TABLE OF CONTENTS



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|PART I.           |                                              |                                                                                                  |    |     
|                  | ITEM 1.
FINANCIAL STATEMENTS                 |                                                                                                  |    | 3    |  
|                  |                                              | Balance Sheets                                                                                   |    |      | 4 | 
|                  |                                              | Unaudited Statements of Income for the three months ended March 31, 2005 and March 31, 2004      |    |      | 5 | 
|                  |                                              | Unaudited Statements of Cash Flows for the three months ended March 31, 2005 and March 31, 2004. |    |      | 6 | 
|                  |                                              | Unaudited Notes to Financial Statements                                                          |    |      | 7 | 
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|                  | ITEM 2.
MANAGEMENT'S DISCUSSION AND ANALYSIS |                                                                                                  |    | 8    |  
|                  | ITEM 3.
CONTROLS AND PROCEDURES              |                                                                                                  |    | 12   |  
|PART II.          |                                              |                                                                                                  |    |     
|                  | ITEM 6.
EXHIBITS                             |                                                                                                  |    | 12   |  
|                  | SIGNATURES                                   |                                                                                                  |    | 13   |  
|INDEX TO EXHIBITS |                                              |                                                                                                  | 14 |     

### INDEX TO EXHIBITS

|Exhibit No. | Page No. | Description                                                                                                                                                                                                                                                                
|----------- | -------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|3(i)        | *        | Articles of Incorporation dated February 12, 2002 (incorporated by reference
                           to the Form 10-SB/A filed on April 21, 2003).                                                                                                                      
|3(ii)       | *        | Bylaws (incorporated by reference to the Form 10-SB/A filed on April 21, 2003).                                                                                                                                                                                            
|10(i)       | *        | Oil and Gas Well Operating Agreement between Allied and Allstate
                           Energy                                         Corporation dated May 1, 1996 (incorporated by reference to
                           the Form 10SB/A filed on April 21, 2003).
|10(ii)      | *        | Amendments to Operating Agreements between Allied and Allstate Energy Corporation dated May 10, 1996
                           (incorporated by reference to the Form 10SB/A filed on April 21, 2003).                                                                    
|10(iii)     | *        | Drilling Agreement between Allied and Allstate Energy Corporation dated March 4, 2002 (incorporated by
                           reference to the Form 10SB/A filed on April 21, 2003).                                                                                   
|10(iv)      | *        | Escrow Agreement between Ruairidh Campbell, Dr. Stewart Jackson, Yvonne Cole and Allied dated June 18, 1999
                           (incorporated by reference to the Form 10SB/A filed on April 21, 2003).                                                             
|10(v)       | *        | Form Gas Purchase Agreement (incorporated by reference to the Form 10SB/A filed on April 21, 2003).                                                                                                                                                                        
|10(vi)      | *        | Gas Contract between Allstate Energy Corporation and Dominion dated January 1, 2002 (incorporated by
                           reference to the Form 10SB/A filed on April 21, 2003).                                                                                     
|14          | *        | Code of Ethics adopted May 3, 2004 (incorporated by reference to the Form 10-KSB filed on May 26, 2004).                                                                                                                                                                   
|31          | Attached | Certification of the Chief Executive Officer and Chief Financial Officer pursuant to
       Rule 13a-14 of the Securities and Exchange Act of 1934 as amended, as adopted
       pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                 
|32          | Attached | Certification of the Chief Executive Officer and Chief Financial Officer
      pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the
      Sarbanes-Oxley Act of 2002.