Allied Energy Corp (AGYP)

[MyelSasha]

Looks like Q1-2022 will have more productions from several sites plus sales from its productions >>

With 12 exploration projects in the works, AGYP has had to work consistently to maintain its production timeline. These efforts appear to have paid off given that the 300-acre Gilmer site producing oil and gas since October and the 980-acre Green Lease producing since September.

According to an engineering and economic evaluation of the sites’ reserves, the Green Lease site holds $2,944,900 of proved oil and a total of $18,536,600 for both probable and possible oil. Meanwhile, Annie Gilmer site holds $6,704,900 in proved oil and gas reserves with $5,489,900 in probable and possible reserves.

The company has major plans for both sites in 2022. For the Green lease, AGYP plans to install the second ESP on Well X-3 once the assessment of Well M-1 is complete. If both wells prove successful, AGYP plans to evaluate three other wells at the site. Upon ensuring favorable production rates, AGYP will focus on developing a 3D seismic survey to identify other potential drilling targets on the site.

Looking at the Gilmer lease in 2021, the pump set-up yielded an average of 160 to 300 barrels of total fluids on a daily basis. However, the company is adamant on achieving maximum potential and is intends to establish a pump setup that attains 1000 barrels of fluid per well every day. To do that, AGYP is now working with Tri-County to install a 3-phase/200 amp service to the lease before Q1 ends. If successful, AGYP plans to set an electrical submersible pump (ESP) in one of the wells to produce up to 1500 barrels of fluid daily. By doing this, the company could ramp up production and easily capitalize on the increasing supply shortages.

With these two lucrative sites now operating, the company has dedicated its efforts to preparing its newest and most promising site for production – the 325-acre Prometheus site. By drawing down the fluid at a pace of 2000 to 2400 barrels per day, the Prometheus site has generated a total of 3 loads – with each load carrying 160-170 oil barrels – for the company in 2021.

As of Q1, the company reported continuous sales generated from the Well 1H. However, to maximize its potential and improve its oil production, AGYP is now focused on installing a transfer pump and flaring all the gas to reduce the pressure in the well. If successful, these efforts will result in an increase in oil production for the well and will lead to massive increase in the site’s growth numbers.

$AGYP