The Omicron variant unsettles global oil markets again. According to CNBC, OPEC+ will remain with its schedule of pumping 400,000 barrels daily. Bank of America is holding to its prediction of $85 a barrel oil in 2022 and $100+ per barrel if air travel rebounds, Bloomberg says.
The US government is moving in multiple directions at once. It is tapping the U.S. Strategic Petroleum Reserve for 500 million gallons. At the same time, it is considering raising licensing fees for new oil wells on government land.
Independent driller Allied Energy Corp. (OTCMKTS: AGYP), in the midst of all these issues, has already hit oil on five wells on its Green Lease and Annie Gilmer leased sites in Texas. The value of AGYP’s reserves of oil and gas energy it is sitting on is swinging wildly.
Put AGYP’s stock in perspective. Domestic oil, proven and probable, is valuable for several reasons now. It does not have to be shipped from the Middle East. And AGYP’s experienced management is only drilling at sites where once-commercial wells performed.
These abandoned or closed wells are making new energy again as AGYP specializes in bringing them to life. It is now focusing on Well H-1 at the Prometheus leased site. It makes old wells energy-commercial again.
WTI and Brent Crude oil prices fell in the last few weeks. No more. Both indices are climbing again and reaching close to or exceeding $70 per barrel, site oil.com says.
To put the recent price drop in perspective, The Wall Street Journal reports a 45% increase in WTI Crude YTD. For AGYP, the short-term and long-term moves in crude is a positive. Oil prices are steadily rising again and BOA yesterday still sees it reaching higher than $100 per barrel in 2022.
New 2021 techniques AGYP applies to abandoned or closed wells include horizontal ‘legs’, down hole drilling and fracking.
Last summer an oil engineer reported in OTC Filings that AGYP’s proved, possible and probable reserves at the Green Lease and Annie Gilmer sites combined were some $32 million. He was computing at old prices and never analyzed the Prometheus site.
Any oil is precious today. The catalyst for AGYP is that it is a U.S. oil-producing Company.
Keep AGYP on your energy watch list as it is seen producing more oil & gas energy in the future. Oil and gas prices are rising again as energy supplies remain scarce.
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