Allied Energy Corp (AGYP)

[BCNstocks]

P4 / P5 PERMITS

AGYP received their P4 and P5 permits in under the name, Allied Operating LLC, from the Texas Railroad Commission to operate oil and gas wells in the State of Texas. These are a type of surety bond.

These types of surety bonds are required to ensure that oil and gas operations in Texas follow all of the state rules and regulations that apply to them. This is why oil and gas blanket bonds are an important part of the permitting process. In the event that a company does not abide by the regulations set forth by the state, a P-5 oil and gas surety bond provides a path for recourse and protects the state from financial loss. This encourages responsibility in the drilling world, so that the state of Texas can ensure that businesses operate in the best interests of all Texans.

How much does a Texas Oil and Gas Blanket Bond cost?

There are several bond amounts associated with the P-5 bond. There are blanket bond amounts of $25,000, $50,000 and $250,000. There is also a calculation available to organizations that solely operate oil and gas wells, $2 for every foot of total well depth. The actual surety bond cost (called the premium) depends on the size of the bond and the credit of the applicant. The premium will be a small percentage of the total value of the bond. The exact amount depends on the applicant's financial history and credit. As expected, riskier applicants pay more, but they're not necessarily denied a bond simply because of bad credit. If you need help getting a bond because of your credit, count on Viking Bond Service to find you options when others can't

https://www.performancesuretybonds.com/surety-bond/texas-p5-bond/