Allied Energy Corp. (OTCMKTS:AGYP) stock could gain this week as oil prices hold at near-$70 barrel as politics again intensify in the Middle East. The fall of Afghanistan to the Taliban last night and the controversy over Iran’s alleged drone attack weeks ago on the Israeli-managed tanker Mercer Street makes for an even more unstable region. The result is that oil prices remain high: WTI Crude is at $67.58 and Brent Crude is at $69.72.
AGYP in a series of Tweets last week updated its shareholders and investor community last week on its progress striking oil at its Texas-based wells. Offering American oil from U.S. soil is becoming an even bigger advantage as the Middle East becomes more unstable. AGYP’s oil is in the U.S. — free from uncertain deliveries and politics abroad.
In addition to its location, Allied Energy Corp. (OTC PINK: AGYP) has filed its Q2 quarterly report for the three months ended June 30, 2021 and there’s a lot of good news. First, it cut its operational and net losses for the quarter — principally by reducing expenses and reinvesting all money from saved expenses back into its well development program.
Operating losses off the three months ended June 30, 2021 dropped to $85,913 from $113,368 the comparable period the prior year — a 24.2% decline. For the six months ended June 30, 2021. It cut operating expenses in Q2 2021 to $175,461 from $231,286 — again, by 24.1%. All created similar drops in net loss for both periods.
This was principally achieved by cutting salaries/wages. In the Q2 period in 2021 they were $45,000 vs. $81,000 vs. the same period the prior year. In the six months period in 2021, the salaries/wages number dropped to $90,000 from $162,000 the year prior.
AGYP closed Friday at $0.3990 in light trading of 176,957.
It’s important that AGYP management in Q2 moved all of its free cash flow for investing activities — or $224,563 — back into re-investment into its oil and gas properties. This is a management team that believes in its future performance.
George Monteith, CEO, and Gordon Johnson, COO, now routinely convert their accrued salaries into AGYP notes. The notes are unsecured, bear no interest and are convertible into common or preferred shares at market rates. This reflects management’s commitment to the the company’s business model of using new technologies to make old or abandoned wells in Texas new again — producing American oil from U.S. soil.
Engineering reports on the company’s leased wells filed with the SEC as Executive Summaries by a petroleum engineer document the reserves and their value in these OTC-filed supplemental filings.
At the Green Lease Site, Mark McBryde, Petroleum Engineer, found $2,944,900 of proved oil and $18,536,600 worth of probable and possible oil. At the Annie Gilmer Site. he found proved oil and gas reserves of $6,704,900 and probable and possible reserves of $5,489,900, all computed at a market price of $46.26. This is far below today’s market prices — see above. The report findings were complete as of July 1, 2021.
AGYP’s online site describes in detail that 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.
AGYP has kept shareholders and the investor community informed about its progress in making its abandoned and once-commercially viable wells produce again. Some have not been worked since the 1940’s. Now they’re being worked with the latest technologies.
The impact of the two supplemental filings with the OTC is making itself felt in steadily rising prices for the stock — as oil and gas reserves at the well sites have been documented.Links to more news are at https://alliedengycorp.com/ and https://twitter.com/AlliedEnergyCo1