Allied Energy Corp.’s (OTCMKTS: AGYP) long investors are buying the dip as the stock closed yesterday at $0.3710 in light volume of 127,244. Shares on Monday were 8.14% green to reach $0.4000 in heavy trading volume. AGYP reported a positive Q2 financial report which showed a strategy of large cuts in operational and net losses through dramatically cut expenses. Free cash flow created was then reinvested back into the Company’s primary activity: leasing oil wells and applying new technology to make them commercially new again. AGYP’s management team and long term investors see a bright future.
Oil prices have a direct impact on AGYPs stock value as the link between its oil reserve at leased well sites and its assets under management (AUM) is vital. Both WTI crude — settling last night at 66.58, off 0.03% — and Brent Crude — closing at $69.02, off 0.01% — remain near $70 barrel pricing. Analysts projected prices would drop quickly after the OPEC-Saudi Arabia-UAE oil production issue was settled, but that is far from happening.
Analyst predictions that AGYP was among oil and gas stocks to watch in August have borne truth. Media reports of the importance of domestic oil and gas was underscored by the scenes in Afghanistan the past few days.
The Biden administration is now asking global oil producers in the Middle East to raise daily production levels as the U.S. slashes its oil/gas output. The result is that oil prices remain high globally and at home and continuing unrest in the Middle East makes pricing and supply volatile.
All those moves spell higher prices in the future for AGYP stock. It is domestic (in Texas), low cost to move and free of the geo-politics in the Middle East region. Short investors may hope for lower stock prices at AGYP, but long term shareholders see a different outcome as AGYP’s energy resources became more important in an uncertain environment.
All this is moving in the right direction for AGYP. In a series of Tweets, AGYP is making its performance on its leased Texas wells transparent, to its shareholders and the investment community. Tweet photos of progress at its wells plus technical advances gains confidence in a business model that works. American oil from U.S. soil is an advantage that works now more than ever.
In its Q2 OTC filing, AGYP documented that its operating loss during 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.
It also showed that AGYP 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.
AGYP’s Green Lease Site and Annie Gilmer site documents that its Texas-based wells are commercially viable. 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 near $70 barrel — 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.
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