You cannot always believe what you read on the internet or anywhere else. This is the reason I will never ever buy another penny stock.
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(ARA) - With oil and gas prices at an all-time high, most consumers have experienced pain at the pump when they fill up their vehicles. However, the old saying, “One man’s pain is another man’s gain,” could be true. There are ways for the consumer to profit from high gas prices.
A lot of the oil wells in this country are on land owned by farmers and cattlemen who own the mineral rights. These mineral rights owners lease the land to oil companies who produce oil and natural gas found on the property. As long as the oil companies are producing oil and natural gas they own the rights. When they stop production the lease reverts back to the mineral rights owners who can then re-lease the rights again.
After 9/11, oil and gas prices dropped so low that many independent oil companies stopped production and folded because they could not afford to keep the wells running. Wells that were no longer functioning had to be “plugged.” At the time, a small company called Allenergy Inc. plugged wells for many different companies and municipalities.
In 2005, a new CEO named Larry Sanford came on board and changed the direction of the company. Sanford decided to push the company in the direction of oil and natural gas production so he started to acquire leases that contained existing “plugged” wells.
“We thought we could be considerably more successful if we made the transition from plugging wells to generating revenues from oil and gas,” says Sanford.
Over the last few years, Allenergy has acquired thousands of acres of leases in Kansas and Oklahoma with more than 150 oil and natural gas wells. Allenergy also acquired a service company, Rex Horning Well Services, so that it could maintain its own wells and generate additional revenues from servicing other oil companies and utilities in the area.
The results have been very impressive for this unknown gem. In the first quarter of this year, revenues were up significantly. Allenergy’s production was up 683 percent year over year.
The company is positioned to be extremely profitable for many years to come regardless of any oil price fluctuation and the recent higher prices have only further fanned the flames of profitability.
Because Allenergy is environmentally conscious, it has won the favor of mineral rights owners and acquired leases that were sought after by much larger oil companies. To this day, the company continues to acquire more acreage with wells. Many of Allenergy’s leases have untapped acreage, which can produce additional significant oil and natural gas. Therefore, they have undertaken an extensive drilling program that is increasing production, profitability, and adding to the bottom line.
Before Allenergy becomes a household name, those who purchase Allenergy’s stock have the opportunity to participate in the company’s growth and successes with very limited risk. Whether you decide to invest in Allenergy or are just concerned about all the money being sent abroad, it is comforting to see a U.S. company prosper and profit from the increase in oil and gas prices.
Your pain from the pump will diminish when you know that you are reaping the rewards and profits of higher oil and gas prices and participating in an American company’s success story. Allenergy (ALRY.PK) is a penny stock as was Microsoft ( MSFT.N) prior to becoming a behemoth. For more information, visit www.allenergyinc.com.
AI
