# SECURITIES AND EXCHANGE COMMISSION

# Washington, D.C. 20549

# FORM 10-QSB/A

(Mark One)

[X] Quarterly report under Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly
 period ended September 30, 2003.

[ ] Transition report under Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition
 period from ____________ to ____________

``

``

|                                | 
|------------------------------- | 
|Nevada                          | 
|(State or other jurisdiction of | 
|incorporation or organization)  | 

``

``

Check whether the registrant: (1) filed all reports required to be filed by Section 13 or 15(d) of the
 Exchange Act during the past 12 months (or for such shorter period that the registrant was required
 to file such reports), and (2) has been subject to such filing requirements for the past 90 days

The number of outstanding shares of the registrant's common stock, $0.001 par value (the only class of
 voting stock), as of March 2, 2004 was 5,666,69

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TABLE OF CONTENTS



|                  |                                                             |                                                                                                                 |    |      |   | 
|----------------- | ----------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------- | -- | ---- | - | 
|                  |                                                             |                                                                                                                 |    | Page
|                  |                                                             |                                                                                                                 |    |     
|PART I.           |                                                             |                                                                                                                 |    |     
|                  | ITEM 1. FINANCIAL STATEMENTS                                |                                                                                                                 |    | 3    |  
|                  |                                                             | Balance Sheets                                                                                                  |    |      | 4 | 
|                  |                                                             | Unaudited Statement of Operations for the three and nine months ended September 30, 2003 and September 30, 2002 |    |      | 5 | 
|                  |                                                             | Unaudited Statement of Cash Flows for the nine months ended September 30, 2003 and September 30, 2002           |    |      | 6 | 
|                  |                                                             | Unaudited Notes to Financial Statements                                                                         |    |      | 7 | 
|                  |                                                             |                                                                                                                 |    |      |   | 
|                  | ITEM 2. MANAGEMENT'S DICUSSION AND ANALYSIS                 |                                                                                                                 |    | 8    |  
|                  | ITEM 3. CONTROLS AND PROCEDURES                             |                                                                                                                 |    | 10   |  
|PART II.          |                                                             |                                                                                                                 |    |     
|                  | ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS |                                                                                                                 |    | 11   |  
|                  | ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K                    |                                                                                                                 |    | 11   |  
|                  | SIGNATURES                                                  |                                                                                                                 |    | 12   |  
|INDEX TO EXHIBITS |                                                             |                                                                                                                 | 13 |     

2



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# PART I

# ITEM 1. FINANCIAL STATEMENTS

As used herein, the term Allied refers to Allied
 Resources, Inc., a Nevada corporation and its predecessors, unless otherwise indicated. In the opinion
 of management, the accompanying unaudited financial statements included in this Form 10-QSB/A reflect
 all adjustments (consisting only of normal recurring accruals) necessary for a fair presentation of
 the results of operations for the periods presented. The results of operations for the periods presented
 are not necessarily indicative of the results to be expected for the full year.

3

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ALLIED
 RESOURCES, INC.

BALANCE SHEETS

`ASSETS                                             September 30,           December 31,
                                                                                          2003                   2002
                                                                                      (Unaudited)             (Audited)
                                                                                   -------------------    -------------------
Current assets:
    Cash                                                                        $             315,022                247,844
    Accounts receivable                                                                        69,625                 35,458

    Prepaid expenses                                                                                -                  5,800
                                                                                   -------------------    -------------------

      Total current assets                                                                    384,647                289,102

Oil and gas properties, net                                                                   794,984                852,984
Deposits                                                                                      183,376                116,417
                                                                                   -------------------    -------------------

          Total assets                                                          $           1,363,007              1,258,503
                                                                                   ===================    ===================

                   LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

   Accounts payable                                                             $                   -                  7,431
                                                                                   -------------------    -------------------


      Total current liabilities                                                                     -                  7,431
                                                                                   -------------------    -------------------

Asset retirement obligation                                                                   127,571                122,960
                                                                                   -------------------    -------------------


Commitments and contingencies                                                                       -                      -

