Allied Energy Corp. (OTCMKTS: AGYP) may be soon forcing a short ‘squeeze’ as its stock jumped again Tuesday (August 3, 2021) to $0.5010 or +6.71%. in near average volume of 425,374. On Monday, AGYP rose by 13.13% in heavy volume as shorts dominated volume (463,698 out of total 699,016 or 66.3%) according to the Financial Industry Regulatory Authority (FINRA).
News was that 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 (12 month trailing pricing) well below current oil pricing in the $70’s. Extraction costs are also already computed into the report. The report findings were complete as of July 1, 2021.
At current market rates, the price of 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 total proved 563.3 MMCF, probable 192.2 MMCF and possible 224.1 MMCF.
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.
A reason why this stock is defying the shorts is that WTI and Brent Crude oil prices are holding in the $70’s per barrel range. On Tuesday, oil settled at WTI $70.35 and Brent Crude at $72.41. The assets-under-management (AUM) valuation of AGYP continues high — some +56% higher than the supplemental disclosure reports indicate, with extraction costs already computed into the final totals.
If AGYP online site is followed, this is an oil and gas company managed by energy seasoned veterans drilling leased old well sites with new technologies — making older commercial wells new again — with proven, probable and possible energy reserves. Another reason why this is valuable U.S. energy from American soil is that oil tankers in the Middle East face a precarious journey in hostile waters before making the trip to the U.S. Look at news at the drone attack on the MV Mercer Street oil tanker off the coast of Oman. AGYP’s American-sourced oil and gas is valuable and local. In terms of promising wells, the Green Lease and Annie Gilmer sites have now received petroleum engineering reports on their oil and gas reserves.
All of this adds up to short investors thinking AGYP was a long shot at first, and dominating trading daily, into perhaps now reconsidering that thinking. Long investors in AGYP are betting that the Company will begin pumping oil at high competitive prices from wells that are proven commercial performers.
AGYP last night on August 3, 2021, remains a 72% buy, according to analyst site Barchart, which summarizes the strength ad direction of stock ‘buys’ from 13 different indicators — such as moving averages, support and resistance points.
The first engineering report and filed as an OTC Supplemental Disclosure shows AGYP’s 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