until the drilling operation was successfully completed on February 14, 2003.

It is now in the final phase of completion and efforts are underway to boost its rate of production and bring it "on-line" as a producing well. On February 15th formations were logged to identify producing and non-producing formations and to determine which zones offer the most promise to initially open and develop for optimum oil and gas production.

Geological testing revealed good results at the top of the Viola Lime strata and within the complete formation of the Hunton Lime (155-foot thick and 6,800-foot deep), which are both expected to be good producers. These two zones will be developed in unison. A second option, considered by our Geological and Field Drilling Supervisory team, is the Mississippi Lime formation (approx. 450-foot thick and 6,300 to 6,750-foot deep). It too is highly promising.

Over the next few weeks, a completion unit and perforation crews will be brought in to "frac" the well (ie: a technique that "fractures" the formations) which increases oil and gas flow and overall well production. Within weeks, Rupp Family #1 is anticipated to be on-line and producing.

This project is only the first of a number of investor-participation developmental oil and gas wells currently planned on several leases (with existing production) acquired specifically for this program. Originally intended to facilitate only 30 such projects, recent lease acquisitions have allowed Allenergy to expand the Drilling and Exploration Program to include up to 100 investor-participation oil and gas wells over the months and years ahead.

Drilling equipment from Rupp Family #1 was moved directly onto the second project in the program—the Rodger #1-33 well (approx. two miles away)—where the process will be repeated all over again.

Investor participation in the Drilling and Exploration Program is rapidly gaining momentum and wells number one, two and three are fully funded—and expectations for oil and gas revenues generated by this program, both for Allenergy and individual investors, continues to grow.

In August 2002, Allenergy also acquired a parcel of leases bearing ten oil and gas wells—(which were drilled, but not equipped). We are in the process of bringing these sites on-line and into production as well.

The first of these ten, Buckles #1A23, was "frac"-ed (fractured) on February 7th and this well is expected to be on-line and producing in a matter of days.

Allenergy crews then immediately moved to second "drilled, but not equipped" well—the Beirig #28-9 (on another site not inclusive of the ten noted above)—which was "frac"-ed on February 10th, and it too is expected to be on-line and producing in one to two weeks.

In light of steadily rising oil and gas prices, Allenergy is concentrating on both
its investor-participation Drilling and Exploration Program and bringing the remaining company-owned ten wells (mentioned above) on-line—in an accelerated effort to maximize cash flow and increase earnings-per-share as rapidly as possible.

In addition, Allenergy has numerous other projects now underway (such as Beirig #28-9) and we will keep you informed as to their progress as it develops.

This is truly an exciting period for the company and we look forward to bringing you more encouraging and positive information in the very near future. Thanks again for your interest, patience and continued support.

Sincerely,
Rodger W. Garrity
President

Note: Except for historical information contained herein, the statements in this release are forward looking statements that are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause the company's actual results in future periods to differ materially from forecasted results. Such risks and uncertainties include, but are not limited to; market conditions, competitive factors, the ability to successfully complete additional financings and other risks.

November 7, 2002

Dear Shareholder:

As you know, until recently, Allenergy was predominately an oil field service company with a sizeable amount of oil lease holdings. But, due to the increasing price of oil (and growing demand for domestically produced oil) we have switched our focus to maximizing production on our own leases and to the acquisition of new lease holdings.

Since July, we have been completing any and all contractual obligations for plugging and oil field service work, and as of this date we have just completed the last of these projects. With this, our oil field service crews are now fitting and installing equipment full-time on all existing and newly acquired leases—thus steadily and dramatically increasing daily oil production on a consistent basis.

At present the company owns approximately 45,000 acres of oil leases with over 1,000 wells—which we are now actively putting into production, by installing equipment or through swabbing, while some are actually free-flowing.

Within the next few weeks, two re-assigned crews will be working full-time in Mannford, Oklahoma—solely dedicated to bringing more wells online and we foresee notable progress on a daily basis. This is in addition to the full-time crew now working up in Independence, Kansas.

Bottom-line: From this point forward, Allenergy will have a number of crews out working every day to bring more wells online—for both existing and newly acquired leases—and daily/weekly/monthly oil production and resulting revenues will soon reflect these increased capacities. And as income and more working capital become available, we will bring in additional outside crews to speed this process.

As a fully dedicated operating company, Allenergy is also simultaneously initiating an exciting drilling and developmental program for as many as 30 new wells. The first two such programs, with lucrative tax incentives and high potential ROI, are now available for investor consideration. And again, proceeds from these projects will also benefit the current drive to outfit leases and increase daily oil production.

