Allied Energy Corp. (OTC: AGYP) has renergized new and long-term investors eager to buy the dip by dropping a summary of estimated reserves and net present value for its Green Lease wells.

Capitalizing on new technology, Allied Energy Corp. aims to exploit America’s estimated 420,000 marginal, shut-in oil wells. Targeting wells with the potential to produce 10-50 barrels per day, the company chose Green Lease based on nearby, analogous fields that have shown production 6 times over Green Lease’s total, observed production. Coinciding with this opportune moment of increased US oil demand and $72 WTI futures, investors anticipate their investment in AGYP stock will soon come to fruition. 

Green Lease Wells Report

After acquiring a drilling license for the state of Texas in April, AGYP has been pursuing overlooked reserves without the sunk costs of exploration and drilling. Having installed a pump jack earlier this month, AGYP’s team will soon be able to determine the site’s bp/d flow rate. 

But according to the publicly available report – filled as an OTC supplemental disclosure – the Green Lease wells hold 229,400 “probable” barrels of oil and 448,000 “possible” barrels. Oil industry expert and AGYP Production Engineer, Mark McBryde, compiled this report in accordance with the U.S. SEC which differentiates based on the oil’s likelihood of recovery. Therefore, these estimates are the most conservative calculations possible. At the low price point of only $46.26 per barrel, McBryde estimates the pre-tax future net revenues to be $5,781,300 and $12,755,300 respectively. 

With the first report completed, McBryde will continue creating executive summaries of each separate lease detailed on the Engineering Report. The culminating Reserve Report will be released as a supplemental disclosure to provide a clear understanding of Allied’s total resources. In the meantime, AGYP has been continuously releasing updates with videos and pictures from the Green Lease site, fueling anticipation for an eventual payoff for AGYP stock investors once production hits.

Following the report’s  release, investors are eager to see estimates regarding the assets under management for AGYP’s re-pressurized Annie Gilmer site. But AGYP management appears busy electrifying the Green Lease site – signaling a move towards pumping oil directly. This is in line with CEO George Monteith’s reported goal of having “numerous wells at two diverse tenancy sites manufacturing every day”. Similarly, AGYP appears to have work teams arranged at both sites in an effort to make up for lost time.  

Currently trading at $.4008, AGYP stock price has dipped since July 12th when it peaked at $.83 – a 52-week high for the stock. With a market cap of  $26 million, Allied Energy Corp. has a volume of around 90 thousand compared to an average volume of 441 thousand. Bullish investors have been heavily accumulating the dip waiting for the site development to go accordingly and new announcements to come out regarding production to be released. With all the aforementioned catalysts it’s possible the stock will reach $.90 or even a whole dollar in the weeks ahead. 

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