Allied Energy, Inc. announced the following completion and production update for the Wallrath #1H Horizontal Oil Well located in Leon County, Texas, which was directed to a total measured depth (including horizontal drilling) of approximately 12,000 feet. During April 2011, the company contracted Schlumberger to perform a 15-stage stimulation procedure on the well. The procedure resulted in the use of over 2,000,000 lbs. of sand and approximately 30,000 barrels of liquids. Following the stimulation, the well flowed naturally at rates of up to 360 BOPD and was placed on pump in mid-June 2011. The current production of the well is approximately 150 barrels of oil per day. During the fourth quarter of 2011, the company drilled a second horizontal oil well in Leon County. The Champion Ranch #1H was drilled in late December 2011 to a total measured depth (including horizontal drilling) of approximately 12,000 feet, and is currently in the process of completion. The Wallrath #1H horizontal oil well and the Champion Ranch #1H horizontal oil well were drilled for certain general partnerships sponsored by the Company. Allied Energy, Inc. owns a nominal interest in each of the two above-referenced horizontal oil wells located in Leon County, Texas.