Allied Energy Corp. (OTCMKTS:AGYP) Stock Hits $0.82 Intraday, Closes At $0.69, Up 12.80%
Allied Energy Corp. (OTCMKTS:AGYP) stock jumped to $0.82 in intraday trading Wednesday and closed at $0.69, rising 12.80% and soaring past its $0.66 resistance level. More good news: AGYP said its Well M1 at its Green Lease location in Texas is ready “to start production” and the Company will begin projecting barrel flow rate later this month. For details, see AGYP’s company tweets. In addition, WTI and Brent Crude barrel prices are holding at WTI $72.22 and Brent Crude $73.42 oil per barrel Wednesday night after close, according to Bloomberg. Skyrocketing stock, Well M1 ready to produce and global oil stock prices combined make for a very positive day for AGYP.
Volume at AGYP stock doubled its everyday average. Wednesday volume reached 850,883 shares — compared to its 447,357 average volume. The volatility in trading AGYP stock reflects the confidence of long investors and concern by short investors covering their positions.
As AGYP continues to make progress on its wells within Texas, global oil pricing — and short availability — means the stars are aligning for this Company. As the Well M1 site approaches production, the Company’s team is moving work over operations over to Green Lease Well K-3. At M1, a pump-jack will be installed this week after the crew on site noticed a good oil cut on the final run. Meanwhile work continues on AGYP’s other major lease site: Gilmer Lease.
George Montieth, CEO of AGYP, said today (Wednesday, July 7, 2021), “The entire crew is well aware of surging oil prices and all of us are incentivized to bring wells online and producing this month.”
AGYP is a prime example of being in the right place at the right time and being driven positively by oil prices approaching the $100 level as global politics between OPEC, Saudi Arabia, the United Arab Emirates and the Soviet Union could mean a global economy about 200 million barrels a day short in the near future. As large countries and oil producers squabble, AGYP progresses as a boutique oil and gas firm specializes in reworking and re-completing existing and abandoned oil and gas wells in Texas that have proven reserves. It could deliver American-sourced oil produced on American soil from leases that are efficient and inexpensive. The global timing couldn’t be more right.
AGYP has broken through its $0.66 resistance level. Its volume continues to be high and AGYP could be looking at assets closing in at $100 a barrel. Global products may drive oil prices that high. The global oil market is already almost three-fourths the way there already. The OPEC meeting failure and the OPEC/Saudi/UAE/Russia no-decision, stare-down continues. The U.S. hopes for higher production levels, but its Keystone Pipeline shutdown decision earlier this year, means that any additional oil — especially American oil from American soil — is dear. AGYP is on the cusp of making its impact felt.
Late last week, U.S. oil reached $75 a barrel for the first time since 2018. The Saudi-Russia joint proposal calls 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 and depends on whether sanctions against Iran’s oil sales continue.
AGYP’s 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 pricing territory. AGYP typically enters agreements for 100% working interest and 80% net revenue interest stakes in wells with the leasehold owners.
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 Wednesday night could make AGYP’s progress on its well sites even more financially important.
Corporate tweets document AGYP’s progress at the Gilmer and Green projects: abandoned/marginal wells located within Texas. At Gilmer’s 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.
