Allied Energy Corp. (OTCMKTS:AGYP) closed Tuesday at $0.2825, off 19.70%, but the move yesterday was more about global volatility impacting oil than about the performance of AGYP itself. Meanwhile both oil indices were green again — WTI Crude closed up last night 0.39% at $62.38 and Brent Crude settled at $65.51, +0.51% higher.
The good news is that oil settled higher last night — remaining at or above the $62 per barrel of higher prices. In the face of worldwide uncertainty and volatility, both oil measurements remained high. The telling issue is that Brent Crude remained ever higher and showed more green support. Oil prices holding high are tailwinds for AGYP, even in this uncertainty. AGYP value is strong and its assets-under-management (AUM) is a critical factor in its favor.
Afghanistan, indeed the whole Middle East situation, weighs heavy on energy stocks. But as media coverage settles, every indication shows that oil and energy will rebound as a sector. Short term, global oil may be under intense pressure — but, thus far, prices are holding. As the crisis settles, watch AGYP and other oil stocks — such as U.S. Energy Corp. (NASDAQ: USEG), PrimeEnergy Corporation (NASDAQ: PRNG) Southwestern Energy (NASDAQ: SWN) and PDC Energy, Inc. (NASDAQ: PDCE), to regain footing and grow.
Energy sector stocks were mixed yesterday, with stocks on the NYSE closing higher than other exchanges. In after-hours trading last night, (NASDAQ: USEG) closed at $3.8300, off 0.78%. (NASDAQ: PRNG) was unchanged at $50; (NASDAQ: SWN) closed at $4.12, up 1.48%; Tetra Technologies, Inc. (NYSE: TTI) closed at $2.97, up 1.37%; PDC Energy, Inc. (NASDAQ: PDCE) closed at $39.52, up 2.09%.; Contango Oil & Gas Company (NYSE: MCF) closed at $3.4900, up 3.87%; and Kosmos Energy Ltd. (NYSE: KOS) closed at 2.2400, up 1.82%.
Allied Energy Corp. (OTCMKTS PINK: AGYP) is a Texas-based independent with a business model which calls for drilling for oil and gas in Texas, on American soil, to produce U.S. energy on domestic soil from long abandoned but once commercially viable wells. Its management team is senior and working once-commercial and viable wells, now abandoned. New technology can make these wells new again: that’s the AGYP business model.
Long term holders of AGYP should sit tight and wait for the bounce. Short sellers may have had a great day yesterday, but global volatility is not in their long play favor. Play the long term on AGYP and win. After all, site Kerala, quotes J. P. Morgan predicting that oil, with all the Mideast turmoil, could reach $80 barrel. Even if oil reaches into the $70’s and stays there, AGYP benefits.
Barchart has now set the first resistance point for AGYP at $0.3343. With more volatility ahead, for the short term, this price is achievable. The key to watch is the price of oil and AGYP progress on its leased wells in Texas.
Now that the Biden’s administration’s early lockdown this year of oil and gas leasing on federal lands has been loosened by a court ruling against this policy, the value of domestic and oil and gas — right in AGYP’s sweet spot — increases. That makes the AUM measurement for AGYP more valuable. Until the Biden court appeal is resolved, federal agencies are free — even obligated — to begin leasing for energy companies on federal land.
AGYP filed two supplement engineering reports with the OTC on its leased wells in Texas. 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 for last night settlement prices.
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 — especially as Afghanistan sizzles.
The impact of AGYP’s 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