Allied Energy Corp. (OTCMKTS: AGYP) closed green last night at $0.2950 — up +1.65% — as other oil sector stocks such as Trophy Resources, Inc. (OTC: TRSI), PHX Minerals (NYSE: PHX), PDC Energy, Inc. (NASDAQ: PDCE) Contango Oil & Gas Company (NYSE: MCF), Kosmos Energy Ltd. (NYSE: KOS) and Amplify Energy Corp. (NYSE: AMPY), closed down among the oil stocks closing red yesterday. The oil industry reacted to hurricane Ida and the resulting impact on the oil industry. Ida shut down some 96% of the Gulf Coasts’ oil production. Meanwhile, both major oil indexed held high again last night: WTI Crude settled at $68.37 and Brent Crude settled at $72.59.
As Afghanistan and its ripple impact pressures many energy stocks, every indication shows that oil and energy will rebound as a sector. Short term, global oil remains under intense pressure — but, thus far, prices are holding. As the crisis settles, watch AGYP and the rally in oil prices for an indication on which way this market will move.
Oil settles closer to $70 per barrel and higher In the face of worldwide uncertainty and volatility. The rally in oil prices — despite the New Orleans hurricane Ida here at home — is a tailwind for AGYP. AGYP value is strong and its assets-under-management (AUM), notably its oil and gas reserves, are critical factors in its favor.
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 with new technology to make these wells new again: that’s the AGYP business model.
In an oversold general market, AGYP long holders should sit tight and wait for the bounce. Kerala, quotes J. P. Morgan predicting that oil, with all this Mideast turmoil, could reach $80 barrel. Oil is on the precipice of remaining in the $70’s — AGYP benefits.
Barchart has now set the first resistance point for AGYP at $0.3167. This price point is achievable. Watch as the price of oil and AGYP’s drilling progress on its leased wells in Texas.
AGYP’s sweet spot is increasing As its stock performance runs against the grain — it is closing green as other oil stocks settle red — it has recently shown the strength to bounce almost 10% from market declines. One day last week, its stock jumped 9.76%, even in a volatile market. Federal agencies are free to begin leasing for energy companies on federal land in the aftermath of a failed Biden administration could bid to stop these leases last January. While the appeal drags on in the courts, federal agencies move forward. This is a positive trend for domestic oil and gas — early on, cancelled by the Biden administration.
AGYP continues to string together green closing days as the oil and gas energy sector remains volatile. Reaffirming this, its Q2 2021 financial report reflect AGYP’s discipline in cutting operational and net losses and management’s focus on producing oil and gas product.
AGYP filed two supplemental 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’s significantly higher settlement prices, reflecting the real price of its AUM value.
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