As another trading week begins it is time for investors to perhaps consider taking a look at certain stocks which may have performed strongly last week and one of the stocks which could well be worth tracking this morning is that of Allied Energy Group (OTCMKTS:AGYP).
The Allied Energy Group stock was in sharp focus among investors last week and had ended up with gains of as much as 9% as a consequence. Before looking into the specific developments which led to the rally, it may actually be a better move for investors to get a better idea about the company and the sort of business that it is involved in.
Trading Data
On Friday, AGYP stock fell 0.68% to $0.1391 with more than 371K shares traded, compared to a volume of 208K shares. The stock moved within a range of $0.1350 – 0.1400 after opening trading at $0.14.
About Allied Energy Group
The company is involved in the energy development and production space. It is focused on the acquisition of oil and gas properties that are situated in some of the more prolific hydrocarbon zones in the United States.
The primary work that Allied Energy Group is involved in is related to the re-completing and reworking of already existing oil and gas wells in the prolific gas-producing regions in the United States. The expertise, knowledge, and technology that the company possesses help it in bringing about a higher volume of production and longer well life.
The company is committed to further increasing its footprint by taking control of oil and gas properties in diverse regions. It believes that such a strategy is going to help it in bringing about rapid growth and eventually unlocking more value for the shareholders. As it happens, the company made a major announced on Saturday that may bring it into sharp focus this morning among investors.
Allied Energy Expands Its Natural Gas Holdings by Acquiring the Thiel Lease
Allied Energy Group announced yesterday that it had managed to expand its holdings of natural gas by way of acquiring the Thiel Lease and Well. The Thiel Well is situated in Brenham in Texas and had first been drilled in 1996 by Union Pacific Resources.
After the well had actually been completed, it had recorded an absolute open flow rate to the tune of as much as 44,000,000 cubic feet of natural gas on a daily basis. Over the course of the first three years of production, the well had managed to produce as much as 3,000,000,000 cubic feet of natural gas.
From the year 2009 up until 2021, the Thiel Well had actually been under the control of Jenex Petroleum Corporation and at the time it had managed to produce as much as 8,080,000 cubic feet of natural gas on a daily basis.
At this point in time, the well has been shut owing to a flowline leak and the previous operator decided not to repair it. It was also announced yesterday that Allied Energy Group had conducted the necessary due diligence and noted that the repairs that are going to be needed would add considerable value in the long run. In light of the acquisition of a potentially prolific natural gas will, it is possible for the Allied Energy stock to get back in focus.
Key Quote
Allied CEO George Montieth commented on the acquisition: “One of the natural resources that we haven’t spoken much about, thus far, is our natural gas holdings. Based on current trends and the preponderance of news, we here at Allied believe that natural gas, along with crude oil, has an incredibly bright future and we want to inform our investing public that we intend to maximize this resource alongside our crude oil production. Allied is seeking additional capital to add more leases like the Thiel.”
Technical Data
AGYP stock is trading below the 20-Day and 50-Day Moving averages of $0.1427 and $0.1723 respectively. Moreover, the stock is trading below the 200-Day moving average of $0.2585. The company has a total market capitalization of $371,591. The stock is down 49% over the past 6 months.