Also bolstering the restructuring of operations and redirection of focus is the on-going daily efforts taking place in the Oklahoma City office. In addition to landman Jim Welch thoroughly reviewing county records for all lease holdings (both existing and newly acquired) for clear title and royalty interest agreements, we have added the expertise of petroleum geologist Jim Roberts. Initially he is identifying and assessing potential new reserves within recently acquired leases for our new drilling and developmental program.

In addition, we have engaged two outside firms to prepare a comprehensive report of any and all probable, recoverable and proven reserves for every lease currently being held by Allenergy—which soon will be made available.

Allenergy is fully committed to oil production drilling and exploration, natural gas drilling and development and the acquisition of new oil and gas lease properties. This is truly an exciting period for our company and we look forward to bringing you a great deal more encouraging and positive information in the very near future.

Thanks again for your interest, patience and continued support.

Sincerely,
Rodger W. Garrity
President

Note: Except for historical information contained herein, the statements in this release are forward looking statements that are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause the company's actual results in future periods to differ materially from forecasted results. Such risks and uncertainties include, but are not limited to; market conditions, competitive factors, the ability to successfully complete additional financings and other risks.

August 2, 2002

Dear Shareholder:

Allenergy has acquired numerous well bore rights on gas properties in Northwest Oklahoma and Southwest Kansas. There are 11 gas wells total, nine of which are in the Hugoton field—one of the largest natural gas fields in the world—with two more wells in the adjacent Cheyenne Valley field in Oklahoma. The wells are currently being evaluated and will soon be fully operational.

As for the two leases recently purchased in Independence, Kansas, (both the 840-acre and 3008-acre parcels) clear title has now been verified and finalized and Allenergy is actively moving forward with crews to bring more wells online. Oil production is steadily increasing and more wells are scheduled to begin producing in the months ahead.

To better manage and oversee our steadily increasing oil and gas production, Allenergy has opened a Field Operations Office in Oklahoma City, Oklahoma. Located on the 12^th floor of the Founders Tower hi-rise, we now have over 1,000-square feet of office space in this well-known oil industry-oriented building.

Also James D. Welch, an experienced petroleum land man and oil production expert, has joined Allenergy to head up this new office and oversee day-to-day operations. He is currently engaged in filings with the State Corporation Commission—verifying clear title for new acquisitions—as well as managing oil and gas production and maintaining well records for all new and existing leases.

Allenergy remains dedicated to growth through acquisition and is currently evaluating numerous opportunities—ranging from buying new oil and gas leases to purchasing a 100-mile oil pipeline. Field operations management also plans to launch a full review aimed at both improving and maximizing production for all existing leases—beginning with the Mannford, Oklahoma operation.

This is an exciting period for Allenergy. We look forward to bringing you a great deal more encouraging and positive information in the very near future. Thanks again for your interest, patience and continued support.

Sincerely,
Rodger W. Garrity
President

Note: Except for historical information contained herein, the statements in this release are forward looking statements that are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause the company's actual results in future periods to differ materially from forecasted results. Such risks and uncertainties include, but are not limited to; market conditions, competitive factors, the ability to successfully complete additional financings and other risks.

June 17, 2002

Dear Shareholder:

In our investor letter of May 27 we announced Allenergy had acquired 840-acres of oil leases in the Independence, Kansas area—with reserves of 2,377,938 barrels.

As this lease surrounds the historic homestead and school house that inspired the Little House on the Prairie book and television series - it too bears the same name.

Allenergy has produced a short five-minute "home-grown" video for investors, shot on location with oil consultant and production manager, Brian Boeckman, describing plans for operating and developing this site—as well as the drilling of additional wells to increase production and earnings. If you would like to receive a copy of this video please call the corporate office or your investor relations contact.

In addition to this acquisition, we are pleased to announce Allenergy has purchased another 3008-acres directly adjacent to the above "Little House on the Prairie" project.

Together, when put into full production, these sites should produce approximately 500 barrels per day. These combined leases are already producing oil into our tank storage systems and 11 wells can also produce coal methane natural gas. There are also hundreds of new drilling sites available for oil and gas production.

Along with consultant and production manager, Brian Boeckman, Allenergy will begin production upgrades on our existing leases in Tulsa County, Creek County and Mannford, Oklahoma as well. We will also be installing gas meters on many of our wells to position ourselves in the lucrative coal methane natural gas market.

This is all very exciting news for Allenergy and its shareholders—and there are even more exciting announcements in the making.

For this reason, we are requesting all shareholders to provide their e-mail address for even faster updates—which reduces both postage and labor costs and benefits all.

Thanks again for your patience and continued support. Stay tuned...