Stockholders' equity:
   Common stock, $.001 par value; 50,000,000 shares
      authorized, 5,666,691 issued and outstanding                                              5,667                  5,667
   Additional paid-in-capital                                                               9,717,288              9,717,288

   Accumulated other comprehensive income                                                         616                    503
   Accumulated deficit                                                                    (8,488,135)            (8,595,346)
                                                                                   -------------------    -------------------

          Total stockholders' equity                                                        1,235,436              1,128,112
                                                                                   -------------------    -------------------

          Total liabilities and stockholders' equity                            $           1,363,007              1,258,503
                                                                                   ===================    ===================

                              The accompanying notes are an integral part of these financial statements.`

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ALLIED RESOURCES, INC

UNAUDITED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
 INCOME

`Three Months Ended                      Nine Months Ended
                                                                        September 30,                            September 30,
                                                             -------------------------------------    -------------------------------------
                                                                   2003                2002                2003                 2002
                                                             -----------------   -----------------    ----------------    -----------------
Oil and gas revenues                                     $            127,310             113,222             452,430              321,315
                                                             -----------------   -----------------    ----------------    -----------------
Operating expenses:
   Production costs                                                    65,683              59,399             200,227              185,458
   Depletion                                                           19,000              19,138              58,000               57,411
   General and administrative expenses                                 19,168              54,056              86,992              131,845
                                                             -----------------   -----------------    ----------------    -----------------
                                                                    103,851             132,593              345,219             374,714
                                                             -----------------   -----------------    ----------------    -----------------
          Income (loss) from operations                               23,459            (19,371)             107,211             (53,399)

Interest income                                              -                   -                    -                   1,411
                                                             -----------------   -----------------    ----------------    -----------------
          Income (loss) before provision
             for income taxes                                          23,459            (19,371)             107,211             (51,988)

Provision for income taxes                                                  -                   -                   -                    -
                                                             -----------------   -----------------    ----------------    -----------------
          Net income (loss)                              $            23,459            (19,371)             107,211             (51,988)
                                                             =================   =================    ================    =================
Other comprehensive income (loss):
   Foreign currency translation
     adjustment, net of taxes of

     $0, $0, $0 and $0                                                   (31)                   -                 113                    -
                                                             -----------------   -----------------    ----------------    -----------------
           Total comprehensive income                    $             23,428            (19,371)             107,324             (51,988)
                                                             =================   =================    ================    =================
Income (loss) per common share -
   basic and diluted                                     $                .00               (.00)                 .02                (.01)
                                                             =================   =================    ================    =================
Weighted average common shares -
   basic and diluted                                                5,667,000           5,667,000           5,667,000            5,667,000
                                                             =================   =================    ================    =================

                              The accompanying notes are an integral part of these financial statements.`

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ALLIED
 RESOURCES, INC

UNAUDITED STATEMENTS OF CASH FLOWS

Nine
 Months Ended September 30, 2003 and 2002

`2003                 2002
                                                                              -----------------    -----------------
Cash flows from operating activities:
Net income (loss)                                                         $            107,211             (51,988)
   Adjustments to reconcile net income (loss) to
     net cash used in operating activities:
       Depletion and amortization                                                       58,000               57,411
       Accretion expense                                                                 4,611                6,847
       (Increase) decrease in:
          Accounts receivable                                                         (34,167)             (29,987)
          Prepaid expenses                                                               5,800             (20,700)
          Deposits                                                                    (66,959)             (45,174)
       Increase (decrease) in:
          Accounts payable                                                             (7,431)               19,380
                                                                              -----------------    -----------------

            Net cash provided by (used in)
               operating activities                                                     67,065             (64,211)
                                                                              -----------------    -----------------


Cash flows from investing activities:

Acquisition of oil and gas properties                                                        -            (139,552)
                                                                              -----------------    -----------------


            Net cash used in investing activities                                            -            (139,552)
                                                                              -----------------    -----------------



Cash flows from financing activities:                                                        -                    -
                                                                              -----------------    -----------------


Change in accumulated other comprehensive income                                           113                  573
                                                                              -----------------    -----------------

           Net increase (decrease) in cash                                              67,178            (203,190)

Cash, beginning of period                                                              247,844              452,552
                                                                              -----------------    -----------------

Cash, end of period                                                       $            315,022              249,362
                                                                              =================    =================

                              The accompanying notes are an integral part of these financial statements.`

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# ALLIED RESOURCES, INC.

