A notable OTC oil company worth a second look is Allied Energy Corporation (OTC: AGYP) which stands out from other penny oil stocks due to its strategy of targeting abandoned or marginal oils wells. According to the Environmental Protection Agency, at least 3.2 million abandoned wells exist throughout the United States. The majority of these wells are still equipped with items used for the site which reduces the initial costs of production. AGYP stock has seen some volatility lately following its peak at .4385 on September 15th, but has made gains throughout early trading on September 22nd.

Catalysts

Allied Energy Corporation is an oil and gas company with a goal to acquire gas and oil reserves in certain parts of the United States. For this reason, AGYP secured a 100% working interest and 80% net revenue interest ownership stake in the two wells on its Green Lease Site in March. Based on research showing that these particular reservoirs could be accessed through both vertical and horizontal drilling, AGYP staked out its path to production early on. Since then the company has worked through delays before bringing on a petroleum engineer to evaluate its Green Lease and Annie Gilmer sites.

Based on this professional analysis, the Green Lease site is believed to have 229,400 “probable” barrels of oil and 448,000 “possible” barrels. While the Annie Gilmer is expected to have 80,400 “probable” barrels of oil and 135,500 “possible” barrels of oil. Using the conservative price point of $46.26 per barrel, the Green Lease site holds $2,944,900 of proved oil and $18,536,600 of probable and possible oil while the Annie Gilmer site holds $6,704,900 in proved oil and gas reserves with $5,489,900 in probable and possible reserves.

AGYP has shared its proof positive results via videos of its production activity on Twitter. Most recently, AGYP’s team has installed pumpjacks on its Green Lease site well with promises of more updates to come. With this rapid progress, AGYP’s CEO George Montieth shared that “Allied is now on the cusp of becoming a producing oil company” which is excellent news for loyal shareholders.

Media Sentiment

What can we say, with style like @jeniferclara102 maybe going long is worthwhile.

Technical Analysis

penny oil stocks AGYP chart

Trading at $.033, AGYP has backslid since its gains. AGYP shows a resistance level at .3706 and an immediate support at .3107 and a secondary support at .2976. The stock has a high accumulation despite a low RSI of 45.5. The MACD is on the downside with a bullish crossover imminent.

Should you Buy?

AGYP has made a significant step forward with its production and considering the importance of petroleum this stock could be a good investment opportunity. The chance of its production growing more if it expands to other sites presents long-term gains for investors. With this in mind, bullish investors may see this as a dip buy opportunity as long-term investors hold out for results of production. Given the volatility of oil, AGYP may experience sympathy volatility contingent on good news for the oil sector or production making it one of the best oil penny stocks to consider for the near future.

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