Allied Energy Corp. (OTCMKTS:AGYP) closed at $0.3990, down $0.0217 or 5.15%. Investors long this stock are seeking more volume and prices higher than support levels to meet new resistance points. Volume yesterday was 369,322 — short of the daily average of 441,437. Barchart analysis showed a 56% ‘buy’ level based on calculations from 13 indicators combining to compose ‘Signal Strength.’
Investors are looking for increased volume to reach a first resistance point of $0.4998 and remain above the support level of $0.3715. In its tweet two days ago, AGYP addressed the issue of readying its Green Lease well site for production, saying: “Tri-County electric is currently replacing the down poles on the Green Lease. Regaining electrical power is essential to achieving full production on our Wells.” AGYP gave every indication it was preparing to pump and sell oil from the Green Lease location. It just needs the infrastructure, such as electrification, to operate the promising Well and, later, sell its oil assets for revenue.
In terms of domestic and global oil pricing, the timing is getting better. WTI Crude settled at $73.41 or 1.41% higher. Brent Crude closed even higher at $75.94, 1.61% up for the day. Both are priced well in excess of the $46.26 per barrel pricing used by petroleum engineer Mark McBryde in computing the value of the underlying oil — or assets under management (AUM) — at the Green Lease Site. His report found values of 229,400 “probable” barrels of oil with pre-tax future net revenues of $5,781,300 and “possible” oil at the leased site at 448,000 barrels — worth $12,755,300 at present value. All are less extraction costs already computed in those numbers.
AGYP drew market interest when it filed its initial July 22, 2021 ‘Reserve Report’ which details proven, probable and possible oil reserves on all of its current leases, starting with an engineering report on its Green Lease site. Prepared by Mark McBryde, petroleum engineer, the Green Lease site report has already been filed with the OTC as a supplemental disclosure.
Another report to AGYP is expected from McBryde on the proven Annie Gilmer lease site. All reports by site will be made available to the OTC markets via supplemental disclosure. Electrification of the Green Lease Site to its Wells was seen as confirmation that AGYP management is closer now on pumping — and selling oil — from its Wells on the site, rather than simply finding it. AGYP has already negotiated for the dominant share of the oil revenue generated by these wells.
AGYP investors are showing patience waiting for the other shoe to drop — actually seeing oil pumping from these proven well sites. As the stock price dips, they see a loading zone opportunity to acquire more shares at an attractive price. Applying new technology to abandoned well sites which haven’t been worked since the 19490’s is detailed in a PDF presentation prepared for AGYP by an international oil & gas consulting firm.
Primary to investors is the initial report on the Green Lease site and expertise of author and petroleum engineer Mark McBryde. George Montieth, CEO of AGYP, said, “Mark is a respected oil man with a long history of success within the industry…and has worked for senior oil companies. The reserve report that Mark is preparing will provide the company with a financial valuation that can be used within the oil and gas industry.”