Allied Energy Corp. (OTCMKTS:AGYP), an independent oil driller, sees its valuation swinging wildly as global oil pricing shifts daily. The U.S. remains energy-short and OPEC nations are standing firm on production.
AGYP stock remained flat last evening, closing at $0.3060, off 3.55% in extremely light trading of 92,329. That’s only 24% of its daily average. The markets see a very volatile global oil market and remains quiet.
Oil pricing directly impacts the assets-under-management valuation of AGYP. After weeks of red-hot rising price increases, the major oil indices closed lower again.
Despite these downward moves in oil, predictions by institutions like Bank of America see oil skyrocketing. The Daily Mail quotes BOA’s projections that global oil will hit $120 per barrel by next summer. BOA is projecting a 43% jump in oil prices when it already stands at seven year highs.
Francisco Blanch, head of global commodities at BOA, sounded the alarm when he predicted the Brent crude benchmark will reach $120 per barrel by July 2022. This is from an initial report by Bloomberg.
OPEC staunchly remains with its staid production plan in place. It takes oil production levels up slightly, but only in steps towards the end of this year. It has approached 10 million barrels of oil daily for the first time since the CVID-19 pandemic began, Reuters reports.
Iran may be a backdoor solution to the crisis. Global talks are set to resume November 29. They are ostensibly about nuclear power, but oil may be in play. If U.S. sanctions are removed, Iran’s oil may be plentiful again.
AGYP is a small independent, but it plays an important role. It has already hit five oil and gas wells combined on the Texas Green Lease Sites and Annie Gilmer Sites. Ahead is the Company’s exploration of the promising Prometheus site. AGYP is focusing on the 28 Unit Well 1-H at the Prometheus well site.
Documentation of AGYP’s findings were reported to the Texas RR Commission. It is a producing domestic oil and gas independent. AGYP’s catalyst is that it is pumping oil within the U.S.
The Biden Administration is looking at all options. They include tapping the U.S. strategic oil reserves. This may be a last resort, but the government is short oil and gas.
Oil market prices remain high and shortages persist. AGYP Tweets on its progress at Prometheus as global prices swing wildly. Prices remain high, but volatile. As late as 2016, this Prometheus well produced 200 barrels of oil daily. It also generated 300,000 cubic feet of natural gas.
AGYP is making older or abandoned commercial wells new again. It uses 2021 technology to revive these wells. The newest techniques include fracking, down hole drilling and horizontal ‘legs’.
An oil and gas engineer early last summer determined that AGYP had some $32 million in oil and gas reserves at current prices. He used now out-dated $46 per barrel market pricing at the time. He also had not analyzed potential oil and gas reserves at Prometheus. It was not yet acquired by AGYP.
Keep AGYP on your Watch List as energy stocks are increasing in value in this volatile global environment.
Link to more news are at https://alliedengycorp.com/ and https://twitter.com/AlliedEnergyCo1
