Allied Energy Corporation (OTC:AGYP) Stock Surges After Partnership Agreement on Green Lease Project

As another trading week begins, most investors are going to be on the lookout for those companies that may have been in focus last week. One of the companies that could be worth looking into this morning is Allied Energy Corporation (OTC:AGYP). On March 7, the company announced that it was excited to have formalized its partnership agreement with ORO Energy LLC and Petroloro LLC, jointly known as P&O Energy.

Owing to the partnership, the entities would work on the advancement of the Green Lease project. As per the provisions of the partnership agreement, P&O Energy would be responsible for overseeing the operations of the project. It would start off with the commencement of a thorough workover program on the X3 and M1 wells. The aim of the workover would be to maximize the production from the two wells and hit full potential. P&O Energy would also take full responsibility for the expenses related to the workover. The revenues generated from the same would be split in half between Allied Energy and P&O Energy.

However, that was not all. In the news release, it was also noted that the partnership agreement also had provisions for the development of more wells in the project area. P&O Energy also made a commitment to more wells in 2024. It was noted that the drilling locations had also been identified, and once the necessary permits were granted, the project land would be transferred to P&O Energy by Allied Energy.

In this context, it is important to point out that Allied Energy held a 5% overriding loyalty interest in the project lands as well as producing and newly drilled wells. The long-term vision of the collaboration would involve the drilling of a maximum of as many as eight wells in the coming years.