Allied Energy Corp (AGYP)

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AGYP PRODUCTION AT ANNIE GILMER AND PROMETHEUS SITES

** At Annie Gilmer site, AGYP's pumps are producing between 160 and 300 barrels of total fluids daily. They have a 2.5-5% oil cut. A newer and more powerful electrical submersible pump (ESP) is designed to handle 1,500 barrels of fluid daily. At a 2.5% oil cut, that's 37.5 barrels daily or 13,687.5 barrels annually. At a $80 price per barrel, that's $1,095,000 annually.

** At a 5% cut, even higher prices result. This cut would mean 75 barrels daily. At $80 per barrel, annualized value would reach $2,190,000.

** Annie Gilmer oil production could grow higher as AGYP is in talks with Tri-County to set up 3-phase/200 amp service and add the ESP electrical pumps.

** At its Prometheus lease Well 1H, AGYP is pumping more. AGYP is pumping 2,000 to 2,400 barrels of fluid daily. At the same cut of 2.5%, it is pumping 50 barrels of oil daily. Using a $80 oil price for our projection, that gives AGYP $4,000 daily. Annually, it would translate into $1,460,000.