Sincerely,
Rodger W. Garrity
President

Note: Except for historical information contained herein, the statements in this release are forward looking statements that are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause the company's actual results in future periods to differ materially from forecasted results. Such risks and uncertainties include, but are not limited to; market conditions, competitive factors, the ability to successfully complete additional financings and other risks.

May 27, 2002

Dear Shareholder:

In our last investor update letter (March 25) we announced that Allenergy was in the process of purchasing a 780 acre fully equipped lease in the Independence, Kansas area.

Today we are pleased to announce that Allenergy has completed this purchase, and that it is - in actuality - 840 acres rather than 780 as originally noted. This project, located in Montgomery County (Kansas), has 62 existing fully-equipped producing wells, 120 injector wells and one disposal well. However, we intend to convert and re-complete 80 of the current injector sites into producing wells to recover more oil production - thus making a total of 142 producing wells.

When these injector wells are converted over to oil, the production should be dramatically increased. The Reserve Report indicates oil reserves of 2,377,938 barrels; the resulting yield would be approximately $50,000,000 at today's current market value.

Allenergy has all Deep Drilling rights to drill 32 new wells, consisting of 11 natural gas and 21 coal bed methane gas wells, which have attractive tax credits and documented long life reserves.

It should be noted that our acreage and lease adjoins Devon Energy on three sides (which is the largest independent oil producer in the United States - trading symbol DVN). This acreage also surrounds the famed "Little House on the Prairie" structure - of both the Laura Engle Wilder home and school historical site called the "Sunnyside School and Wayside Post Office" - located approximately seven miles due south of Independence, Kansas.

Allenergy is in the process of acquiring several thousand additional acres in the same locale - which we will be announcing shortly.

This is all very exciting news for both Allenergy and its shareholders. Thanks again for your patience and continued support.

Sincerely,
Rodger W. Garrity
President

Note: Except for historical information contained herein, the statements in this release are forward looking statements that are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause the company's actual results in future periods to differ materially from forecasted results. Such risks and uncertainties include, but are not limited to; market conditions, competitive factors, the ability to successfully complete additional financings and other risks.

March 25, 2002

Dear Shareholder:

Allenergy is in the process of purchasing a 780 acre fully equipped lease in the Independence, Kansas area for restricted stock and other considerations. The prior owner has spent in excess of $6.8 million to equip this impressive project, including substantial tank batteries and jacks. All wells are easily accessible and - with the addition of some new wells (which can be drilled on the property) - this lease is expected to have a dramatic impact on our company's oil production.

Engineering studies show 2,377,938 barrels in recoverable reserves - which (at today's $21.50 per barrel price) equates to $51,125,667 in potential revenue for Allenergy. This project is also located where extensive exploration for coal bed methylene is well underway - which we will take full advantage of and in which we intend to participate, as well.

With regard to the proposed acquisition of Ackara Corporation; upon completion of due diligence, we found the company's liabilities to be much larger than we were originally led to believe - and therefore, we have decided it is not in Allenergy's best interest to complete this transaction as previously planned.

Also, regarding the acquisition of the Northwest Louisiana lease, for now we will confine our operations to those areas where we have existing personnel and equipment so as to better maintain costs and thus maximize potential profit.

Finally, we have hired two new independent consultants. The first has 24-years oil industry experience and will be working with us to increase our oil production - a necessary move, as we believe oil prices will level off at a much higher price that could sustain for a number of years. The second is a new Web Master for the Allenergy Web site - for faster and more frequent updates to keep you better informed of on-going developments.

Overall, our oil field service business remains strong; however, during the last six months, receivables have climbed substantially. But we believe, as the economy continues to strengthen, this situation will improve as well.

Thanks again for your patience and support. More soon.

Sincerely,
Rodger W. Garrity
President

Note: Except for historical information contained herein, the statements in this release are forward looking statements that are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause the company's actual results in future periods to differ materially from forecasted results. Such risks and uncertainties include, but are not limited to; market conditions, competitive factors, the ability to successfully complete additional financings and other risks.

February 14, 2001

Dear Shareholder:

Here are a few new and exciting developments since our last update.

• We are pleased to announce that Allenergy Inc. stock began officially trading on the Over The Counter (OTC) market on February 2, 2001.
  

• The company has been assigned a new trading symbol by the National Association of Security Dealers (NASD). Whereby Allenergy Inc. stock was originally indicated as NRGY, it is now ALRY.
  

Thanks again for your patience and continued support. More soon.

Sincerely,
Rodger W. Garrity
President

Note: Except for historical information contained herein, the statements in this release are forward looking statements that are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause the company's actual results in future periods to differ materially from forecasted results. Such risks and uncertainties include, but are not limited to; market conditions, competitive factors, the ability to successfully complete additional financings and other risks.