Allied Energy Corp. (OTC: AGYP) is a company that acquires oil and gas reserves in the most hydrocarbon-rich areas of the United States. Its main focus is on reworking and recompleting existing oil and gas wells. With the increase in oil demand, the company has a promising future and like other energy penny stocks, it is likely to play a central role in the US’ search for oil independence.
Recently, they released an update regarding their newly acquired 325-acre Prometheus Lease site. AGYP revealed its three-phase plan to bring the Prometheus H1 well back online. The execution of the plan could possibly bring positive changes for this low priced stock.
AGYP decided to acquire the Prometheus Lease site because of the company’s interest in the 28 Unit Well 1H, which produces around 200 oil bpd and 300 thousand cubic feet of natural gas per day. The acquisition came with a promise from the CEO, George Montieth, to utilize the company’s resources, experience and technologies to surpass these numbers and increase value for shareholders.
On November 16th, AGYP announced a detailed three-phase plan to bring the Prometheus H1 well back online which they have already partially executed. The first phase of the plan was to unload tubing that ran into the well, and finish assembling the 5-stage pump and motor. In phase two, the crew will connect everything to the electrical service. In the last phase, they will build up the horsepower of the pump and establish full production settings.
As of now, the workover crew is waiting for the electric utility to change out the currently undersized transformers. This change will enable it to handle the increased workload and allow the site progress to continue as the Prometheus Lease acquisition is “the Company’s most significant holding to date,” according to the company’s CEO, George Montieth, He went on to say, that all the company’s resources are aimed at bringing the Prometheus Well 1H back to production.
This update comes as AGYP’s Gilmer site faces delays due to pump issues, which the CEO attributed to the “growing pains of an oil producing company.” He stated that the company’s crew is currently working on fixing those delays. As usual, the company is expected to update its shareholders with a video of its progress when these issues are fixed.
Investor @MyelNancy thinks now could be a good loading point for AGYP anticipating another run up soon.
AGYP is currently trading at $.3068 and it has a support at .2926. while its resistance lies at .3504.The MACD had a bearish crossover to the downside while the RSI is at 45.80. Accumulation is beginning to spike upwards following downward trend.
Should you Buy
AGYP continues to expand its assets working on production at its Prometheus Lease and Gilmer sites. The company sent its crew to the Prometheus Lease to jump start production which will start as soon as changes are made to its undersized transformers. It’s worth noting that the company was transparent about facing delays at its Gilmer site and will update shareholders regarding its progress soon. This could lead to a rebound in the stock’s current PPS as interest increases for energy penny stocks across the board.
Please visit and read our disclaimer here.
Don’t forget we have a Youtube Channel with at least biweekly releases on the latest and greatest runners!