NOTES
 TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

# September 30, 2003

Note 1  Basis of Presentation

The accompanying unaudited condensed financial statements
 have been prepared by management in accordance with the instructions in Form 10-QSB and, therefore,
 do not include all information and footnotes required by generally accepted accounting principles and
 should, therefore, be read in conjunction with Allieds Form 10-KSB/A-3 for the year ended December
 31, 2002, filed with the Securities and Exchange Commission. These statements do include all normal
 recurring adjustments which Allied believes necessary for a fair presentation of the statements. The
 interim operations are not necessarily indicative of the results to be expected for the full year ended
 December 31, 2003.

Note 2  Additional Footnotes Included By Reference

Except as indicated in Notes above, there have been
 no other material changes in the information disclosed in the notes to the financial statements included
 in Allieds Form 10-KSB/A-3 for the year ended December 31, 2002, filed with the Securities and Exchange
 Commission. Therefore, those footnotes are included herein by reference.

7

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# ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS

When used in this discussion, the words believes,
 anticipates, expects, and similar expressions are intended to identify forward-looking statements.
 Such statements are subject to certain risks and uncertainties, which could cause actual results to
 differ materially from those projected. Readers are cautioned not to place undue reliance on these forward-looking
 statements, that speak only as of the date hereof. Allied undertakes no obligation to republish revised
 forward-looking statements to reflect events or circumstances after the date hereof or to reflect the
 occurrence of unanticipated events. Readers are also urged to carefully review and consider the various
 disclosures made by Allied that attempt to advise interested parties of the factors which affect Allieds
 business, in this report, as well as Allieds other periodic reports on Forms 10-KSB, 10-QSB and 8-K
 filed with the Securities and Exchange Commission.

# General

Allied is an independent oil and natural gas producer
 involved in the exploration, development, production and sale of oil and gas derived from properties
 located in Calhoun and Ritchie counties, West Virginia.

# Results of Operations

During the period from July 1, 2003 through September
 30, 2003, Allied has been engaged in overseeing the operation of its oil and gas assets by an independent
 operator, Allstate Energy Corporation. For the three and nine month periods ended September 30, 2003
 Allied realized net income from operations as a result of an increase in revenue and a decrease in general
 and administrative expenses as compared to the prior three and nine month periods ended September 30,
 2002.

# Revenue

Revenue for the three months ended September 30, 2003
 increased to $127,310 from $113,222 for the three month period ended September 30, 2002, an increase
 of 12%. Revenue for the nine months ended September 30, 2003 increased to $452,430 from $321,315 for
 the nine month period ended September 30, 2002, an increase of 41%. The increase in revenues over the
 periods is primarily attributable to a general increase in oil and natural gas prices over the respective
 periods. Allied realized $3.05 per MCFE over the nine month period ended September 30, 2003 as compared
 to $2.93 per MCFE in over the comparable period in 2002, an increase of 4%. Allied anticipates that
 revenue will continue to fluctuate with oil and natural gas prices over future periods.

# Income

Net income for the three months ended September 30,
 2003 increased to $23,459, from a net loss of $19,371 for the three month period ended September 30,
 2002, an increase of 221%. Net income for the nine months ended September 30, 2003 increased to $107,211
 from a net loss of $51,988 for the nine month period ended September 30, 2002, an increase of 306%.
 The significant increase in income as compared to losses over the respective periods is attributable
 to an increase in revenues and a substantial decrease in general and administrative expenses. Allied
 anticipates that net income may continue to fluctuate over future periods based on revenues and general
 and administrative expenses.

