Allied Energy Corp. (OTCMKTS:AGYP) Closes At $0.5800 Monday In Sell Off Market As Dow, Global Oil Prices Tumble
Allied Energy Corp. (OTCMKTS:AGYP) says Monday (July 19, 2021) it continues to make progress at its Green Lease and Gilmer oil lease sites as global oil drops and Dow suffers 725.81 (2.09%) selloff to 33,962.04. Now it’s a race to beat tumbling oil as dispute between OPEC, UAE and other major oil producers end, with WTI crude hitting $66.42 barrel (down 7.51%) and Brent Crude settling at $68.71 (off 6.63%) last night, according to Bloomberg. AGYP closed at $0.5800 in a free-fall Dow market in heavy trading, reaching almost double the daily average at 790,486. This 18.1369% point drop runs counter to AGYP’s positive updates on progress on its primary two lease sites in Texas: Green Lease and Gilmer.
This boutique oil and gas company updated news on its progress. George Montieth, CEO of AGYP, said in the update: “I am pleased to inform our stakeholders that we have work crews scheduled at both the Green Lease site and the Annie Gilmer Lease site. Everyone is anxious to make up for the time we lost due to heavy rains in North Texas. The ground has finally dried out, and we can easily and safely move equipment onto and around the lease sites.”
On the Green Lease site, he added, crews have cleared well site location and constructed base for new, large pumping units and fixed battery plant for production. At Gilmer, battery roads to wells have been cleared and company commenced flow line installation to wells to battery production from wells. That progress Is important news because AGYP now finds itself in a global race with dropping prices at WTI and Brent crude. Earlier, AGYP’s twitter update was “M-1 Well Pumping. The pump corrected itself and it is now running fine.” Hopefully, Texas is drying out long-term for more well site gains at AGYP because the race to deliver oil-at-a-profitable-price is on.
As predicted by energy experts, the stand-off dispute between OPEC, Saudi Arabia and UAE offered a short term opportunity for independents. AGYP still offers assets-under-management (AUM) advantages in the U.S. locations, ready to pump oil from U.S. soil, but AGYP no longer can count on rising global oil prices. Closer distance is still an advantage for AGYP-generated oil against the Middle East and Russian-based major producers, but AGYP has time challenges.
For example, this global group has agreed to up production by 400,000 barrels daily starting in August, according to a report from IBD. Then these producers together agreed to continue producing at that level through September 2022. Here’s the unknown: if COVID-19 variant strains interfere with the worldwide economic rebound — that’s why the Dow and other markets fell hard today — then oil production will no longer need to be ramped up to meet accelerated demand. Proposals to re-mask even inoculated consumers can serve to drop economic turnarounds in several countries, setting back industries from travel to F&B at resorts/hotels. The demand worldwide for oil could decline again.
In this volatile climate, AGYP can slide in between the major oil producers which cannot turn on and off production levels as COVID-19 may demand. Instead, AGYP may offer oil barrels in a localized market at an efficient rate — remaking abandoned or non-working wells with new technology that can make their proven reserves new again. Think sophisticated fracking and hydrocarbon sourcing from shale. The Gilmer site has produced in its lifetime more than five hundred thousand barrels of high gravity oil and more than five hundred million cubic feet of natural gas.
AGYP keeps short and long investors and shareholders current on its progress at its Well M1 at its Green Lease location in Texas. AGYP also believes its Green Lease Well K-3 is progressing, as well. For details, see AGYP’s company tweets. AGYP typically enters valuable agreements for 100% working interest and 80% net revenue interest stakes in wells with the leasehold owners.