Allied Energy Corp.’s (OTCMKTS:AGYP) Future Is Driven By Soaring WTI And Brent Crude Oil Prices

Soaring WTI $73.51and Brent Crude $74.53 oil per barrel Tuesday night, according to Bloomberg, closed at historic highs — the keys to the future valuation of Allied Energy Corp. (OTCMKTS:AGYP). Being in the right place at the right time and facing what could be $100 barrel oil prices in the near future, this boutique oil and gas firm specializes in reworking and re-completing existing and abandoned oil and gas wells in Texas that have proven reserves.

AGYP is bringing reality home to shorts and could deliver great returns for long investors. AGYP closed Tuesday at $0.6205, up 1.97% — as it continues its running streak. Not only has it broken far beyond its $0.51 resistance point, it hit a high of .69 intra-day. Its volume continues to be high: 609,340 shares in Tuesday trading versus average volume of 440,519.  Shorts may have bet this was a typical fossil fuel oil and gas company, but AGYP is looking at assets of $100 barrel. This is especially true in light of the OPEC meeting failure and the OPEC and Saudi no-decision, stare-down.

Late last week, U.S. oil reached $75 a barrel for the first time since 2018. Because OPEC and Saudi Arabia cannot agree on new oil production levels, they are unable to produce enough product to meet ex-COVID emergent economies worldwide. The Saudi-Russia joint proposal called for a half a million barrel boost in production starting in August and then a gradual increase in OPEC total production by two million barrels daily through December. A decision, all said, would be postponed until late this week. Much of it depends on whether sanctions against Iran’s oil sales continues.

It is against this international political backdrop that tiny AGYP can slide between the larger players and market its own oil products at high per barrel prices in this volatile market. You would think that a fossil fuel oil and gas company would be shunned by the market today. The opposite is true: this is as green a renewable energy company as you can find. Its seasoned team identifies long-abandoned drilling wells and applies new technology to tap into proven reserves to make them new again. It negotiates drilling rights for little or nothing, its stock passes resistance points and now oil itself is headed for premium per barrel price territory. AGYP typically enters agreements for 100% working interest and 80% net revenue interest nership stakes in wells with the leasehold owners. High reward is negotiated for its risks for developing older wells.

As AGYP is making gains at developing its Green and Gilmer lease sites in Texas, barrels of oil produced from these wells of proven assets could be a reality soon. Spiking crude oil prices Monday night could make AGYP’s progress on its well sites even more financially impactful.

Oil has posted five straight weekly gains, according to Bloomberg, as stockpiles shrink and the market tightens. As countries re-open post COVID-19, pressure on oil stocks is growing. According to AGYP’s most recent fiscal filing, Quarterly Report (March 31, 2021), unaudited figures show an accumulated deficit at  AGYP was $4,153,688 at March 31, 2021. But public or private offerings are designed to float this company until operational revenues become reality.

Corporate tweets document its progress at the Gilmer and Green projects: abandoned/marginal wells located within Texas. At Gilmer, modern strategies, such as fracking, can make aged and abandoned wells new again. In its lifetime, the lease has produced more than five hundred thousand barrels of high gravity oil and more than five hundred million cubic feet of natural gas.

The Green Lease project has world class hydrocarbon sourcing from shale and reservoirs. New drilling techniques can make proven reserves pay again. AGYP has drilling rights to numerous other proven wells in Texas which can be re-worked, it says.