8

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# Expenses

General and administrative expenses for the three months
 ended September 30, 2003, decreased to $19,168 from $54,056 for the three month period ended September
 30, 2002, a decrease of 65%. General and administrative expenses for the nine months ended September
 30, 2003 decreased to $86,992 from $131,845 for the nine month period ended September 30, 2002, a decrease
 of 34%. The decrease in general and administrative expenses over the periods can be attributed to a
 decrease in costs associated with Allieds Form 10-SB registration. During the nine month period ended
 September 30, 2003 Allied incurred costs of $7,362 for an audit of its financial statements including
 the review of related disclosure documentation and Allieds response to comment letters as compared
 to costs incurred of $35,000 for assistance in the preparation of a Form 10-SB and $5,000 paid to Allieds
 auditing firm for identical services over the comparable period in 2002. Allied anticipates that general
 and administrative expenses incurred will remain relatively consistent over future periods.

Direct production expenses for the three months ended
 September 30, 2003, increased to $65,683 from $59,399 for the three month period ended September 30,
 2002, an increase of 11%. Direct production expenses for the nine months ended September 30, 2003, increased
 to $200,227 from $185,458 for the nine month period ended September 30, 2002, an increase of 8%. The
 increase in direct production expenses over the periods can be attributed to the increase in production.
 Allied expects that direct production expenses will remain relatively consistent with gross production
 over future periods.

Depletion expenses for the nine months ended September
 30, 2003 and September 30, 2002 were $58,000 and $57,411 respectively.

# Income Tax Expense (Benefit)

Allied has an income tax benefit resulting from net
 operating losses to offset operating profit.

# Impact of Inflation

Allied believes that inflation has had a negligible
 effect on operations over the past three years. Allied believes that it can offset inflationary increases
 in maintenance costs by increasing revenue and improving operating efficiencies.

# Liquidity and Capital Resources

Cash flow provided from operations was $67,065 for
 the nine months ended September 30, 2003, as compared to cash flow used in operations of $64,211 for
 the nine months ended September 30, 2002. The transition from cash flow used in operations to cash flow
 provided from operations over the comparative periods is primarily attributed to the realization of
 a net profit of $107,211 for the nine month period ended September 30, 2003 as compared to a net loss
 of $51,988 for the nine month period ended September 30, 2000, an increase of 306%. The realization
 of a net profit has had a significant positive impact on Allieds cash flow that stems from an increase
 in revenues over the period and a decrease in general and administrative expenses.

Cash flow used in investing activities for the nine
 month period ended September 30, 2003 was $0 as compared to $139,552 for the nine month period ended
 September 30, 2002. The investment activities in 2002 were comprised of $125,000 spent on drilling a
 new well (Anna Gill #3) and $14,552 spent on reworking two older wells in order to increase production.
 The expense of capital to increase production through a new well and enhance production from two existing
 wells was made to expand reserves and production in response to the depletion of Allieds assets.

9

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Cash flow generated from financing activities was $0
 for the nine months ended September 30, 2003 and $0 for the nine months ended September 30, 2002.

Allied has a working capital surplus of $384,647 as
 of September 30, 2003 and has funded its cash needs since inception with revenues generated from operations,
 debt instruments and private placements. Existing working capital and anticipated cash flow are expected
 to be sufficient to fund operations for the remainder of 2003 and 2004.

Allied has no current plans for the purchase or sale
 of any plant or equipment.

Allied has no current plans to make any changes in
 the number of employees.

# Critical Accounting Policies and Estimates

Accounting for Oil and Gas Property Costs. As more
 fully discussed in Note 1 to the consolidated financial statements, Allied (i) follows the full cost
 method of accounting for the costs of its oil and gas properties, (ii) amortizes such costs using the
 units of production method, and (iii) applies a quarterly full cost ceiling test. Adverse changes in
 conditions (primarily gas price declines) could result in permanent write-downs in the carrying value
 of oil and gas properties as well as non-cash charges to operations that would not affect cash flows.

Estimates of Proved Oil and Gas Reserves. An independent
 petroleum engineer annually estimates Allieds proven reserves. Reserve engineering is a subjective
 process that is dependent upon the quality of available data and the interpretation thereof. In addition,
 subsequent physical and economic factors such as the results of drilling, testing, production and product
 prices may justify revision of such estimates. Therefore, actual quantities, production timing, and
 the value of reserves may differ substantially from estimates. A reduction in proved reserves would
 result in an increase in depreciation, depletion and amortization expense.

