Not only did Allied Energy Corp. (OTCMKTS: AGYP) close today 21.06% higher at $0.6295, shares traded reached 794,430 — a flurry well above the 428,172 average. AGYP even touched $0.65 in intraday trading. The shorts are watching a boutique oil and gas firm which specializes in reworking and re-completing existing oil and gas wells that have proven reserves. AGYP has broken out of its $0.51 resistance point and is nearing the $0.66 resistance level.
Will this rally continue from a focused small oil and gas company in a green, renewable energy world? AGYP is a unique small fossil-fuel company aiming to produce new energy on American soil. As it acquires drilling sites for little or no cash outlay to the landowners and now is reporting how its modern technologies are making abandoned or mature wells new again, the stock is marching past resistance points and shorts are covering their positions.
As AGYP is making more progress at its Green and Gilmer leases in Texas — see the Company’s tweets here — barrels of oil produced from these wells of proven assets could be a reality soon. Crude oil prices today are spiking at $75 a barrel (July 1, 2021) for the first time in three years, the Washington Post reported, ahead of the OPEC meeting. Could $100 a barrel be in crude oil’s future?
That would make AGYP’s progress on its well sites even more financially impactful.
Oil has posted five straight weekly gains, according to Bloomberg, as stockpiles shrink and the market tightens. As countries re-open post COVID-19, pressure on oil stocks is growing. According to AGYP’s most recent fiscal filing, Quarterly Report (March 31, 2021), unaudited figures show an accumulated deficit at AGYP was $4,153,688 at March 31, 2021. But more public or private offerings may float this company until operational revenues begin occurring because its liabilities exceed its assets. Meanwhile, investors shorting the stock have watched its price levels exceed resistance points and AGYP making progress on its well sites.
AGYP typically enters agreements for 100% working interest and 80% net revenue interest ownership stakes in wells with the leasehold owners. Corporate tweets (above) document its progress at the Gilmer and Green projects: abandoned/marginal wells located within Texas. At Gilmer, modern strategies, such as fracking, can make aged and abandoned wells new again. Two of the five wells on the lease are saltwater injection wells. In its lifetime, the lease has produced more than five hundred thousand barrels of high gravity oil and more than five hundred million cubic feet of natural gas.
The Green Lease project has world-class hydrocarbon sourcing from shale and reservoirs. New drilling techniques can make proven reserves pay again. AGYP has numerous other proven wells in Texas which can be re-worked. An expanded senior management team includes the veteran, newly hired Mark McBryde.