The case for Allied Energy Corp. (OTCMKTS: AGYP) is clear. This is an independent energy producer that has hit oil and gas at five wells on American soil. Now it is exploring for more at another promising well site.
AGYP uses the newest technology to make old or abandoned wells commercial and productive again. It has proved it with five American wells in Texas producing oil and gas. Next is its third recently-acquired site where yet another well promises to pump more.
Yesterday, President Biden made the case. He finally tapped the nation’s Strategic Petroleum Reserve (SPR) for 50 million gallons of oil. His goal is to reduce high prices at the gas pump. At best, the strategy is a band aid.
Any oil is precious today. The catalyst for AGYP is that it is a U.S. oil-producing Company. It makes old wells new and commercial again.
Experienced management is applying new technology to older, abandoned commercial wells. The result is that these wells are commercial once again. The AGYP strategy of pumping oil from proven wells works long term.
First, oil prices are spiraling higher globally:
- Yesterday, a tweet from Goldman documented Biden’s tapping of the SPR. “A Biden SPR release is now fully priced in and will send oil price even higher in 2022.” It adds: “If such a release is confirmed and manages to keep oil prices depressed in the context of low trading activity into year-end, it would create clear upside risks…”
- Last evening, oil prices remained high in mixed results. WTI Crude settled at $78.61 per barrel and Brent Crude closed at $82.27, according to oilprice.com. Is $120 per barrel coming soon?
- AGYP stock rose 1.33% last evening to $0.3040 in light volume of 135,747. It continues to rise as energy remains in short supply.
- Oil and gas prices globally are spiraling out of control. Bank of America predicts oil will hit $120 per barrel skyrocketing by next summer. Bloomberg quotes The Daily Mail reporting BOA’s Francisco Blanch, analyst, as predicting $120 barrel prices by summer 2022. It has already reached seven year highs.
Second, AGYP has proven itself knowledgeable and experienced enough to take leased site wells and make them commercial again with new technology:
• AGYP is an independent and eco-green. A fossil fuel company is green when it makes proven wells new producers. New 2021 techniques include horizontal ‘legs’, down hole drilling and fracking.
- The Company has already hit five wells on its leased Green site and Annie Gilmer site. Now it is focusing on finding even more oil at its acquired Prometheus site — all three are located in Texas. The 28 unit Well 1H at Prometheus is the newest and most promising additional well site.
- Earlier, it reported it hit oil on three of its wells on the Annie Gilmer site. It also hit oil at two more on its Green Lease site. And now it is exploring for more at its Prometheus site.
Third, it has many more oil wells yet to come. The AGYP catalyst is that it has many more well sites to explore. These include:
- Cameron #1 Deu Pree Field in Wood County was abandoned when the price of oil dropped to less than $10. It had already pumped 30,000 bbls.
- Continental State Bank #14, East Texas Field, Gregg County is also promising. This is a shut in well fully capable of commercial production. This well is located in an advantageous geologic position.
- Julia Finley Lease East Texas Field has eight shut in wells of which six are primed for production.
- Dora Hastings #1- R & #2 has two wells equipped for production.
- F. M. Ezzell #2, well is ready to be reworked for commercial production
Byers Heirs #2 Field in Wood County that in1997 produced 74 bbl. daily of heavy oil.
- At Byers #1 Deu Press Field in Wood County, this well has produced 120,000 barrels of oil. It was abandoned in 1997, but technology has improved since then.
Fourth, AGYP Reserves Are $32 Million
An oil engineer reported in OTC Filings on AGYP’s Proved, Possible and Probable reserves. For Green Lease Site he analyzed these reserves:
At the Annie Gilmer site, he reported:
This is $32 million combined in oil and gas reserves at early summer 2021 prices. Oil is significantly higher priced today. And the engineer never evaluated the reserves at the Prometheus site.
Fourth, AGYP stock is still inexpensive as it is in the early stages of finding new domestic energy. As global oil prices jump, the U.S. is short supplies.
AGYP is a promising stock and still priced low. But it is growing. Year-to-date it has jumped to $0.3040 from $0.0560. AGYP stock is cheap and growing quick with its energy future in front of it. That’s significant growth since January 2021.
Keep AGYP on your energy watch list as it is seen producing more oil & gas in the future.