Allied Energy Corp.’s (OTCMKTS:AGYP) stock rose yesterday by 6.43% to $0.3242 in heavy volume of 928,569. That’s significantly higher than its daily average. The reason: winter demand is coming for oil which remains priced higher and scarce.
Both major indices closed green again last evening and remained high. WTI Crude last night settled green at $82.07 and Brent Crude rose to $83.61, according to oil.com. Bank of America sees oil skyrocketing by 43% to $220 per barrel by next summer. Brent Crude is up 62% YTD.
The squeeze is on in oil and winter demand looms. AGYP is well positioned. Early on, it was exploring for new energy and gas. As an independent operating in Texas, it hit oil in five wells and now is looking for more. Documentation of AGYP’s findings were reported to the Texas RR Commission.
President Biden may move this week to address the spiraling prices and shortages in oil. Insiders say that the Administration may finally tap the nation’s Strategic Reserve for more oil and reduce prices of gas at the pumps.
Meanwhile, OPEC+ refuses Biden’s demands to produce more oil for an energy-short U.S. Biden says he has other tools in his arsenal to help, but besides tapping the 600 million barrels in the reserves what else can he do?
OPEC+ continues to produce daily only what it had agreed to in the past: 400,000 bpd. Yesterday, the UAE said that the OPEC+ is capable of raising oil production if necessary. Until now, it has not heeded calls for more oil. In fact, the UAE says it is balancing the oil market and constraining oil prices and supplies.
To AGYP, oil pricing directly impacts its assets-under-management valuation. After weeks of red-hot rising price increases, the major oil indices remain high. All of this bodes well for future oil and overall energy production,
AGYP is a small independent, but it plays an important role. It has already hit five oil and gas wells combined on the Texas Green Lease Sites and Annie Gilmer Sites. Ahead is the Company’s exploration of the promising Prometheus site. AGYP is focusing on the 28 Unit Well 1-H at the Prometheus well site.
AGYP’s catalyst is that it is pumping oil within the U.S. AGYP is making older or abandoned commercial wells new again.
AGYP performed spectacularly on the five wells where it hit and gas. Now it is exploring for more at Prometheus. It uses 2021 technology to revive these wells. The newest techniques include fracking, down hole drilling and horizontal ‘legs’.
An oil and gas engineer early last summer determined that AGYP had some $32 million in oil and gas reserves at current prices. He used now out-dated $46 per barrel market pricing in effect at the time. He also has not analyzed potential oil and gas reserves at Prometheus.
Reuters reports a larger number of oil and gas independents and even majors are cranking up the wells again. The reason: sharply higher oil prices that remain high despite some swings.
As a result, Reuters reports this weekend that U.S. energy independent oil drillers are bringing out the rigs again. Their number rose for the second week in a row. Six more were added last week to raise the new total number to 550. That’s the highest number since April 2020.
Total rig count was up 250 rigs — or 83% more than this time last year. Baker Hughes Co. says in its report that that U.S. oil rigs rose to 450 last week, while gas rigs remained unchanged at 100. Most are located in the Permian Basin in Texas and New Mexico.
Firms such as BP, Chevron, Exxon Mobil Corp. and Occidental Petroleum are planning to increase spending and planning to pump additional fossil fuels.
Keep AGYP on your Watch List as energy stocks are rising in value as winter demand is coming.
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