Allied Energy Corporation (OTCMKTS:AGYP), has recently posted two very important filings related to two of their oil leases that may have eluded some investors. The two filings released July 22nd are part of a larger “Engineering and Economic” report that will be released soon according to the company.
You can find the filings here:
The disclosures detail each lease’s Proved, Probable, and Possible reserves.
If you are new to oil & gas investments, or are unsure what that means:
- Proven reserves sit at the top of the scale, at a 90-percent or above likelihood of commercial extraction.
- Probable reserves are those with the likelihood of recovery for between possible and proved reserves, or over 50-percent but under 90-percent
- Probable reserves are those with the likelihood of recovery for between possible and proved reserves, or over 50-percent but under 90-percent.
Now that you know what they mean let’s look at what AGYP has reported:
The Green Lease:
Proved: $2,026,500
Probable: $5,781,300
Possible: $12,755,300
TOTAL: $20,563,100
The Annie Gilmer Lease.
Proved: $6,704,900
Probable: $1,902,200
Possible: $3,587,700
TOTAL: $12,194,800
Let’s add these numbers up for some perspective on the total potential of these leases:
Total Proved: $8,731,400
Total Probable: $7,683,500
Total Possible: $16,343,000
GRAND TOTAL: $32,757,900
A very impressive number in its own right, however, it becomes more impressive when you consider these prices are at a conservative estimate of oil barrels priced at $46.26.
Oil is currently well over $70 per barrel, so considering the two leases’ potential at $70 per barrel the new grand total would be $49,568,804 that’s 51% higher than AGYP’s ultra-conservative estimate.
Oil prices look to be recovering, and AGYP is still well off its 1 year high of 83 cents. As new investors learn about these numbers the stock could reach higher. Make sure to do your research on Allied Energy Corporation (OTCMKTS:AGYP).