Estimates of Asset Retirement Obligations. In accordance
 with SFAS No 143, Allied makes estimates of future costs and the timing thereof in connection with recording
 its future obligations to plug and abandon wells. Estimated abandonment dates will be revised in the
 future based on changes to related economic lives, which vary with product prices and production costs.
 Estimated plugging costs may also be adjusted to reflect changing industry experience. Increases in
 operating costs and decreases in product prices would increase the estimated amount of the obligation
 and increase depreciation, depletion and amortization expense. Cash flows would not be affected until
 costs to plug and abandon were actually incurred.

# ITEM 3. CONTROLS AND PROCEDURES

The Companys president acts both as the Companys
 chief executive officer and chief financial officer and is responsible for establishing and maintaining
 disclosure controls and procedures for the Company.

(a) Evaluation of Disclosure Controls and Procedures

Based on his evaluation as of September 30, 2003, the
 chief executive officer and chief financial officer has concluded that the Companys disclosure controls
 and procedures (as defined in Rule 13a-14(c) and 15d-15(e) of the Securities Exchange Act of 1934, as
 amended) are effective to ensure that information required to be disclosed by the Company in reports
 that the Company files or submits under the Securities Exchange Act, as amended is recorded, processed,
 summarized and reported within the time periods specified in the rules and forms of the Securities and
 Exchange Commission.

10

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(b) Changes in Internal Controls

Based on his evaluation as of September 30, 2003, the
 chief executive officer and chief financial officer has concluded that there were no significant changes
 in the Companys internal controls over financial reporting or in any other areas that could significantly
 affect the Companys internal controls subsequent to the date of his most recent evaluation, including
 any corrective actions with regard to significant deficiencies and material weaknesses.

# PART II

# ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

On August 29, 2003 the Company held an Annual Meeting
 of Shareholders to consider the election of Ruairidh Campbell, Dr. Stewart Jackson and Yvonne Cole as
 Company directors, the approval of managements decision to engage Jones Simkins L.L.P. as the Companys
 auditors for the year ending December 31, 2003 and granting the authority to the board of directors
 to adopt a stock option plan if it deems such action to be in the best interests of the Company. Proxies
 or votes presented in person representing 3,075,200 or 54.3% of the Companys issued and outstanding
 shares constituted quorum for the purpose of considering the matters presented.

The shareholders elected Ruairidh Campbell by a vote
 of 2,610,200 in favor and 0 against with 0 abstentions to the Companys board of directors, elected
 Dr. Stewart Jackson by a vote of 2,610,200 in favor and 0 against with 0 abstentions to the Companys
 board of directors and elected Yvonne Cole by a vote of 2,610,200 in favor and 0 against with 0 abstentions
 to the Companys board of directors.

The shareholders approved the appointment of Jones
 Simkins L.L.P. as the Companys auditors for the year ending December 31, 2003 by a vote of 2,610,200
 in favor and 0 against with 0 abstentions.

The shareholders granted the authority to the board
 of directors to adopt a stock option plan if it deems such action to be in the best interests of the
 Company by a vote of 2,610,200 in favor and 0 against with 0 abstentions.

# ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

|(a) |  | Exhibits Exhibits required to be attached by
 Item 601 of Regulation S-B are listed in the Index to Exhibits on page 13 of this Form 10-QSB/A, and
 are incorporated herein by this reference.
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) |  | Reports on Form 8-K.No reports on Form 8-K were
 filed during the period covered by this report.
|--- |  | ------------------------------------------------------------------------------------------------

11

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# SIGNATURES

In accordance with the requirements of the Exchange
 Act, the registrant caused this report to be signed on its behalf by the undersigned, hereunto duly
 authorized, this 2nd day of March 2004.

# ALLIED RESOURCES, INC.

/s/ Ruairidh Campbell

Ruairidh Campbell

Chief Executive Officer, Chief Financial Officer and
 Director

12

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### 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)                                                                  
|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 200
|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                                            

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