Alpha Energy Inc (OTCMKTS:APHE) Stock Surges 32% In a Week: Here is Why

The energy sector has been in considerable focus among most investors ever since the global oil crunch hit earlier this year due to the Ukraine conflict. There are a vast number of companies to look into if you are currently looking into such stocks and this morning, it may be a good idea to consider taking a look into Alpha Energy Inc (OTCMKTS:APHE). The company’s stock was in considerable focus over the past week and managed to emerge as one of the major oil and gas sector gainers as it ended notched up gains of as much as 32% during the period.

Trading Data

On Monday, APHE stock ended flat at $4.95 with more than 200 shares, compared to a volume of 1.4K shares. The stock moved within a range of $4.9500 – 4.9500 after opening trade at $4.95.

About The Company

Alpha Energy Inc is involved in the acquisition, development, production, and eventual sale of crude oil and natural gas in the United States. At this point, it has an interest in the Coral Project, which encompasses an area of as much as 1100 acres.

Alpha energy, inc. Enters into definitive agreement to acquire 7 producing and 21 additional oil and gas well bores in seminole county, Oklahoma

While there has been no news about Alpha Energy in the past week, it may be a good time for investors to consider taking a closer look at a key development from back on May 31. At the time the company announced that it had a definitive agreement in place, by way of which it was going to acquire as many as 28 oil and gas wells as well as other assets at the Mercury Project.

The project in question is located in Seminole County in Oklahoma. As per the provisions of the agreement that the company reached, it would have a 75% interest in the project and would be the main operator. The rest of the 25% stake is going to be held by a private entity.

In order to complete the acquisition, Alpha Energy is going to make a cash payment to the tune of $562,500 out of the total worth of the deal which stands at $750,000. It should also be noted that the sellers are also going to get an overriding royalty interest of 2% in the deal. The deal is expected to be closed no later than August 1, 2022. It remains to be seen if the stock continues to add to its gains today.

Key Quote

Jay Leaver, President, said, “Similar to the Coral Project (see press release March 15, 2022) the Mercury Project is an acquisition featuring multiple shallow target zones with good infrastructure and existing production to be acquired at a competitive price. Additionally, the 80 acres of surface land will allow Alpha to establish a yard for its operations in Oklahoma. Together the Coral and Mercury Projects, both of which have existing production and multiple well bores suitable for restarts and re-works, will allow Alpha to cover both overhead and financing costs as it moves toward an uplisting onto a major stock exchange this year. Alpha is fulfilling its promise to its shareholders to establish a substantial and dynamic oil and gas company with deep expertise in development operations, exploration, and finance.”

Technical Data

APHE stock is trading above the 20-Day and 50-Day Moving averages of $4.22 and $4.10 respectively. Moreover, the stock is trading above the 200-Day moving average of $4.01.