Allied Energy Corp. (OTCMKTS:AGYP) may have once been considered a long shot value penny stock in a renewable energy world. Guess what: it is now a surer shot, the greenest of green energy companies, seeking to deliver U.S. oil from what have been plugged or abandoned Texas wells on American soil.
A boutique oil and gas company in an investing green environment cool to fossil fuels, AGYP’s team of oil experts lease proven oil wells — some haven’t been worked since the 1940’s — and apply new technologies, and generate barrels of oil for what turns out to be the greenest of companies. Recent tweets from AGYP say the Company is ready to pump oil from wells in Texas. The latest report by a senior petroleum engineer documents the number of barrels and valuations at these sites. New U.S. oil from commercial older wells is AGYP’s business model.
AGYP doesn’t have to explore to find oil, their experts know precisely where it is: proven, probable, and possible from commercial well sites. The team includes CEO George Monteith, who has 35 years of experience in the oil industry and worked on projects from North America, South America, and Asia. Gordon Johnson, COO, comes from a family of petroleum engineers and drilling contractors. It includes Mark McBryde, petroleum engineer, plus AGYP has field teams to drill the identified wells.
George Montieth, CEO of AGYP, said, “Mark is a respected oil man with a long history of success within the industry … and has worked for senior oil companies. The reserve report that Mark is preparing will provide the company with a financial valuation that can be used within the oil and gas industry.”
With this seasoned team, AGYP’s strategy is to apply the newest technologies to proven well sites on leased properties. Typically, AGYP negotiates for the lion’s share of newly pumped oil — some up to an 80% share — from older, non-working but commercially viable sites. These wells, all located in Texas, may have been abandoned or plugged while they were still commercially productive. So, AGYP acquires these established sites for little or no cash outlay to the landowners. What could be greener than that? For pink-sheet listed AGYP, it prepares to provide American oil from U.S. soil. As a boutique oil and gas company, it can offer barrels of oil in the future which are available for quick sales delivery and valuable in a world of global politics. And it’s close geographically.
In a non-independent energy America now, AGYP might be a low-cost investment that rewards loyal investors. It typically enters agreements for 100% working interest and 80% net revenue interest ownership stakes in wells with the leasehold owners.
The stars may be aligning for this company. AGYP’s value is also seen in assets-under-management (AUM), the oil reserves at its oil wells. Prices of WTI and Brent Crude oil are vital — as these oil prices per barrel remain high, AGYP stock is more valuable. Every barrel of oil AGYP pumps from its wells can be sold at a competitive price to industry-competitive numbers. On Friday, WTI crude settled at $73.95 and Brent Crude closed at $75.41 — both were in the green.
The most promising wells for AGYP are on the Green Lease And Annie Gilmer lease sites in Texas. Reports on both of them from records attest to their commercial performance. Review them on Green Lease and Annie Gilmer.
- Green Lease Project: Has world class hydrocarbon sourcing from shale and reservoirs, which can be accessed via vertical and horizontal drilling and modern completion techniques.
- Annie Gilmer Project: AGYP is using new technologies to make mature wells new again. Fracking, cased hole electric logging and other strategies are being employed in aged or abandoned proven sites. Of the five wells on the lease, two are saltwater injection wells. AGYP plans to re-convert one of the wells into an active oil and gas producer. 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 newest study of the potential of the Green Lease site by McBryde was submitted to the company and to the OTC on July 16, 2021, as a supplemental disclose report. Here it is. Future reports from the petroleum engineer on the Annie Gilmer wells and other locations will be similarly filed with the OTC, for full investment community transparency. The first report alone shows its Green Lease site has 229,400 “probable” barrels of oil with pre-tax future net revenues of $5,781,300 at an extremely low $46.26 price point — the customary twelve months trailing average plus costs of extraction. AGYP is documenting its oil valuation — assets under management (AUM) for itself and its shareholders/investment community. “Possible” oil at the leased site was reported at 448,000 barrels — worth $12,755,300 at present value. Costs of extraction have already been factored in with the valuation prices.
McBryde wrote: “Proved oil and gas reserves are those quantities of oil and gas which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible from a given date forward. The proved results were estimated using deterministic methods.”
A PDF presentation prepared for AGYP by an oil & gas consulting firm showed the Green Lease site had originally been drilled back in the 1940s, but it has changed hands numerous times since and been under-utilized. AGYP’s newest effort “will be the first to apply the most current drilling and production practices to the lease in 50 years.”
Here’s why AGYP may be getting close to pumping some sweet Texas Tea. In a corporate tweet it detailed its ongoing operations from vendor Tri-County Electric that is electrifying the Green Lease Site, replacing downed poles. It needs electrification to operate its well there and begin pumping. Allied Energy Corp. (OTC PINK: AGYP) tweeted on July 14, 2021 that its Well M1 at its Green Lease site is pumping oil: “M-1 Well Pumping. The pump corrected itself and it is now running fine.”
Technical stock indications are also showing an overbought stock and a ‘buy’ recommendation. Allied Energy Corp. (OTC PINK: AGYP) is rated a 56% ‘buy’ in an analysis from site Barchart as long investors await more volume to support AGYP’s stronger support levels. Barchart analysis showed a 56% ‘buy’ level based on calculations from 13 indicators combining to compose ‘Signal Strength.’ To investors long AGYP, price dips represent opportunities because they are waiting for oil well production to begin at the company’s leases in Texas. Long-term investors of AGYP say they see price dips as lower-cost loading zone opportunities.
All of AGYP’s oil exploration on American soil is offering highly documented confirmations of reserves. In the volatile global economy, oil shipping to the U.S. from the Middle East and other locations is uncertain. Oil traders quoted on Q3 and Q4 prices of oil expect “wild gyrations” ahead as the market demand endures rapid changes — due to COVID-19 and the Delta Variant. Should consumers mask or not, and even some 25% of medical workers remain un-vaccinated. In this changing economy, AGYP America-sourced oil may flourish.
According to its most recent fiscal filing, Quarterly Report (March 31, 2021) unaudited figures show liabilities of $2,691,647 and an operating and net loss of ($306,548). The accumulated deficit was $4,153,688 on March 31, 2021. More public or private offerings may be coming in the future because its liabilities exceed its assets.
Here are AGYP’s most recent assets of abandoned/marginal wells. All are located within Texas:
- The Byers Heirs #2 Deu Press Field abandoned in 1977. It is a proven reserve of ‘heavy’ crude oil. AGYP plans to “blend” this type of oil with condensate to raise the gravity of the oil. To reach that goal, AGYP says it will need to drill four or five short lateral legs (horizontal) to increase production of non-discounted oil.
- Byers #1 and Cameron #1 Deu Pree Field in Wood County: these are additional abandoned wells. One was shut when older technology could not repair a leak, the other was abandoned when oil fell below $10 a barrel.
- AGYP also has numerous leases and identified other potential and abandoned wells within Texas which perhaps can also be re-worked.