Allied Energy Corp. (OTCMKTS: AGYP) filed its new Annie Gilmer site supplemental disclosure with the OTC specifying 190,500 barrels of oil proved and 80,400 probable and 135,500 possible. Value of the oil and gas findings are: $6,704,900 proven at present worth and $1,902,200 probable and $3,587,700 possible. Computations are at $46.26 per barrel of oil, well below current oil pricing in the $70’s. Extraction costs are also already computed into the report. At current market rates, the price of this oil was valued Monday at WTI crude $71.26 per barrel and Brent Crude $73.23 — or about 56+% higher than the stated values in the report.
In gas, hydrocarbon reserves totaled proved 563.3 MMCF, probable 192.2 MMCF and possible 224.1 MMCF.
The report findings were complete as of July 1, 2021.
All things are going in the right direction. AGYP closed Monday up 13.13% to $0.4695 trading 699,016 shares while WTI and Brent Crude oil prices held above $70 per barrel. In 60% higher trading than the daily average of 437,053, AGYP earned a 72% ‘buy’ rating from site Barchart based on 13 technical indicators.
AGYP drew market interest when it filed its initial July 22, 2021 ‘Reserve Report’ which details proven, probable and possible oil reserves on all of its current leases, starting with an engineering report on its Green Lease site. Prepared by Mark McBryde, petroleum engineer, the Green Lease site report has already been filed with the OTC as a supplemental disclosure. Now the Annie Gilmer lease site report has also been filed and made available to the OTC markets via supplemental disclosure.
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 one-month 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.
Barrel prices of WTI and Brent Crude are significantly higher than the $46.26 used in the McBryde computations — making the AGYP oil even more valuable.
A key to this stock is its assets-under-management (AUM), oil beneath the wells it has leased in Texas. A secondary is the worldwide price of crude oil — which makes its AUM even more valuable. Not only is AGYP’s oil in the U.S. and does not have to be shipped from the Middle East — it is even closer than the oil in Canada which now has to be trucked or railed to America, due to Biden’s cancellation of the Keystone Pipeline — it is holding at high market prices. On Monday WTI crude settled at $71.26 per barrel and Brent Crude closed at $73.23.
As all pricing elements move in the right direction, investors long AGYP are betting that the Company will begin pumping oil at this right time from its numerous well leases from provable, probable, and possible oil reserves. In a sign that pumping is imminent, AGYP sent out a tweet on July 28, 2021, saying: “Tri-County electric is currently replacing the down poles on the Green Lease. Regaining electrical power is essential to achieving full production on our Wells.”
Long shareholders in AGYP are betting not only on oil pumping from the Green Lease site, but also the promise of the Annie Gilmer site and other AGYP well locations in Texas. The stock rose today — at times reaching more than 20% higher than close — as AGYP’s profile is rising and technical indicators reflect a strong buy rating. Investors are also seeing global and local oil prices hold over $70 per barrel, well after the Saudi Arabia-UAE-OPEC oil issues were resolved. In other words, global experts who predicted oil prices would then drop were wrong — they remain strong in the $70+ per barrel range.