John teased Allen about her drinking while the two were onstage, to which Allen then retorted: "(Expletive) off, Elton! You know what? I'm 40 years younger than you and I have my whole life ahead of me!"
John then responded, "I can still snort you under the table," prompting Allen to say, "I don't know what you're talking about."
People.com said Allen addressed the matter on her MySpace blog Friday.
"Elton John and I are friends," she wrote. "I'm not defending my drunkenness because I don't need to. I'm 23. It was an awards ceremony. I drank the free champagne, how awful of me. ... Trying to create a feud on the other hand, and trying to make me out as being some rude little girl with a drink problem is just unfair. Elton and I exchanged jokes and there were no hard feelings at all. In fact, neither of us gave it a second thought."
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