INDEPENDENCE, Kan., Jan. 6 /PRNewswire-FirstCall/ --Allenergy, Inc. (Pink Sheets: ALRY), with an 18-year history in the oil and gas industry and current involvement in the multi-billion dollar oil and natural gas fields in Kansas and Oklahoma, today announces an updated report for its shareholders.

As oil prices dropped from their high in July 2008 by more than 70%, Allenergy took steps to ensure the success of the Company. Allenergy first prepared for the decline in oil prices by reducing expenses including reducing the payroll and cutting costs wherever possible.

Oil prices declined further to the point where it did not make sense to sell oil. Allenergy has tanked the oil from its production with the anticipation that prices will rise again. The plan seems to be working, as in the past few weeks oil has risen from its lowest price of $19.52 per barrel for Eastern Kansas oil set on December 19, 2008.

Additionally the company focused its efforts in servicing other companies' wells. These service contracts have allowed Allenergy to remain viable and not dependent on oil income.

Larry Sanford, CEO of Allenergy, states: 'We have taken the necessary steps to keep our cash flow in line with our expenses. We believe that oil prices will rise again at which time we will return to our efforts to generate profit from the discovery and sale of oil. Our shareholders should know: Allenergy remains viable.'

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.

    E&E Communications Paul Knopick (949) 707-5365
    pknopick@eandecommunications.com

SOURCE Allenergy, Inc.

Source: PR Newswire (January 6, 2009 - 9:30 AM EST)

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