In recent months, the energy sector has been in major focus among investors and it is expected to continue if the sector remains volatile owing to the Ukraine-Russia war. One of the companies from the energy sector that may well be worth tracking this morning is Allied Energy Corp (OTCMKTS:AGYP), an oil and gas producer which is involved in leasing and then reworking oil and gas reserves in some of the more prolific regions of the United States.
On Thursday, AGYP stock slumped 0.84% to $0.1180 with more than 382.34K shares, compared to volume of 96.05K shares. The stock moved within a range of $0.1115 – 0.1185 after opening trade at $0.1185.
Allied Energy Enters Into Joint Venture Agreement With River Energy Group
The company came into focus yesterday after it announced that it had gone into a strategic joint venture with the company River Energy Group LLC. River Energy is a private entity and is involved in investing as well as trading in the oil and gas sectors.
As per the provisions of the joint venture agreement, the two companies are going to work on the locating, allocating and securing stranded flared natural gas and natural gas resources. The joint venture is then going to work on developing those resources into dependable and resilient individual micro grids. It was a major new announcement from Allied Energy and one which could eventually unlock considerable value for the company in the long run.
River Energy Group Director Carl J. Boraiko explained: “With the provision of efficient, low-cost and clean energy, we will help reduce grid “congestion” and peak loads while reducing fuel use, line losses and carbon footprints within the industry. We look forward to working together to bring low-cost electricity to those industries not supported by their local power grid.”
AGYP stock is trading above the 20-Day and 50-Day Moving averages of $0.12 and $0.13 respectively. Moreover, the stock is trading above the 200-Day moving average of $0.21.