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.

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.

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.